- HDG released Q2 2023 results with revenue of VND564bn (-42% YoY) and NPAT-MI of VND45bn (-88% YoY). We attribute the plunge in NPAT-MI to (1) a 97% YoY decline in gross profit from the real estate segment due to a subdued amount of real estate handovers, (2) a 29% YoY decrease in gross profit from the energy segment due to unfavorable weather conditions for hydropower, and (3) an 82% YoY drop in financial income. 

- HDG’s H1 2023 revenue and NPAT-MI were VND1.5tn (-8% YoY) and VND348bn (-44% YoY), completing 45% and 39% of our full-year forecasts, respectively. These results are broadly in line with our expectations as we anticipate (1) a higher amount of real estate revenue to be booked in H2 2023 and (2) greater rainfall (due to the wet season) and improved wind speeds in H2 2023. Therefore, we foresee insignificant change to our 2023F NPAT-MI forecast, pending a fuller review. 

- H1 2023 revenue from the real estate segment completed 40% of our full-year projection and was in line with our expectation as HDG plans to launch sales of the Charm Villas - Phase 3 in Q3 2023. However, we foresee slight downside risk to our gross profit forecast for the real estate segment, pending a fuller review, the H1 2023 result completed 25% of our full-year projection.

Powered by Froala Editor