TLG reported modest results in Q3 2021 with revenue of VND450bn (USD19.6mn; -45% YoY) and NPAT-MI of VND4bn (USD0.2mn; -97% YoY) due to prolonged school closures amid the fourth wave of COVID-19 in Vietnam. Nevertheless, TLG was able to maintain high gross margin of 36.9% in Q3 2021 despite low sales and rising plastic prices, which we think was due to TLG’s remaining low cost input plastic inventory as well as the declining proportion of thin-margin products in TLG’s product portfolio as stated in our last Update Report, TLG [BUY +26.1%] - Earnings to decline in H2 amid COVID-19 resurgence, dated July 29, 2021.