VTP – 19% YoY earnings growth driven by robust services segment

* 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