- LHG released Q1 2023 results with revenue edging up 1.2% YoY to VND116bn (USD5mn) and NPAT-MI increasing 4.3% YoY to VND51bn (USD2mn), completing 20% and 22% of our full-year forecasts, respectively. Per LHG, 0.9 ha of IP land sales were recorded in the quarter, with ASP of USD255/sqm (+15% vs 2022’s average).

- Ready-built-factory (RBF) & dormitory leasing increased 22% YoY from the low base in Q1 2022 that was due to COVID-19 but was flat QoQ. We expect RBF revenue to increase further in Q2 2023 thanks to the completion of new RBF projects in the Long Hau (LH) 3.1 IP and Da Nang High-Tech IP.

- Although LHG’s Q1 2023 IP land sales only completed 18% of our full-year forecast, we anticipate land sales and handovers to accelerate in the last three quarters of 2023 as LHG has paid land-use rights fees for another 5.7 ha in the LH3.1 IP (123 ha in total) and fulfilled 88% of the total land-use rights fees required. In addition, we expect an improvement in macroeconomic conditions to start in H2 2023, which should boost land sales progress in the LH3.1 IP. 

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