TV2 - Reported NPAT-MI grows 23% YoY, slightly trails forecast - Earnings Flash
  • 2025-01-24T00:00:00
  • Company Research
  • TV2 reported Q4 2024 revenue of VND444bn (-24% YoY) and NPAT-MI of VND23bn (+73% YoY). Strong growth in NPAT-MI was mainly driven by a 66% YoY reduction in financial expenses, as no provisions were made this year compared to provisions for the Tan Thuan wind power plant in Q4 2023. This improvement outweighed a 19% YoY decline in operating profit, which was impacted by a 27% YoY decrease in consultancy, EPC, and O&M revenue.
  • For 2024, TV2 reported revenue of VND1.4tn (+26% YoY) and NPAT-MI of VND65bn (+23% YoY). NPAT-MI growth was driven by a 53% YoY reduction in financial expenses and a 32% YoY decrease in G&A expenses, which outweighed a 19% YoY decline in gross profit. The drop in gross profit was mainly due to a 21% YoY decrease in gross profit from consultancy, EPC, and O&M segments.
  • TV2’s results achieved 96% of our revenue and 95% of our reported NPAT-MI forecasts. The slightly lower-than-expected NPAT-MI was primarily due to lower-than-expected GPM, which outweighed the benefits of lower-than-expected G&A and financial expenses. We see slight downside risk to our 2025 earnings forecasts pending further review.
  • We currently have a MARKET PERFORM rating with a target price of VND32,200/share for TV2.

TV2’s 2024 results (VNDbn)

VNDbn

Q4
 2023

Q4
 2024

% YoY

2023

2024

% YoY

% of Vietcap’s 2024F

Revenue

581

444

-24%

1,061

1,336

26%

96%

Consultancy, EPC, O&M

515

376

-27%

970

1,217

26%

92%

Mechanical manufacturing

62

63

2%

72

100

39%

200%

Selling electricity

4

4

3%

20

19

-4%

81%

Others

0

0

N.M

0

0

298%

398%

COGS

-443

-379

-14%

-824

-1,143

39%

98%

Gross profit

138

64

-53%

238

193

-19%

82%

Consultancy, EPC, O&M

127

56

-56%

225

178

-21%

78%

Mechanical manufacturing

7

-17

N.M.

6

10

53%

382%

Selling electricity

5

25

449%

6

6

-8%

86%

Others

0

0

N.M.

0

0

N.M.

443%

Sales and marketing exp

-2

-2

-4%

-2

-6

219%

92%

G&A

-102

-34

-66%

-165

-113

-32%

78%

Operating profit

35

28

-19%

71

75

6%

88%

Financial income

8

6

-16%

26

20

-25%

110%

Financial expenses

-26

-9

-66%

-33

-16

-53%

89%

In which: Interest expense

-2

-2

11%

-7

-8

18%

93%

Share profit/loss from associates

0

0

N.M.

0

0

N.M.

N.M.

Net other income/loss

0

2

N.M.

1

1

N.M.

N.M.

Profit before tax

17

28

68%

66

80

22%

94%

Income Tax Expense

-3

-5

47%

-12

-15

20%

88%

NPAT

13

23

73%

53

65

23%

95%

Minority Interests

0

0

N.M.

0

0

N.M.

N.M.

Reported NPAT-MI

13

23

73%

53

65

23%

95%

Source: TV2, Vietcap

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