DPM- Brief – [NONRATED] – 1Q26: Benefiting from Selling Prices

• In 1Q26, DPM recorded revenue of VND5,623bn (+36.5% YoY). This growth was primarily driven by a sharp increase in selling prices:
  • According to our statistics, average selling prices (ASP) for Urea and NPK products in 1Q26 are estimated to have grown by ~23% YoY and ~22% YoY, respectively, tracking the positive trend of global fertilizer prices.
  • Meanwhile, total fertilizer sales volume reached 438,000 tons (+14% YoY). Specifically: Urea reached 239,000 tons (flat YoY); NPK reached 59,000 tons (+50% YoY); and imported fertilizers reached 140,000 tons (+31% YoY).

In our view, the rapid growth in NPK volume compared to the flat performance of Urea was likely due to dealers increasing their NPK inventories to capitalize on price trends. While Urea prices surged 14% from the beginning of the year to late Feb 2026, NPK prices remained relatively stable during the same period.

• Gross profit grew strongly to VND941bn (+44% YoY), with a gross profit margin (GPM) of 16.7% (+0.8 ppts YoY but -2.8 ppts QoQ). The QoQ margin compression was mainly due to a higher proportion of NPK and imported fertilizers in the sales mix—both of which have significantly lower margins than Urea—rather than changes in input gas prices. The average input gas price in 1Q26 rose only slightly by 2% to USD10.03/mmBTU.
• NPAT reached VND411bn (+95% YoY or +77% QoQ), primarily driven by gross profit growth, while other expenses and income showed no significant fluctuations.