- NLG announced Q1 2023 results with net revenue of VND235bn (USD10.0mn; -60% YoY) and NPAT-MI of VND7bn (USD0.3mn; +10.8x YoY), fulfilling 7% and 1% of our respective full-year forecasts.

- NLG’s Q1 2023 total underlying property revenue (including revenue from JV projects) was VND1.5tn (USD63.2mn; +2.7x YoY), which was mainly supported by handovers at Mizuki Park Phase 2 & 3 (413 units) — a JV project recorded in profit from associates — and Southgate (107 Valora units and 27 Ehome units). As this result fulfilled 27% of our full-year 2023 forecast for underlying property revenue, we see no material risk to our revenue forecast, pending a fuller review.

- Q1 2023 blended gross margin increased to 67.9% vs 42.6% in Q1 2022 mainly thanks to the delivery of high-margin Valora units at the Southgate project that more than offset Q1 2023 gross losses from the construction services and leasing segments. However, high SG&A expenses amid weak reported revenue resulted in a Q1 2023 EBIT loss of VND19bn (USD0.8mn) vs Q1 2022 EBIT of VND56bn (USD2.4mn). 

Powered by Froala Editor