LHG - No IP land sales recognition in Q3, trailing our expectations

- LHG announced Q3 2023 results with revenue of VND67bn (USD2.8mn; -62% YoY) and NPAT-MI of VND29bn (USD1.2mn; -64% YoY but +17% QoQ). The YoY decline was primarily due to no IP land sales recognition in Q3 2023.

- In 9M 2023, LHG’s revenue plunged 52% YoY to VND250bn (USD10mn) while its NPAT-MI fell 38% YoY to VND105bn (USD4.4mn), representing 48% and 50% of our respective full-year forecasts. We see potential downside risk to our 2023F NPAT-MI forecast as 9M 2023 IP land sales handover fulfilled only 25% of our full-year forecast (~1 ha in 9M 2023 vs our full-year projection of ~4 ha).