Vietcap Mobile App 
Vietcap Trading 
Download Vietcap Pro 
Open Account 
Vietcap IQ 
User Guides 
- TV2 announced its Q2 2024 results with revenue of VND362bn (USD14.3mn ; +150% YoY) and reported NPAT-MI of VND12bn (USD0.5mn; -11% YoY). For H1 2024, the company reported total revenue of VND601bn (USD23.7mn; +123% YoY) and NPAT-MI of VND24bn (USD0.9mn; +5.4% YoY). These results fulfill 28%/28% of our respective full-year forecasts in the scenario with the Song Hau 2 Project (“SH2P”) and 39%/30% of our 2024F in the scenario excluding the project.
- We attribute the tremendous surge in revenue to (1) the completion of TV2’s designing and consulting contract for the 500kV line 3 project, which was handed off in Q1, and (2) a substantial increase in the contribution of the Biomass Hau Giang EPC project, which is at its peak with an expected COD in December of this year. For the first half of 2024, revenue from the latter project was VND357bn (USD14.1mn), which is ~60% of the total revenue in this period. However, this increase in revenue is majorily offset by a higher increase in COGS (+154% YoY) to deliver more subdued NPAT-MI growth of 5.4%. Coupled with the fall of SH2P, we currently see downside risk to our earnings forecast.
- On July 1, 2024, the Ministry of Industry & Trade sent a letter to Song Hau 2 Power Company Limited (“SH2”), wholly owned by Toyo Group, announcing that the BOT contract between the ministry and Toyo was terminated, due to the investor’s failure to meet the Financial Closure (“FC”) deadline by June 30, 2024. Although Toyo is still seeking legal advice to remedy and re-initiate the project, we find it challenging for TV2 to begin recording revenue from the EPC contract with SH2 in 2024, even in the best case scenario. As a result, we see a downward adjustment to our 2024F earnings and aggregate 2024-2028 earnings forecasts.
- We currently have a target price of VND32,000/share for TV2 in the scenario excluding SH2P and VND58,300/share in the scenario including SH2P.
TV2’s H1 2024 results
VNDbn | Q2 2023 | Q2 2024 | % YoY | H1 2023 | H1 2024 | % YoY | % of Vietcap’s 2024F | % of Vietcap’s 2024F |
Revenue | 145 | 362 | 150% | 270 | 601 | 123% | 28% | 39% |
COGS | -107 | -321 | 199% | -206 | -524 | 154% | 28% | 41% |
Gross profit | 38 | 42 | 10% | 63 | 77 | 22% | 26% | 27% |
Sales and marketing exp | 0 | -2 | N.M. | 0 | -3 | N.M. | 46% | N.M. |
G&A expenses | -26 | -25 | -1% | -44 | -49 | 12% | 25% | 26% |
Operating Profit | 12 | 14 | 18% | 19 | 25 | 27% | 26% | 27% |
Financial income | 6 | 3 | -40% | 11 | 9 | -18% | 34% | 34% |
Financial expenses | -2 | -3 | 17% | -4 | -5 | 17% | 35% | 25% |
In which: Interest expense | -2 | -2 | 13% | -4 | -4 | 15% | 31% | 44% |
Shared profit/loss fr associates | 0 | 0 | N.M. | 0 | 0 | N.M. | N.M | N.M |
Net other income/loss | 2 | 0 | N.M. | 2 | 0 | N.M. | N.M | N.M |
Profit before tax | 17 | 15 | -11% | 28 | 29 | 4% | 27% | 29% |
Income Tax Expense | -3 | -3 | -8% | -5 | -5 | -1% | 25% | 27% |
NPAT | 14 | 12 | -11% | 22 | 24 | 5% | 28% | 30% |
Minority Interests | 0 | 0 | N.M. | 0 | 0 | N.M. | N.M | N.M. |
Reported NPAT-MI | 14 | 12 | -11% | 22 | 24 | 5% | 28% | 30% |
% | Q2 2023 | Q2 2024 | YoY Δ ppts | H1 2023 | H1 2024 | YoY Δ ppts |
|
|
GPM | 26.1% | 11.5% | -14.6 | 23.5% | 12.8% | -10.7 |
|
|
%SG&A/revenue | 17.8% | 7.6% | -10.2 | 16% | 8.7% | -7.6 |
|
|
OPM | 8.2% | 3.9% | -4.3 | 7.2% | 4.1% | -3.1 |
|
|
%Effective tax rate | -18.5% | -19.1% | -0.5 | -19.4% | -18.5% | +0.9 |
|
|
NPM | 9.7% | 3.4% | -6.2 | 8.3% | 3.9% | -4.4 |
|
|
Source: TV2, Vietcap
Powered by Froala Editor
