Investment Recommendation

X-Stock | HSG 14,300 +14.8%: Riding the Rebound from Valuation Trough

Date

06/05/2026
Security code

HSG
Company

Hoa Sen Group
Expert name

Phạm Quang Minh
Language

Tiếng Anh
Number of Downloads

6

Detailed report

Q2 FY2026 EARNINGS UPDATE – EXPORT MARKET REMAINS CHALLENGING

At the end of Q2 FY2026, HSG recorded revenue of 8,967 billion VND (+6% YoY) and NPAT-MI of 119 billion VND (-43% YoY). Key highlights are as follows:

• Sales volume declined 7% YoY, mainly due to a sharp 34% YoY drop in export volume. Although domestic sales volume increased 10% YoY, supported by the recovery in the real estate market, this was not sufficient to offset weakness in exports.

• Average selling price increased 15% YoY, as higher fuel and transportation costs led HSG to raise selling prices.

• Gross margin declined by 1 percentage point YoY to 11.7%, compared with 12.7% in the same period last year. BSC considers the Q2 gross margin relatively resilient despite continued pressure on export volume.

• Financial income reached 26 billion VND (-78% YoY), mainly due to the high base of FX gains from the high base.

• Interest expenses reached 108 billion VND (+134% YoY), driven by higher interest rates and a 27% YoY increase in inventories.

As a result, HSG’s earnings declined 43% YoY, mainly due to: (1) a 34% YoY decline in export volume; and (2) a 67% YoY increase in financial expenses.

Compared with the previous quarter (Q1 FY2026), revenue increased 7% QoQ and NPAT-MI rose 90% QoQ, mainly driven by:

(1)A 10% QoQ increase in selling prices

(2) HSG’s accumulation of low-cost inventories, which helped improve profitability.

BSC QUICK TAKE (1)

For 6M FY2026, HSG completed 47% of BSC’s full-year revenue forecast and 34% of our full-year earnings forecast.