{"id":45769,"date":"2020-01-20T16:11:04","date_gmt":"2020-01-20T09:11:04","guid":{"rendered":"https:\/\/yuanta.com.vn\/?post_type=phan-tich&#038;p=45769"},"modified":"2020-01-20T16:20:11","modified_gmt":"2020-01-20T09:20:11","slug":"nt2-preliminary-earnings-3-yoy","status":"publish","type":"phan-tich","link":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/nt2-preliminary-earnings-3-yoy","title":{"rendered":"NT2: Preliminary earnings -3% YoY"},"content":{"rendered":"<p><strong>Event <\/strong><\/p>\n<p>POW released its preliminary (unaudited) 4Q2019 and FY2019 financial statements. FY2019 PATMI slid by 2.9% YoY to VND 759 bn, exceeding our forecast by 3%.<\/p>\n<p><strong>Key highlights <\/strong><\/p>\n<p><strong>4Q2019 revenue decreased by 6.2% YoY to VND 1,893 bn<\/strong>. This is despite the sales volume increasing by 3.8% YoY to 1,264 mn kWh, according to POW\u2019s recent operational update. NT2 did not disclose further detail regarding its ASP. 4Q19 gross margin, however, expanded to 15.5% from 12.8% in 4Q18. 4Q19 PATMI decreased by 16.9% YoY to VND 210.8 bn, worse than the revenue decline, partly due to a VND 25.4 bn unrealized FX loss vs a 38.1bn gain in 4Q18.<\/p>\n<p>F<strong>Y2019 PBT decreased by 2.9% YoY to VND 759 bn, exceeding our forecast by 3%.<\/strong> This is mainly attributable to the 0.2% YoY slide in FY2019 revenue to VND 7,653 bn. NT2 did not disclose its sales volume but POW has disclosed that NT2\u2019s sales volume rose by 4.5% YoY to 4,952 mn kWh. FY2019 gross margin contracted 0.5 percentage points to 12.7%.<\/p>\n<p><strong>Significant deleveraging<\/strong>. NT2 has reduced its long-term debt by 68% to VND 492 bn as at 4Q19, in line with our forecast. Net debt\/equity fell to 28.8% at end-2019 from 78.8% at end-2018.<\/p>\n<p><strong>Noise regarding Nhon Trach 2 PPA renegotiation persists<\/strong> but we believe that the market has overreacted to this news. In a recent meeting with parent company POW (which holds 59.4% of NT2), management said they do not expect a big reduction to the current PPA price. Please see our NT2 initiation report for scenario analysis. Another risk is input gas supply, which is a concern that should be resolved by 2021 as GAS (not rated) launches its LNG stations.<\/p>\n<p><strong>Our view <\/strong><\/p>\n<p>We maintain our HOLD-Outperform rating with target price of VND 29,195. NT2 is trading at 1.4x 2020E P\/B with forecast dividend yield of 13.6%.<\/p>\n<p><strong>Please access the link for our complete report:<a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2020\/01\/20200120-NT2-FY2019-1.pdf\">20200120 NT2 FY2019<\/a><\/strong><\/p>\n<p><em>Analyst: Binh Truong, <\/em><em>binh.truong@yuanta.com.vn<\/em><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Event POW released its preliminary (unaudited) 4Q2019 and FY2019 financial statements. FY2019 PATMI slid by 2.9% YoY to VND 759 bn, exceeding our forecast by 3%. Key highlights 4Q2019 revenue decreased by 6.2% YoY to VND 1,893 bn. This is despite the sales volume increasing by 3.8% YoY to 1,264 mn kWh, according to POW\u2019s&#8230;<\/p>\n","protected":false},"author":10,"featured_media":0,"template":"","class_list":["post-45769","phan-tich","type-phan-tich","status-publish","hentry","analysis-category-company-update"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.3 (Yoast SEO v23.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>NT2: Preliminary earnings -3% YoY | Yuanta Vietnam<\/title>\n<meta name=\"description\" content=\"Event POW released its preliminary (unaudited) 4Q2019 and FY2019 financial statements. 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