NKG – Brief – [NONRATED] – 3Q25 – Domestic market supported earnings
- In 3Q25, NKG recorded the revenue of VND3,773bn, -27.3% yoy. Total sales volume reached 195,102 tonnes, -22% yoy. While selling prices were somewhat less favorable than the previous quarter and the same period last year.
- The domestic market remained a key driver for NKG’s revenue and profit, with revenue of VND2,485bn, +48% yoy. The sales volume reached 138,428 tonnes, +50% yoy. The positive trend in domestic market was enhanced by (i) a low interest rate enviroment and (ii) a higher number of real estate projects were licensed in the previous quarters.
- The export market recored VND1,288bn of revenue, -63% yoy and sales volume of 56,674 tonnes, -64% yoy. Notably, the downward trend has continued since due to the effects of excess in the Chinese market, weak demand from the US and EU and a series of US trade protection measures on core steel products (import tax, CVD and AD).
- Gross profit recorded VND180bn, -60% yoy, with gross margin of 4.8%, -3.9%ppt yoy or -2.3%ppt qoq. The decline in GM was attributed to (i) lower operational effiency, (ii) intensifying price competition in domestic market amid export headwinds.
- However, NPAT came in VND50bn, down only 23.6% yoy, supported by the contraction in selling expenses (3Q24: VND283bn, 3Q25: VND83bn,-71% yoy).
Featured Analysis
Derivatives: A buying signal?
Market commentary: Green return
REE – Earnings review – [HOLD] – 3Q25: M&E segment drives solid profit expansion
Derivatives: Bullish Engulfing pattern
Market commentary: Market recovery
HAH – Brief – [NONRATED] – Strong 3Q25, growth to moderate in 4Q25F
Banking – Note – [NEUTRAL] – Right on track
