- QNS released Q1 2023 results with revenue of VND2.1tn (USD91mn; +17% YoY) and NPAT-MI of VND317bn (USD13mn; +80% YoY), completing 24% and 25% of our respective full-year forecasts. As these results are in line with our forecasts, we see no material risk to our current projections, pending a fuller review.

- We attribute the revenue growth in Q1 2023 to the recovery of QNS's sugar business resulting from the positive impact of protective tariffs against the evasion of trade remedies by imported sugar and the Government’s stricter action in controlling smuggled sugar. QNS’s sugar gross profit soared 257% YoY in Q1 2023 as sugar GPM widened 11.2 ppts YoY following a stronger sugarcane yield and higher average selling prices domestically.

- In Q1 2023, soy milk revenue declined 8% YoY due to weak demand as volume slid 9% YoY, per management. However, the company was able to maintain soy milk GPM at 40.1% in Q1 2023.

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