BÚT BI THIÊN LONG (HSX: TLG) ĐẠT LỢI NHUẬN KỶ LỤC TRONG QUÝ 2/2024

TLG reported its H1 2024 results with revenue and NPAT-MI increasing 1% and 23% YoY, respectively, achieving 51% and 82% of our respective 2024F full-year forecasts.

- Per management, revenue growth in H1 2024 was mainly driven by export demand. We estimate that exports contributed ~35% to total revenue, compared to 23% in full-year 2023.

- Domestic demand, however, recovered at a slower pace with Q2 2024 domestic revenue sliding 7% YoY, per our estimation. TLG expects stronger restocking from both the domestic and international markets starting mid-2024.

- The GPM widened from 42.5% in Q1 2024 to 48.5% in Q2 2024, driven by plastic recycling and new premium SKUs helping offset increases in the price of plastic.

- SG&A expenses/revenue reached 26.6% in H1 2024, compared to our full-year projection of 30.8%. This number is higher vs the level of 24%-25% in 2015-2019 due to TLG spending heavily on its sales force and marketing. We also note that TLG has a track record of recognizing higher SG&A expenses in the second half of the year as the company ramps up advertisting and marketing activities. H2 2023 SG&A expenses/revenue was 36.9%.

- We expect earnings to continue recovering throughout 2024, driven by improvements in the sales volume and product mix. We foresee potential upside to our forecasts, pending a fuller review.

Vietcap Research

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