KDH reported Q4 2022 results with strong net revenue of VND1.2tn (USD52mn; +109% YoY); however, the company’s NPAT-MI declined 71% YoY to VND119bn (USD5.0mn). We attribute the lower YoY NPAT-MI to a significant decline in Q4 2022 gross margin of 24.2% (-39.3 ppts QoQ and -58.0 ppts YoY). We also note that KDH’s Q4 2021 NPAT-MI was supported by a VND199bn (USD8.4mn) non-cash gain from consolidating a land plot owned by Nguyen Thu Real Estate Development JSC. We are seeking the company’s additional disclosure on the main profit contributor to Q4 2022 results as well as updated presales progress.

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