- 2024-01-30T00:00:00
- Company Research
- TLG released Q4 2023 revenue that dropped 7% YoY. Q4 2023 recorded NPAT of VND28bn (USD1.1mn) vs a net loss of VND3bn (USD0.1mn) in Q4 2022. We note that Q4 2022 was an abnormally low base because TLG recognized large marketing expenses for 2022 in Q4 2022.
- 2023 revenue and NPAT-MI retreated 2% and 11% YoY, completing 87% and 85% of our forecasts, respectively. We see downside risks to our forecast, pending a more comprehensive review.
- Per TLG, the revenue decline was caused by weaker end-customer demand and slower stockpiling activities by TLG’s distributors. This was the case in both domestic and export markets.
- GPM further normalized QoQ to 42.9% in Q4 2023 as TLG digested its low-cost input plastic inventory.
- 2023 SG&A expenses/revenue hit 31.4%, slightly higher than our projection of 30.4% This number is higher vs the level of 24%-25% in 2015-2019 because TLG is investing heavily in its sales force and marketing.
- TLG opened one new Clever Box store in Vung Tau Province in Q4 2023. This lifted the total Clever Box store count to six.
TLG’s 2023 results
VND bn | Q4 2022 | Q4 2023 | YoY | 2022 | 2023 | YoY | 2023/ 2023F | 2023F |
Net revenue | 741 | 689 | -7% | 3,521 | 3,462 | -2% | 87% | 3,986 |
Domestic | 563 | 527 | -6% | 2,676 | 2,617 | -2% | 86% | 3,055 |
Exports | 178 | 162 | -9% | 845 | 845 | 0% | 91% | 931 |
Gross profit | 296 | 296 | 0% | 1,524 | 1,513 | -1% | 88% | 1,727 |
SG&A expenses | -308 | -264 | -14% | -1,058 | -1,087 | 3% | 90% | -1,212 |
Operating profit | -12 | 32 | -364% | 466 | 425 | -9% | 83% | 515 |
Interest expense | -3 | -3 | 8% | -9 | -18 | 101% | 131% | -14 |
Net other gain/loss | 10 | 10 | -6% | 49 | 45 | -10% | 185% | 24 |
NPAT-MI | -3 | 28 | N.M. | 401 | 356 | -11% | 85% | 420 |
Gross margin % | 40.0% | 42.9% |
| 43.3% | 43.7% |
|
| 43.3% |
SG&A as % sales | 41.6% | 38.3% |
| 30.0% | 31.4% |
|
| 30.4% |
Operating margin % | -1.6% | 4.6% |
| 13.2% | 12.3% |
|
| 12.9% |
NPAT-MI margin % | -0.4% | 4.1% |
| 11.4% | 10.3% |
|
| 10.5% |
Source: TLG, Vietcap forecast
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