Research Center

2Q23 PBT edged up VND6,550bn (+13.2%yoy). Accumulated results, 1H23 PBT rose by 8.0%yoy to VND12,530bn, completing 60% of the 2023 PBT target. 2Q23 credit growth was up 6.6%YTD, higher than 1Q23’s 4.5% and the industry’s 4.7%. 1H2023 NIM was 2.9% (vs 1Q23’s 2.94% and 1H22’s 2.83%) with the higher COF amid the remained high deposit rates for longer terms. 2Q23 NFI rose sharply by 21.5% to VND3,164bn, driven by FX (+45%yoy) and fee incomes (+14%yoy). 2Q23 CIR and 1H2023 remained at 27% (vs 2Q22’s 27%) and 26.0% (vs 1H2022’s 27%). 2Q23 NPL (2-5 group) and NPL (3-5 group) maintained at 3.86% (1Q23’s 3.95% and 2Q22’s 2.59%) and 1.27% (1Q23’s 1.28% and 2Q22’s 1.35%) respectively.

VNM posted a revenue of VND15.2tn (+1.7% yoy) and PAT of VND 2,229bn (+6% yoy) in 2Q23. For 1H23, revenue and PAT were VND29.2tn and VND4,135bn respectively, completed 46% and 48% of the 2023 guidance. The domestic revenue was VND11.4tn in 2Q23, up 3.8% yoy. VNM gained domestic market share in 2Q23 driven by condensed milk, drinking yogurt, and spoon yogurt segments amid weak demand.

2Q23 PBT was up 9.8% yoy (to VND2,022bn) thanks to a strong growth of TOI. 2Q23 high provision expense (+534%yoy) was the key dampening factor to the profit growth. 2Q23 LC and LMC loan (+28.09%YTD, +4.7%qoq) was the driver of the total consumer loan (+13.22%YTD, -0.16%qoq). 2Q23 NIM (TTM) inched down to 4.3% (vs. 4.4% in 1Q23 and 4.1% in 2Q22) due to lower asset yield. NFI went up 85.3%yoy (to VND1,317bn) in 2Q23. The CIR ratio declined from 2Q22’s 38% to 2Q23’s 29%. 2Q23 NPL (2-5 group) and NPL (3-5 group) climbed to 6.0% (vs. 1Q23’s 5.2%) and 2.6% (vs. 1Q23’s 2.0%) respectively.

PVD posted its 2Q23 results with revenue of VND1.4tn (-6.7% yoy) due to lower revenue from well-related services and no revenue from leased rigs. While NPAT-MI turned green to VND161bn in 2Q23 vs a net loss of VND60bn in 2Q22 since PVD’s average jack-up (JU) day rate (USD75,000/day), utilization rate rose strongly yoy and booking a compensation of VND70bn for ending drilling contract with Valeura - Thailand.

2Q23 PBT stayed flat at -1.2%yoy (to VND2,741bn) due to a high provision expense (86%yoy). 2Q23 total credit rose up 9.3% YTD to VND293,129bn, nearly equals to 1Q23’s 9.0% YTD and the 1st credit quota of 10.5%. In 1H2023, HDB focused on lending to the commercial loan rather than retail loan and consumer finance. Consolidated 1Q23 NIM fell slightly to 5.0% (vs 5.1% in 2Q22 and 1Q23). 2Q23 NFI climbed 45%yoy (VND1,337bn). 2Q23 CIR maintained at 35% (vs 2Q22’s 36%). Q23 NPL (2-5 group) and NPL (3-5 group) accelerated to 7.2% (vs. 1Q23’s 5.1%) and 2.2% (vs. 1Q23’s 1.8%) respectively.

Based on our data collected from 26 listed companies in the agriculture sector, revenue rose by 19% yoy to VND27.2tn, mainly contributed by the surging revenue of crop producers by 20% yoy, and 18% yoy in feeding companies. We anticipate the rice export turnover will keep rising on quarterly and yearly basis in 3Q23, base on following catalysts (1) Russia’s exit from Blacksea Grain Initiation (2) El Nino threatens to drag the yield down and (3) India banned non-bastima rice, addition to the ban of 25% broken rice export and 30% tax imposed for non-bastima rice since Sep-2022.

In 2Q23, the growth rate of the firms in the VNINDEX was almost zero, bringing the trailing PE to 14.5x. In the short term, we don’t think the PE level to be attractive for trading activities when (1) the figure has reached the average PE of VNINDEX in the period of 2018-23 and (2) it also points out the current return of VNIndex investment is not more attractive than the deposit savings (the current spread by VNIndex’s E/P and deposit rate is only 0.6%.

Sugar sector got a spotlight, the aggregated sugar revenue growth rate in 2Q23 was 29.1% yoy in 2Q23 compared to 41.2% yoy in 1Q23. Meanwhile, net profit growth rate accelerated to 64.0% yoy in 2Q23 from the growth rate of 31.1% yoy seen in 1Q23. For 3Q23F, we expect the consumption of F&B product could improve slightly in 3Q23. Besides, we expect the gross margins of listed dairy companies to improve continuously qoq in 3Q23F due to enjoying cooling raw material prices.

This quarterly earnings report is a wrapped-up note of listed Vietnamese residential developers based on their financial statements. 1Q23 was awesome but 2Q23 was much more stunning when aggregated revenue/ NPAT of 27 listed housing developers grew splendidly with 104% yoy/18.1% qoq revenue and 163% yoy/ -11.2% qoq net profit . In contrast to tepid 2Q23 when the seasonal marketing campaigns or sales events commenced, we believe the market could welcome numerous activities including the soft launch of NLG, KDH, and PDR.