X-Stock | TNG VND25,500 +21%: Secured Orderbook

Q4/2025 results: Net revenue reached VND2,027bn (+9% YoY), while NPAT-MI reached VND112bn (+49.6% YoY), driven by:

Net revenue increased by 9% YoY, supported by:

• A full orderbook secured early, thanks to: (1) a diversified customer base and lower dependence on the U.S. market compared with other Vietnamese garment exporters; and (2) orders from several newly developed customers such as Walmart, Lidl, Sainsbury, and H&M. Investors may refer to BSC’s previous reports for details.

NPAT-MI increased by 49.6% YoY, supported by:

• Gross margin reached 15.1%, improving slightly by 0.3 ppts YoY, thanks to: (1) a focus on higher value-added product lines to offset tariff and fee-sharing with customers; and (2) several low-ASP orders being shipped earlier in Q2/2025 and Q3/2025 to avoid tariff-related costs.
• SG&A/net revenue stood at 5.4%, down 1.3 ppts YoY, supported by: (1) the application of technology and automation across multiple production stages; and (2) flat selling expenses, as TNG mainly focused on serving its existing customer base.
• Estimated FX loss was VND5bn (-85% YoY).

Overall, Q4/2025 earnings show that the impact of tariff and fee-sharing with customers did not materially affect TNG’s profitability. This was thanks to: (1) market diversification to reduce dependence on the U.S. market, which is estimated to contribute only around 30% of total orders versus 50% in 2024; and (2) lower management expenses through the adoption of technology and automation in production. This is consistent with BSC’s view in previous reports.

For full-year 2025, TNG recorded net revenue and NPAT-MI of VND8,698bn (+12% YoY) and VND392bn (+24% YoY), respectively, completing 105% and 114% of BSC’s forecasts in the latest report. We believe the variance versus BSC’s forecast mainly came from: (1) TNG’s FX loss being 25.7% lower than our estimate; and (2) export orders to Russia being around 5% higher than our estimate.