Enterprise

May Hữu Nghị Surpasses Profit Targets Despite Two-Year Low in Gross Margin

Despite facing significant challenges due to adverse U.S. tariff policies, which led to a sharp decline in gross profit margins in Q3, Huu Nghi Garment Corporation (Hugamex, UPCoM: HNI) has successfully surpassed its 2025 profit targets. This achievement is attributed to a substantial increase in financial revenue and the company’s ability to maintain a debt-free status.

Administrator

21 October, 2025

Hugamex’s Quarterly Business Results for 2023-2025

In Q3 2025, Hugamex reported net revenue of nearly VND 233 billion and a net profit of under VND 11 billion, marking a 37% and 34% decline year-over-year, respectively. The gross profit margin hit a two-year low of 11.2%, down from over 14% in the same period in 2024.

The company attributed these declines to the trade policies implemented by U.S. President Donald Trump, which disrupted exports to the U.S. market, impacting both revenue and profit in Q3.

However, financial activities were a bright spot during the period, with financial revenue surging 243% to nearly VND 6.6 billion, while financial expenses plummeted 90% to less than VND 800 million. As of September 2025, Hugamex held nearly VND 352 billion in bank deposits, a slight increase from the beginning of the year, and remained debt-free.

Nine-Month Results Exceed Annual Profit Targets

For the first nine months of the year, Hugamex’s revenue reached over VND 782 billion, a 17% decrease, with a net profit of over VND 36 billion, down 14% year-over-year. Despite this, the company achieved 82% of its annual revenue target and surpassed its profit goal by nearly 13%.

On the UPCoM market, HNI shares have shown low liquidity, trading sideways at VND 26,500 per share for nearly two weeks without any matched orders. Over the past year, the stock has seen a modest 11% increase, with average daily trading volume below 1,700 shares.

HNI Stock Price Performance Over the Past Year

Thế Mạnh

– 09:13 21/10/2025