TCM - Focusing on profitability; FOL increase off the table - AGM Note

We attended TCM’s AGM on April 6, 2018 in HCMC. For 2018, management guided for a 1.4% decrease in revenue mainly due to negative growth from its yarn segment as TCM partially phases it out. Management guided recurring NPAT of VND189bn (USD8.3mn), up 13.8% vs 2017 recurring NPAT and 1.6% lower vs 2017 reported NPAT. This guidance is in line with our recurring NPAT forecast of VND191bn (USD8.4mn).