HSG - Profit turnaround driven by reversion of inventory provision - Earnings Flash

- HSG reported Q2 FY2023 revenue of VND7.0tn (USD295.8mn; -45% YoY & -12% QoQ) and NPAT-MI of VND251bn (USD10.6mn; +7% YoY) vs a net loss of VND680bn (USD28.8mn) in Q1 FY2023. 

- HSG’s profit turnaround in Q2 FY2023 was mainly driven by a VND466bn (USD19.8mn) reversion of inventory provision, which resulted in gross margin expanding to 12.9% in Q2 FY2023 vs 2.0% in Q1 FY2023 and 11.3% in Q2 FY2022. HSG’s provision for inventory outstanding declined to VND186bn (USD7.9mn) as of end-Q2 FY2023 from VND652bn (USD27.6mn) as of end-Q1 FY2023.