TLG Flash note – NOT RATED

THIEN LONG GROUP CORP (TLG VN)

2024 business results of TLG, the leading listed stationery manufacturer in Vietnam, was highlighted by strong growth in export markets. While the domestic market remains the key earner accounting for 73% of its net revenue, exports – to 74 countries/territories in Asia (55% of export revenue; Southeast Asia is a focal), America (36%), Europe (7%), Africa (1%) and Oceania (1%) – also capture an increasingly significant portion in the overall revenue, growing to 27% in 2024 from 18% in 2020. The company’s AGM was held with some key points as follow.

Net revenue achieved VND3,759bn (+8.6% YoY) and NPATMI surged by 28.5% YoY to VND462bn in 2024. Domestic revenue climbed by 3.7% YoY, whereas overseas revenue soared by 24.5% YoY thanks to strengthening its presence in the existing markets (especially Southeast Asia) and adding three new ones. 

Adverse impacts from the US’s higher tariff policies are likely inevitable, as the US market currently accounts for 9% of TLG’s revenue and 16% of its bottom line. Although the magnitude of influence still depends on negotiation between Vietnam and the US in the upcoming months, the company expects to mitigate the impacts thanks to its capabilities in satisfying the US customers’ strict requirements in terms of product quality, delivery time and customer services.

Looking forward, the company aims to keep expanding export markets, in tandem with sustaining its position in the domestic market, compete with potential penetration of low-priced foreign products (e.g from China) by its advantages of extensive distribution system (including general trade, modern trade, B2B, e-commerce), product quality and innovation, diversified product portfolio, competitive prices, customer services and productivity improvements.

An M&A deal is planned in 2025; however, details are not disclosed. 

2025 business targets are set at VND4,200bn in net revenue, up by 11.7% YoY, and VND450bn in NPATMI, down by 2.5% YoY. The divergence in their growth is explained by investments in consolidating its distribution network, supporting the overseas markets, ESG, digital transformation and Artificial Intelligence.

1Q2025 results have yet been released but were estimated flat YoY, which was better than the company’s plan, despite a decline in 2M2025 as distributors did not stock inventories for the peak season (July and August) as soon as the same period last year. The company expects growth will return in 2Q2025.