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HT1 - Core business weak as expected; FX losses further hit earnings - Earnings Flash

Company Research

21 Jul 2017

HT1 published H1 2017 results, in which revenue grew 3% vs H1 2016 to VND4.05 trillion (USD178.4 million) while NPAT-MI dropped 40% vs H1 2016 to VND224 billion (USD9.9 million). The weak bottom line was caused by 1) low-margin outsourced cement sales and 2) a surge in FX losses as the EUR strengthened against the VND in Q2 2017, making the financing of HT1’s EUR-denominated debt more expensive. Excluding the FX losses, this result is in line with our expectation.

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