- LHG announced Q2 2023 results with revenue of VND67bn (USD2.8mn; -71% YoY) and NPAT-MI of VND24bn (USD1.0mn; -40% YoY). The top-line decline was due to a lack of IP land sales recognition in Q2 2023 vs VND173bn (USD7.3mn) in Q2 2022.

- In H1 2023, LHG’s revenue plunged 48% YoY to VND182bn (USD7.7mn) while its NPAT-MI fell 16% YoY to VND75bn (USD3.2mn), representing 35% and 34% of our respective full-year forecasts. LHG recognized revenue for ~1 ha of IP land sales in H1 2023 compared to our full-year forecast for 5 ha of IP land sales recognition. Pending a fuller review, we foresee insignificant changes to our 2023F forecasts. We note that LHG had ~7 ha of unbilled backlog remaining at end-2022, implying potential headroom for profit recognition in H2 2023F. 

- In H1 2023, LHG’s IP land sales revenue declined 75% YoY to VND55n (USD2.3mn) — accounting for 30% of total revenue — mainly due to not having any IP land sales recognition in Q2 2023. GPM for the IP segment increased to 62% in H1 2023, representing a strong improvement compared to 28% in H1 2022 and our full-year forecast of 60%.

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