NKG reported strong Q1 2021 results with revenue up 98% YoY to VND4.9tn (USD211.0mn) and NPAT-MI surging to VND319bn (USD13.9mn) vs VND41bn (USD1.8mn) in Q1 2020. We attribute these expectation-beating earnings mainly to a surge in hot rolled coil (HRC) prices amid rising demand from China. HRC prices are currently double their four-year low recorded in May 2020 and have rallied around 20% since December 2020. This HRC price trend resulted in strong gross margin expansion for galvanized steel