NLG announced Q4 2022 results with net revenue decreasing 63% YoY to VND1.6tn (USD69mn). The revenue was mainly contributed by handovers at Southgate (234 units) and Akari City Phase 1 (P1) (91 units). NLG’s NPAT-MI increased 21% YoY to VND437bn (USD19mn), which we attribute to (1) a divestment gain of VND244bn (USD10mn) from transferring a 25% stake in the Paragon project and (2) deliveries of 146 units at the JV project Mizuki Park P2 recorded in profit from associates. 

NLG’s full-year 2022 revenue of VND4.3tn (USD184mn; -17% YoY) fulfilled 87% of our forecast as NLG could not recognize its Can Tho project due to a longer-than-expected delay in land allocation approval. Meanwhile, NPAT-MI of VND556bn (USD24mn; -48% YoY) surpassed 22% of our forecast mainly due to the recognition of the 25% Paragon stake sale and lower-than-expected minority interest. However, we anticipate insignificant change to our 2023F NPAT-MI forecast of VND904bn (USD38mn; +62% YoY), pending a fuller review.