- TLG announced Q2 2022 revenue of VND1.1tn (USD46.7mn; +45% YoY and +37% QoQ) and NPAT-MI of VND186bn (USD8.0mn; +104% YoY and +62% QoQ). 

- We note that Q2 and Q3 normally is TLG’s high season (back-to-school season). Sales of TLG in last year’s back-to-school season were negatively impacted by Vietnam’s fourth wave of COVID-19, which resulted in this year’s strong rebound of sales from a low base. 

- Q2 2022 gross margin inched up to 44.7% compared to 42.5% in Q1 2022 and 43.5% in Q2 2021. Per TLG’s disclosure, gross margin expansion in Q2 2022 continued to be driven by 1) the company continuing to have a low-cost input plastic resin inventory and 2) its continued efforts to push for product categories with higher margins.