NLG – Q1 loss dragged down by weak property handovers – Earnings Flash
  • 2024-04-26T00:00:00
  • Company Research
  • NLG announced Q1 2024 underlying property revenue (including revenue from the joint-venture Mizuki Park project) of VND348bn (USD14mn; -77% YoY) and a net loss of VND77bn (USD3mn; vs Q1 2023’s NPAT-MI of VND7bn/USD0.3mn). Although we continue to expect H2 2024 to significantly contribute to our full-year NPAT-MI forecast of VND549bn (USD22mn; +13% YoY), we foresee downside risk to our 2024F earnings forecast, pending a fuller review.
  • We attribute the net loss in Q1 2024 mainly to 1) YoY lower handovers at the Mizuki Park project in Q1 2024 (handovers at Mizuki Park contributed VND1.3tn/USD53mn revenue, accounting for 88% of total underlying property revenue in Q1 2023) and 2) YoY lower gross margin in Q1 2024 due to higher proportion of Ehome Southgate (which has lower margin). 
  • Q1 2024 presales were VND1.17tn (USD47mn; +5x YoY but -47% QoQ), mainly supported by the presales at Akari City Phase 2 (contributing 46%), Southgate (24%), and Mizuki Park (21%) – completing 21% of our 2024F presales forecast (VND5.6tn/USD225mn; +47% YoY). Please see updates on the legal status of some projects in our AGM Note. 

NLG’s Q1 2024 results 

VND bn 

Q1  
    2023  

Q1   
  2024  

YoY  

2024F  

Q1 2024 as % of 2024F  

Net revenue 

235

205

-13%

5,334

4%

  • Property sales 

175

162

-7%

5,245

3%

  • Services and leasing 

60

42

-30%

89

48%

Gross profit 

160

87

-46%

2,347

4%

  • Property sales 

167

80

-52%

2,321

3%

  • Services and leasing 

-8

6

N.M.

27

23%

 

 

 

 

 

 

SG&A expenses 

-178

-145

-19%

-1,147

13%

EBIT 

-19

-58

N.M.

1,200

N.M.

Financial income 

46

26

-44%

327

8%

Financial expense 

-77

-51

-34%

-336

15%

Profit from associates 

78

24

-69%

130

19%

Other gain/loss 

6

12

118%

0

N.M.

PBT 

34

-47

N.M.

1,321

N.M.

Effective tax expenses 

-18

-18

1%

-238

8%

NPAT 

16

-65

N.M.

1,083

N.M.

Minority interest 

-9

-12

26%

-534

2%

NPAT-MI 

7

-77

N.M.

549

N.M.

 

 

 

 

 

 

Gross margin 

67.9%

42.3%

 

44.0%

 

  • Property sales 

95.7%

49.5%

 

44.2%

 

  • Services and leasing 

-13.0%

14.7%

 

30.0%

 

SG&A as % of revenue 

75.9%

70.6%

 

21.5%

 

EBIT margin 

N.M.

N.M.

 

22.5%

 

NPAT-MI margin 

2.9%

N.M.

 

10.3%

 

Source: NLG, Vietcap forecast (last updated February 6, 2024)

Powered by Froala Editor