- 2024-01-19T00:00:00
- Company Research
LHG announced Q4 2023 results with revenue of VND145bn (USD6.0mn; +40% YoY) and NPAT-MI of VND62bn (USD2.5mn; +93% YoY and +111% QoQ). The encouraging Q4 2023 results were mainly due to the handover of a 1.3 ha land plot at an ASP of around USD245/sqm to Greenwitch Vina to build a food flavoring, additive, and seasoning factory.
In 2023, LHG’s revenue declined 37% YoY to VND395bn (USD16mn) while its NPAT-MI fell 18% YoY to VND166bn (USD6.9mn), representing 76% and 80% of our respective full-year forecasts. The lower-than-expected 2023 results were primarily because of a lower IP land sales handover (2.2 ha; per LHG) vs our forecast of 4.0 ha. We anticipate downside risks to our 2024F IP land sales handover projection of 6.5 ha, pending a fuller review.
For the IP segment, segment revenue declined 64% YoY to VND131n (USD5.4mn) in 2023, mainly due to a 69% lower YoY IP land sales handover. However, the segment GPM in 2023 jumped 22.8 ppts to 61.7% as 2022 GPM was an abnormally low-base due to a nonrecurring upward revision of development costs for accumulated leased IP area.
In Q4 2023, per LHG, the company signed a leasing contract with Orifood Trading & Import Company for an around 1-ha land plot at an ASP of USD250/sqm, which we anticipate could be handed over in 2024F.
LHG’s 2023 results
VND bn | Q4 | Q4 | YoY | 2022 | 2023 | YoY | 2023F | 2023 as % of 2023F |
Net revenue | 103 | 145 | 40% | 629 | 395 | -37% | 521 | 76% |
IP land sales | 32 | 77 | 140% | 366 | 131 | -64% | 234 | 56% |
RBF & dormitory leasing | 35 | 41 | 20% | 129 | 151 | 17% | 146 | 103% |
Others | 37 | 27 | -27% | 134 | 113 | -15% | 140 | 81% |
Gross profit | 44 | 77 | 75% | 256 | 202 | -21% | 263 | 77% |
SG&A expenses | -20 | -19 | -3% | -60 | -64 | 6% | -52 | 122% |
EBIT | 24 | 58 | 140% | 197 | 138 | -30% | 211 | 66% |
Financial income | 10 | 24 | 129% | 47 | 85 | 83% | 54 | 158% |
Financial expense | -3 | -4 | 27% | -14 | -15 | 12% | -16 | 95% |
Net income from affiliates | 3 | 0 | N.M. | 8 | 0 | N.M. | 10 | N.M. |
Net other income | 5 | 1 | -74% | 17 | 4 | -74% | 2 | 221% |
PBT | 39 | 79 | 103% | 255 | 213 | -16% | 261 | 82% |
NPAT-MI | 32 | 62 | 93% | 204 | 166 | -18% | 209 | 80% |
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GPM | 42.6% | 53.2% |
| 40.8% | 51.1% |
| 50.6% |
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IP land sales | 60.3% | 62.3% |
| 38.9% | 61.7% |
| 60.4% |
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RBF & dormitory leasing | 54.3% | 55.4% |
| 53.8% | 56.6% |
| 53.8% |
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OPM | 23.3% | 39.9% |
| 31.3% | 35.1% |
| 40.6% |
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NPM | 30.9% | 42.5% |
| 32.4% | 42.2% |
| 40.1% |
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Source: LHG, Vietcap forecast (last updated September 27, 2023)
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