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CTD - 9M earnings muted due to backlog slowdown, lower margin - Earnings Flash

Company Research

19 Oct 2018

CTD announced 9M 2018 results broadly in line with our full-year forecast. Net revenue rose 14% YoY to reach VND20.7tn (USD900mn) and NPAT-MI stayed flat at VND1.2tn (USD51.8mn). Revenue growth of 6.4% YoY in Q3 2018 started to decelerate vs 19.8% YoY in H1 2018 due to fewer new contracts signed during the period, as we expected. CTD’s end-June backlog stood at VND24tn (USD1bn), down 8% YoY (further details on Q3-ending backlog are not yet available). Although Q3 2018 gross margin of 7.1% was

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