Analyst Pin-board TNG – Strong earnings growth despite high materials costs in 1H2022
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· In 1H2022, we expect revenue and NPAT to reach VND 3,232 Bn (or USD 140 Mn, +36% YoY) and VND 125 Bn (or USD 5.4 Mn, +50% YoY), driven by: (1) increasing orders from Decathlon, Haddad and Columbia, (2) net margin to improve 50 bps to 4% in 1H2022 despite high material cost due to SG&A cost reduction. · We expect revenue to grow by 19%/11% YoY and NPAT to increase by 22%/23% YoY in FY2022/2023, respectively, driven by: (1) capacity expansion and increasing revenue per garment line; (2) cooling-down of materials costs and optimizing customer base with higher gross margin. · TNG is trading at a trailling P/E of 9.3x, higher than the five-year average P/E of 7.0x but lower than selected peer group average of 11.0x. We will update TNG’s target price later on. |
TNG is engaged in the exploration and evaluation of its Mount Peake project, and Mount Hardy projects; the review of projects for potential acquisition; the management of its other exploration properties and management of its interest such as in the Manbarrum and Cawse Extended Projects.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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