TMG Q3/2026 Profit Jumps 305% as Sulfuric Acid Price Surges 259%

Overview

Kim loại màu Thái Nguyên – Vimico (UPCoM: TMG) reported Q3/2026 net profit of VND 67 billion, up 305.4% year on year, on revenue of VND 443.3 billion. The result was driven by higher selling prices across its main products, most sharply sulfuric acid, which rose 259%. TMG is a 51%-owned subsidiary of Tổng công ty Khoáng sản TKV – CTCP (Vimico, HOSE: KSV), the country’s largest gold mining and processing enterprise.

Key Facts

• Q3/2026 net revenue of VND 443.3 billion, up 69.3% YoY; cost of goods sold rose 47.6% to VND 337.4 billion.
• Gross profit reached nearly VND 106 billion, 3.2x the prior-year period; gross margin widened from 12.7% to 23.9%.
• Pre-tax profit was VND 83.9 billion; net profit was VND 67 billion versus VND 16.5 billion in Q3/2025, a 305.4% increase.
• Selling prices rose 34.2% for zinc ingots, 51.5% for lead concentrate and 259% for sulfuric acid versus the same period last year.
• 9M/2026 revenue reached nearly VND 1,164 billion (+33.5% YoY); pre-tax profit VND 186.3 billion (+186%) and net profit VND 148.8 billion (+187.2%).
• Total financial borrowings fell to VND 43.5 billion from VND 83.4 billion at the start of the year, a decline of nearly 48%.
• Vimico holds 51% of TMG, equivalent to 9.18 million shares; TMG’s charter capital is VND 180 billion.

What Happened

In its Q3/2026 financial statements, released via company disclosure, Kim loại màu Thái Nguyên reported net revenue of VND 443.3 billion, up 69.3% from the same quarter last year. Cost of goods sold rose 47.6% to VND 337.4 billion, a slower pace than revenue, lifting gross profit to nearly VND 106 billion, or 3.2 times the year-earlier figure. Gross margin improved to 23.9% from 12.7%. After expenses, pre-tax profit came in at VND 83.9 billion and net profit at VND 67 billion, against VND 16.5 billion a year earlier.

The company attributed the increase primarily to selling prices. Zinc ingots rose 34.2%, lead concentrate 51.5% and sulfuric acid 259% year on year. For the first nine months of 2026, revenue reached nearly VND 1,164 billion, up 33.5%, with pre-tax profit of VND 186.3 billion and net profit of VND 148.8 billion, up 187.2%. Operating cash flow was VND 194.1 billion, up 62.8%. Total assets stood at VND 769.2 billion at 30 September 2026, up 21.7% since the start of the year, including VND 163.5 billion in cash and equivalents and VND 50 billion in short-term held-to-maturity investments. Inventories rose 121% to VND 138.1 billion from VND 62.4 billion, while liabilities increased to VND 436 billion from VND 340.2 billion, mainly on higher employee payables and tax obligations.

Market Context

TMG trades on UPCOM, Vietnam’s third-tier exchange, and last closed at VND 65,000 on 28 September 2026. Parent Vimico (KSV), listed on HOSE, closed at VND 114,800 on 17 October 2026. Both sit in the basic resources and materials segment, which has benefited through 2026 from firmer base-metal and industrial-chemical prices. TMG’s thin free float and 51% Vimico ownership limit liquidity, so the shares typically react to earnings disclosures with a lag and with wider spreads than HOSE-listed mining peers.

Strategic Significance

The quarter shows operating leverage in a small-cap mineral processor: a 69% revenue increase translated into a fourfold profit increase because unit costs rose far more slowly than selling prices. Sulfuric acid, a by-product of zinc and lead smelting, contributed disproportionately, and its 259% price gain is the least likely of the three to persist, since acid pricing tracks regional industrial demand and smelter supply rather than the company’s own output. The more durable signal is the balance sheet: borrowings nearly halved to VND 43.5 billion while cash and term deposits reached VND 213.5 billion, giving TMG room to fund ore processing without external debt. For KSV holders, TMG is a modest but increasingly cash-generative subsidiary within Vimico’s mineral portfolio.

What to Watch

• Q4/2026 and full-year 2026 results, which will show whether sulfuric acid prices held near Q3 levels.
• Inventory movement from VND 138.1 billion, since a build-up could signal slower offtake or speculative stocking.
• Monthly zinc and lead price benchmarks on the London Metal Exchange and regional sulfuric acid spot quotes.
• Any Vimico (KSV) disclosure on intra-group offtake, dividend policy at TMG, or changes to the 51% stake.
• UPCOM trading liquidity in TMG, given the small free float and the 28 September 2026 reference price of VND 65,000.