X-Stock | DCM VND53,300 +18%: Q1/2026 Earnings Update — Urea Prices Remain Elevated

EARNINGS UPDATE

Q1/2026 results: Net revenue reached VND5,286bn (+55% YoY, +17% QoQ), while NPAT-MI reached VND788bn (+91% YoY, +102% QoQ).

• Gross margin reached 25.0% (-0.5 ppts YoY, -2.2 ppts QoQ). The slight YoY decline was mainly due to a change in product mix, while gross margins of urea and NPK improved significantly YoY.
• Selling and G&A expenses reached VND531bn (+4% YoY, -38% QoQ). The SG&A/net revenue ratio declined sharply to 10% (-5.0 ppts YoY, -8.8 ppts QoQ), as revenue growth far outpaced expense growth.
• Fertilizer sales volume: (i) urea reached 272,000 tonnes (+10% YoY), with a shift toward the export channel (+73% YoY), while the domestic channel declined (-34% YoY); and (ii) NPK reached 34,000 tonnes (+47% YoY), while self-trading fertilizer volume reached 114,000 tonnes (+233% YoY).

BSC’S ASSESSMENT

Q1/2026 earnings were in line with BSC’s forecast, in which:

(i) Gross margin was slightly lower than our forecast due to a change in product mix: the contribution from the self-trading fertilizer segment, which carries a low margin, increased significantly to 27% of net revenue, while its gross margin narrowed to 4.4% from 8.7% in the same period last year. In contrast, gross margins of core products, namely urea and NPK, recovered impressively, increasing by 9.8 ppts and 1.1 ppts YoY, respectively.

(ii) Urea sales volume strongly exceeded our forecast by 5%, supported by DCM’s flexibility in expanding export markets.

Overall, in Q1/2026, net revenue and NPAT-MI fulfilled 26% and 28% of BSC’s full-year 2026 forecasts, respectively.

Key information to watch

(i) Business outlook and earnings forecasts (details on page 2).

(ii) Domestic fertilizer prices continued to record positive momentum in early May 2026  (details on page 2).