VTP – 19% YoY earnings growth driven by robust services segment – Earnings Flash
  • 2025-05-05T00:00:00
  • Company Research

* Q1 2025 results:

- VTP released its Q1 2025 results with net revenue of VND5.0tn (USD197.7mn; +8% YoY) and NPAT-MI of VND69bn (USD2.7mn; +19% YoY). Revenue growth was driven by significant 25% YoY revenue growth of the services segment outweighing lower trading revenue YoY. The services segment’s GPM also expanded, contributing to earnings growth despite higher SG&A expenses and weaker net financial income.

- The results fulfilled 30% and 17% of our respective full-year forecasts. We see potential downside risks to our 2025F forecasts due to higher-than-expected SG&A expenses and lower-than-expected net financial income, pending a more comprehensive review.

* Segmental performance in Q1 2025:

- Services segment:

+ We attribute services revenue growth to strong growth in parcel volume. Gross merchandise value from the top five e-commerce marketplaces in Vietnam (i.e., Shopee, Lazada, Tiktok Shop, Tiki, and Sendo) increased by 42% YoY in Q1 2025 and the total number of sold products rose by 24% YoY, per Metric – a third-party market research firm.

+ The segment’s GPM improved 1.6 ppts YoY to 7.8% in Q1 2025, which we partly attribute to decreased gasoline prices, proxied by an 11% YoY decline in the average Vietnamese RON-95 gasoline retail price.

- Trading segment: Revenue declined 16% YoY due to VTP continuing to scale down its mobile phone card selling business.

VTP’s Q1 2025 results

VND bn

Q1 2024

Q1 2025

YoY

Q1 2025/

Vietcap’s 2025F

Net revenue

4,674

5,042

8%

30%

Services

2,699

3,375

25%

22%

Trading

1,975

1,667

-16%

106%

Gross profit

167

265

59%

25%

Services

165

262

59%

25%

Trading

2

3

70%

98%

SG&A expenses

-111

-175

57%

31%

EBIT

55

89

61%

19%

PBT

74

89

21%

17%

NPAT-MI

58

69

19%

17%

GPM

3.6%

5.2%

1.7 ppts

 

Services

6.1%

7.8%

1.6 ppts

 

Trading

0.1%

0.2%

0.1 ppts

 

OPM

1.2%

1.8%

0.6 ppts

 

NPM

1.3%

1.4%

0.1 ppts

 

Source: VTP, Vietcap

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