- HT1 reported Q4 2022 revenue of VND 2.3tn (USD98.1mn; +2% QoQ & +14% YoY) and NPAT-MI of VND58bn (USD2.4mn; +58% QoQ & +6% YoY). Overall, the company’s Q4 2022 results reflect resilient sales and gross margin inching up QoQ to 9.1% vs 8.4% in Q3 2022, which is mostly thanks to HT1 partially destocking high-cost input coal.

- However, HT1’s H2 2022 gross margin of 8.7% was low compared to 11.3% in H1 2022 and 12.3% for full-year 2021 (due to the impact of COVID-19). This low gross margin was due to higher selling prices not being able to catch up with surging input coal prices amid weak demand in H2 2022.

- HT1's full-year 2022 revenue was VND8.9tn (USD377.9mn; +26% YoY) and its NPAT-MI was VND262bn (USD11.1mn; -29% YoY). The discrepancy between full-year 2022 revenue growth and NPAT-MI growth was mainly due to 1) gross margin compression amid high input coal prices and 2) higher SG&A expenses as percentage of sales against a tough competitive landscape. Throughout 2022, Vietnam’s cement industry experienced a large decline in exports (total exported clinker and cement volume declined 31% YoY in 10M 2022) resulting from weaker demand from China, which led to fiercer competition in the domestic market (China accounted for 32% of total exports in 10M 2022).

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