- 2024-10-29T00:00:00
- Company Research
- TV2 announced its Q3 2024 results with revenue of VND292bn (~USD11.5mn; +38% YoY) and reported NPAT-MI of VND19bn (USD0.748 mn; +14% YoY).
- For 9M 2024, total revenue achieved VND892bn (~USD35.1mn; +86% YoY) and NPAT-MI was VND45bn (~USD1.7mn; +13% YoY). These results complete 64% and 65% of our respective full-year revenue and NPAT-MI forecasts and are broadly in line with our expectations. Strong profits from the mechanical manufacturing segment and lower-than-expected G&A expenses may offset the lower-than-expected gross profit from the electricity selling segment, as well as higher-than-expected financial expenses, pending a fuller review.
- We expect TV2 to record strong revenue in Q4 due to the nature of the construction business. Strong 9M and 2024 revenue were mainly driven by VND500bn in revenue from the EPC contract for the Hau Giang biomass power project, revenue from 500kV transmission lines, and VND400bn from the power consulting subsegment as we expect it to rebound from 2023’s low base.
- We currently have a MARKET PERFORM rating with a target price of VND32,200/share for TV2.
TV2’s 9M 2024 results (VNDbn)
VND bn | Q3 2023 | Q3 2024 | YoY | 9M 2023 | 9M 2024 | YoY | % of Vietcap’s 2024F |
Revenue | 211 | 292 | 38% | 481 | 892 | 86% | 64% |
Consultancy, EPC, O&M | 204 | 270 | 32% | 455 | 841 | 85% | 64% |
Mechanical manufacturing | 2 | 16 | 828% | 10 | 37 | 270% | 73% |
Selling eletricity | 5 | 5 | -1% | 16 | 15 | -6% | 63% |
Others | 0 | 0 | 1% | 0 | 0 | 126% | 227% |
COGS | -175 | -240 | 37% | -381 | -763 | 100% | 66% |
Gross profit | 36 | 52 | 43% | 100 | 129 | 29% | 55% |
Consultancy, EPC, O&M | 35 | 50 | 42% | 98 | 122 | 24% | 54% |
Mechanical manufacturing | 0 | 26 | N.M. | 0 | 27 | N.M. | 1070% |
Selling electricity | 1 | -23 | N.M. | 2 | -20 | N.M. | N.M. |
Others | 0 | 0 | 1% | 0 | 0 | 126% | N.M. |
Sales and marketing exp | 0 | -1 | 1182% | 0 | -4 | N.M. | 66% |
G&A | -20 | -29 | 50% | -64 | -65 | 2% | 44% |
Operating profit | 17 | 24 | 44% | 36 | 58 | 61% | 68% |
Financial income | 7 | 4 | -44% | 19 | 13 | -28% | 74% |
Financial expenses | -3 | -2 | -36% | -7 | -16 | 114% | 90% |
In which: Interest expense | -2 | -2 | 33% | -5 | -6 | 20% | 73% |
Share profit/loss fr associates | 0 | 0 | N.M. | 0 | 0 | N.M. | N.M. |
Net other income/loss | 0 | -1 | N.M. | 2 | -1 | N.M. | N.M. |
Profit before tax | 21 | 24 | 16% | 49 | 54 | 10% | 63% |
Income Tax Expense | -4 | -5 | 26% | -9 | -10 | 11% | 60% |
NPAT | 17 | 19 | 14% | 40 | 45 | 13% | 65% |
Minority Interests | 0 | 0 | N.M. | 0 | 0 | N.M. | N.M. |
Reported NPAT-MI | 17 | 19 | 14% | 40 | 45 | 13% | 65% |
Source: TV2, Vietcap
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