NT2 – Earnings review – [HOLD] – 1Q26: Profit rebounded strongly

Revenue in 1Q26 reached VND2,172bn (+52% yoy, equivalent to ~90% of KIS’s forecast), driven by (i) a 59% yoy increase in production amid national power consumption growth of 6.5% yoy in 1Q26, despite (ii) an estimated 4.5% yoy decline in the average electricity selling price.

Gross profit recorded VND217bn (+4.9x yoy), with gross margin improving to 10%, up 6.9%p yoy. This significant improvement was mainly attributable to NT2 having fully depreciated its machinery and equipment by 4Q25, resulting in a sharp decline in depreciation expenses (-79% yoy) during 1Q26.

As a result, NPAT reached VND180bn (+4.8x yoy), fulfilling approximately 50% of KIS’s full-year forecast. In terms of growth drivers, NPAT was supported by (i) the improvement in gross margin as mentioned above, and (ii) financial income of VND58bn (+85% yoy, equivalent to an increase of VND27bn), although (iii) SG&A expenses rose to VND34bn (+82% yoy).