Individual Clients
Corporate Clients
GEG Flash News – N/A
01/11/2024 - 7:00:41 CHGIA LAI ELECTRICTY JST (HoSE: GEG)
GEG reported -4.1% YoY in revenue to VND543 bn in Q3/2024, resulting in NPAT of VND48 bn loss compared to VND315 mil YoY. Cumulative 9M2024, GEG achieved VND80 bn in NPAT, -27.8% YoY. This outcome completed only 29.6% of the 2024 company’s target and 30.4% of ACBS’s forecast. The overall underperformance relative to the previous year is primarily attributed to the Tan Phu Dong 1 project, which is currently being recognized at a provisional price of 50% of the ceiling price, despite COD in May 2023, while other operating costs have escalated.
Q3/2024 revenue decreased by 4.1% YoY, primarily driven by a 4.8% decline in output to 1,012 mil kWh, which was mostly from -13.8% YoY in wind power to 131 mil kWh, despite a 0.7% increase in the average selling price to VND1,508/kWh.
NPAT recorded a loss of VND48 bn, Q3/2023: VND315 mil. This was primarily due to a 12.1% YoY increase in operating costs, which compressed the gross profit margin. Additionally, administrative expenses increased, although finance costs decreased. To illustrate, gross profit -19.1% YoY to VND237 bn, resulting in a gross profit margin of 43.6%, down from 51.8% YoY. Finance costs stood at VND230 bn, -8.7% YoY, with interest expenses accounting for VND224 bn, -5.1% YoY, and lastly administrative expenses increased by 17.9% YoY to VND33 bn.
For 9M2024, output reached 1,012 mil kWh, +16.5% YoY, driven by the commercial operation of the Tan Phu Dong 1 project since May 2023. This contributed to +11.1% YoY in revenue to VND1,770 bn. However, the average selling price decreased by 4.6% YoY to VND1,749/kWh due to the pricing of Tan Phu Dong 1 at 50% of the ceiling price as per Decision No. 21/QD-BCT, resulting in a decline in the gross profit margin to 49% from 54.4% in the same period last year.
Quick conclusion: Given the gray Q3/2024 financial performance, GEG has only achieved 29.6% of its 2024 plan and 30.4% of our forecast. Consequently, we will reassess and update our forecast and valuation for GEG in our upcoming report.
