NKG reported positive Q1 2020 results with NPAT-MI reaching VND41bn (USD1.8mn) vs a low base of VND102bn (USD4.4mn) of net loss in Q1 2019. The strong recovery in earnings was driven by a sharp expansion of gross margin despite falling total sales volume, which we attribute to NKG benefitting from low-priced hot rolled coil (HRC) accumulation.