We attended NKG’s AGM for the 2017 financial year on Saturday, April 8, 2018 in Binh Duong Province. Management’s 2018 guidance of 35% revenue and 6% NPAT growth are in-line with our forecasts as strong volume growth will be deteriorated by lower margin amid tougher competition and adverse input HRC trend. Weak preliminary Q1 2018 results as NPAT plunged 36% vs Q2 2017, mostly driven by gross margin compression from last year’s high base.