TLG - Robust export momentum; enhanced cost efficiencies - Earnings Flash
  • 2025-01-24T00:00:00
  • Company Research
  • TLG reported 2024 revenue of VND3.8tn (+9% YoY; 97% of our full-year forecast) and NPAT-MI of VND460bn (+29% YoY; 100% of our full-year forecast). We see insignificant changes to our forecast, pending a fuller review.
  • In Q4 2024, revenue was VND847bn (-5% QoQ; +23% YoY) and NPAT-MI was VND39bn (-57% QoQ; +37% YoY). 
  • Export sales: In 2024, export sales reached VND1.0tn (+24% YoY; 101% of our full-year forecast), contributing 27% to total revenue (vs 23% in 2023). Growth was primarily driven by OEM exports - supported by customer restocking, market penetration, and enhanced brand presence strategies. We expect export sales to maintain strong momentum through 2025F, driven by 1) recovering demand in key markets (e.g., the US and SEA), and 2) TLG's ongoing efforts to expand its distribution network and strengthen its brand presence, particularly in ASEAN countries.
  • Domestic sales: In 2024, domestic sales showed a modest recovery, reaching VND2.7tn (+4% YoY; 98% of our full-year forecast). We maintain our outlook for a continued recovery in 2025, supported by distributor restocking and a cautious rebound in consumer spending.
  • GPM slightly narrowed, by 20 bps QoQ to 42.7% in Q4 2024, which we attribute to high-cost plastic inventory accumulated during Q2-Q3 2024. Normally, TLG stocks inventory in advance for four to six months of production. For the full year, however, GPM improved by 90 bps to 44.6%, driven by TLG's efforts to enhance its product mix and improve operational efficiencies. We expect TLG to sustain these efficiencies through 2025F.
  • SG&A: In Q4 2024, SG&A/revenue rose to 38.1% (vs 30.0% in Q3 2024; 38.3% in Q4 2023), following the company’s track record, in line with our expectations. For 2024, SG&A expenses/revenue declined to 30.0% (vs 31.4% in 2023), broadly in-line with our forecast of 30.1%, reflecting TLG’s continued efforts to manage SG&A expenses. We expect the company to sustain these cost management efficiencies through 2025F.

TLG’s 2024 results

VND bn

Q4 
2023

Q3 
2024

Q4 
2024

QoQ

YoY

2023

2024

YoY

2024A/
2024F

2024F

Net revenue

689

896

847

-5%

23%

3,462

3,759

9%

97%

3,863

Domestic

527

659

641

-3%

22%

2,648

2,747

4%

96%

2,862

Exports

162

237

205

-13%

27%

813

1,012

24%

101%

1,000

Gross profit

296

385

361

-6%

22%

1,513

1,675

11%

98%

1,713

SG&A expense

-264

-269

-322

20%

22%

-1,087

-1,127

4%

97%

-1,161

Operating profit

32

116

39

-66%

22%

425

549

29%

99%

553

Interest expense

-3

-4

-4

7%

33%

-18

-13

-25%

101%

-13

Net other gain/loss

-1

-21

4

N.M

N.M

-51

-75

47%

95%

-79

NPAT-MI

28

91

39

-57%

37%

356

460

29%

100%

460

GPM

42.9%

42.9%

42.7%

 

 

43.7%

44.6%

 

 

44.4%

SG&A/revenue

-38.3%

-30.0%

-38.1%

 

 

-31.4%

-30.0%

 

 

-30.1%

OPM

4.6%

12.9%

4.6%

 

 

12.3%

14.6%

 

 

14.3%

NPM

4.1%

10.2%

4.6%

 

 

10.3%

12.2%

 

 

11.9%

Source: TLG, Vietcap forecasts

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