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ELC - Q4-2023 Result Update: Profit surged on Investment revaluation gain

• A robust 120% year-on-year surge in revenue to VND 523 bn was driven by the delivery of high-value contracts in the Telecommunications and Intelligent transport system (ITS) sectors. This marks the highest quarterly revenue recorded since 2020.
• The provision of VND 27 bn for warranty and doubtful receivables impacted the operating profit, resulting in a 76% QoQ decline to VND 11 bn.
• ELC recognized VND 35 bn in financial revenue from the revaluation of its investment in the Vietnam Computer and Communication Jsc (Vietcom). This followed an increase in ownership to 50.5% and the reclassification of Vietcom as a subsidiary since November 2023. Previously, by the end of Q3/2023, ELC owned 34% of Vietcom, which was an associate company of ELC.
• Due to this extraordinary financial revenue, profit before tax reached VND 45 bn, reflecting an 11% QoQ increase.
• Cumulatively for the year, the revenue reached VND 980 bn, marking a 14% YoY increase, and NPAT-MI amounted to VND 77 bn, showing a whopping 146% YoY growth, equivalent to a basic EPS of VND 937.
• ELC is currently outlining business plans for 2024, anticipating revenue and profit growth from the high levels achieved in 2023. The momentum stems from executing signed contracts totaling VND 500 bn and participating in tenders for ITS and Telecommunications projects with an estimated total tender size of around VND 1,400 bn.