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HSG - Margin contraction, interest expense wipe out top-line growth - Earnings Flash

Company Research

31 Oct 2017

HSG published Q4 FY17 results (HSG’s fiscal year ends September 30) with revenue growing 39% vs Q4 FY16 to VND6.9 trillion (USD305.6 million) while NPAT-MI plunged 55% to only VND203 billion (USD9.0 million). The discrepancy between top and bottom lines was caused by a higher-than-expected gross margin (GPM) compression and a surge in interest expense. As Q4 FY17 margins came in weaker than our expectation, leading to HSG’s full FY17 NPAT-MI of VND1.3 trillion (USD58.6 million)

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