Analyst Pin-board LTG – Plant protection business: challenges in 2022 create growth opportunities for 2023
|
· 1H2022 revenue of the plant protection business (also named LTV) of Loc Troi Group (Upcom: LTG) had a negative growth of -6.6% YoY to VND1,948 bn. In Dec-2021, LTG terminated the partnership with Syngenta (accounting for ~30% of total sales of LTV), dragged down the revenue of LTV in 2022. · To fuel long-term growth of this business without Syngenta, LTG is restructuring its selling policy. Consequently, the Q2/2022 gross margin of the LTV segment went down to 20.6% (-2,890 bps QoQ; -1,450 bps YoY). We expect that LTG will continue extending the new selling policy in 2H2022. As a result, 2022 gross margin of LTV will have a hard time to improve. · We believe that the 2022 performance will reflect all of the negative effect of the termination of the Syngenta partnership. 2023 results are expected to show growth due to 1) 2022 low-base; 2) higher market share thanks to the successful selling strategy; and 3) LTG ‘s agriculture ecosystem. |
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.