CTD reported weak Q3 2021 results with revenue of VND1.1tn (USD46.5mn; -61% YoY) and a net loss of VND12bn (USD0.5mn). CTD’s results were significantly hit by the fourth wave of COVID-19 in Vietnam that disrupted domestic construction activities. In addition, CTD’s gross margin plummeted to 1.6% in Q3 2021 compared to 6.1% in Q3 2020 and 5.3% in Q2 2021 due to 1) COVID-19-related disruptions, 2) high construction material (steel) prices and 3) CTD’s margin being pressured by competition. Moreover, SG&A remaining high caused CTD to record a VND74bn (USD3.2mn) loss at the EBIT level in Q3 2021. Increasing financial income (mostly from interest received) offered some support but not enough for CTD to break even at the PBT level in Q3 2021.

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