NLG - Weak Q1 2022 profit result due to mix of timing recognition

NLG posted Q1 2022 results with net revenue of VND587bn (USD26mn; +149% YoY), NPAT of VND32.7bn (USD1.4mn) and low NPAT-MI of VND630mn (USD27,000; vs Q1 2021 NPAT-MI of VND365bn/USD16mn). In Q1 2022, NLG handed over ~100 units of Akari City Phase 1 and ~65 units of Southgate. We attribute the weak Q1 2022 NPAT-MI result due to the earnings of Southgate and Akari City Phase 1 being offset by SG&A expenses caused by the launch of Izumi City and other projects. We anticipate insignificant change to our 2022F NPAT-MI forecast of VND1.3tn (USD56mn; +21% YoY), pending a fuller review.