TNG – Brief – [Non-rated] – Solid earnings amid tariff uncertainties

In 1Q25, TNG’s revenue posted to VND1,511bn (+11.6% yoy) thanks to the brighter textile & garment (T&G) export orders to key markets. However, 1Q25’s gross margin sat at 15.3%, edging down by 0.6% qoq due to (1) The higher level of labor costs in 2025, and (2) a slight upturn in raw material. SG&A/ revenue also edged up, posting to 8% in 1Q25 due to increase costs of quality control. At the bottom line, 1Q25’s NPAT posed to VND43.3bn (+3.4% yoy).