DCM – Brief – [NONRATED] – 4Q25: NPAT surged on higher ASPs and lower input costs

DCM recorded consolidated revenue of VND4,528bn in 4Q25 (+7% yoy), while total sales volume was broadly flat.

• Urea: 4Q25 volume declined slightly by 7% yoy to 209 thousand tonnes. However, ASPs increased sharply by 20% yoy, supported by much higher global urea prices, lifting revenue by 14% to VND2.4tn. Lower input gas costs amid falling oil prices pushed gross profit up 53% yoy to VND1.16tn, the highest level in more than two years.
• NPK: Volume rose 42% yoy to 87 thousand tonnes, while ASPs fell 18% yoy. As a result, revenue increased 17% yoy to VND1.1tn, while gross profit declined 12% yoy to VND95bn.
• Trading fertilizers: Volume decreased 14% yoy to 73 thousand tonnes. GPM remained low at 3.4% but improved by 1.8ppt yoy, resulting in gross profit surging 118% yoy to VND31bn.

Gross profit posted strong growth of 55% yoy, with gross margin expanding to 27.7% (+8.5ppt yoy). In our view, this was mainly driven by the positive impact of lower input gas prices in line with the global oil price downtrend (Figure 7). In detail:

Despite the strong gross profit growth, NPAT in 4Q25 increased only modestly by 4.7% yoy to VND389bn. We believe this reflects the company’s conservative approach, as it recognized higher expenses, with SG&A rising sharply by 66% yoy to VND855bn.

For full-year 2025, DCM’s revenue increased 26% yoy to VND17tn, while total sales volume reached 1.4mn tonnes (+14% yoy). NPAT for 2025 rose 36% yoy to VND1.9tn.