CNG – Earnings review – [HOLD] – 1Q26: Sacrificing profit for market expansion

1Q26 revenue reached VND1,192bn (+40% yoy, ~101% of KIS forecast). Gas volume (CNG/LNG/LPG) came in at 90.4mn Sm³ (+42% yoy, 109% of KIS forecast). In particular, revenue from trading activities (LPG/LNG), which carry thinner margins, continued to surge 305% yoy to VND364bn (~95% of KIS forecast).

Gross profit reached VND93bn (+82% yoy, ~119% of KIS forecast), translating into a gross margin of 7.8% (+1.8%p yoy, +1.4%p qoq).

SG&A expenses increased 78% yoy to VND87bn, equivalent to ~95% of KIS forecast. Of which, selling expenses reached VND50bn (+171% yoy). We believe this reflects CNG’s aggressive market expansion strategy to stay ahead of demand trends.

As a result, NPAT remained modest at VND4.4bn (+227% yoy).