- 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 | Q1 | YoY | 2024F | Q1 2024 as % of 2024F |
Net revenue | 235 | 205 | -13% | 5,334 | 4% |
| 175 | 162 | -7% | 5,245 | 3% |
| 60 | 42 | -30% | 89 | 48% |
Gross profit | 160 | 87 | -46% | 2,347 | 4% |
| 167 | 80 | -52% | 2,321 | 3% |
| -8 | 6 | N.M. | 27 | 23% |
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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. |
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Gross margin | 67.9% | 42.3% |
| 44.0% |
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| 95.7% | 49.5% |
| 44.2% |
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| -13.0% | 14.7% |
| 30.0% |
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SG&A as % of revenue | 75.9% | 70.6% |
| 21.5% |
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EBIT margin | N.M. | N.M. |
| 22.5% |
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NPAT-MI margin | 2.9% | N.M. |
| 10.3% |
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Source: NLG, Vietcap forecast (last updated February 6, 2024)
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