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HT1 [O-PF +14.2%] - Weak margin wipes away healthy top line growth -Update

Company Research

16 May 2017

We keep our OUTPERFORM (O-PF) rating for HT1 with TP lowered by 8% to VND22,300 as Q1 2017 gross margin got hit more severely than we expected. Q1 2017 NPAT fell 16.9% vs Q1 2016 to VND109 billion (USD6.8 million) despite 8.8% revenue growth as gross margin continued to squeeze due to increasing outsourced volume to Ha Long grinding station. We maintain 8.7% FY17 revenue growth driven by healthy cement sales growth of 10%.
Tags: HT1

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