GVR - Solid profit growth in H1 2022 - Earnings Flash

- GVR announced Q2 2022 results with revenue edging down 2.3% YoY to VND5.6tn (USD242mn) while NPAT-MI increased 26% YoY to VND1.1tn (USD46mn). The top-line decline in Q2 2022 was mainly driven by the natural rubber segment (including rubber latex and products) declining 12% YoY to VND3.7tn (USD161mn), which accounted for 66% of total revenue in the quarter. Meanwhile, the bottom-line growth in Q2 2022 was mainly driven by a YoY plunge in minority interest that we believe was due to a YoY decline in the rubber product segment (GVR only owns a 51% stake in main rubber product manufacturer VRG Khai Hoan JSC). 

- In H1 2022, revenue was flat YoY at VND10.5tn (USD454mn), but NPAT-MI surged 35% YoY to VND2.1tn (USD92mn), representing 36% and 43% of our full-year forecasts, respectively. We anticipate no significant risks to our forecasts as Q4 is normally a peak season for natural rubber latex exports and as higher-than-expected net other income offset lower-than-expected financial income in H1 2022.

Powered by Froala Editor