- 2024-10-31T00:00:00
- Company Research
- NVL reported Q3 2024 NPAT-MI of VND3.1tn (USD124mn) vs an audited H1 2024 loss of VND7.2tn (USD288mn). The Q3 2024 earnings were mainly driven by 1) VND3.9tn (USD156mn) of financial income, which included interest incomes of VND2.5tn (USD100mn) from investment co-operation contracts with third parties and VND1.06tn (USD42mn) from lending, and 2) handovers, primarily at Novaworld Phan Thiet, Novaworld Ho Tram, Aqua City, and Sunrise Riverside. NVL’s Q3 2024 EBIT was VND86bn (USD3mn) vs quarterly EBIT losses during 2023-H1 2024 due to QoQ higher property handovers.
- In 9M 2024, NVL reported a net loss of VND4.1tn (USD161mn; vs 9M 2023’s net loss of VND841bn/USD34mn), mainly due to provisions and the PAT downward adjustment as mandated by the auditor on a prudent basis in the H1 2024 results (NVL’s unaudited H1 2024 NPAT-MI was VND374bn with VND4.8tn in financial income, vs its H1 2024 audited net loss of VND7.2tn with VND1.4tn in financial income). In addition, per NVL, the amounts of (1) VND2.5tn (USD100mn) in interest income from investment cooperation contracts, part of a 9M 2024 total of VND3.3tn (USD132mn), and (2) VND932bn (USD37mn) in interest income from lending, were previously adjusted downward as mandated in the H1 2024 audited report, but were recorded in Q3 2024 as their collections were finalized in the quarter.
- NVL’s net D/E was 138% at end-Q3 2024 vs 150% at end-Q2 2024 and 120% at end-2023. As of end-Q3 2024, NVL’s total debt balance was VND59.8tn (USD2.4bn; +1.05% QoQ and +3.7% YTD), with corporate bonds amounting to VND38.6tn (USD1.5bn). Total debts set to mature within 12 months were VND37.7tn (USD1.5bn), with corporate bonds amounting to VND23.7tn (USD947mn).
- Our view: We believe NVL’s fundamental progress, including debt restructuring, addressing legal and construction issues, and restoring homebuyer confidence, will require time to resolve. In 2025, we expect NVL to continue focusing on (1) debt restructuring, including negotiations with bondholders to extend maturity/asset swaps, and (2) working on solving legal and construction issues step by step to deliver houses (presold units) to homebuyers.
NVL’s 9M 2024 results
VND bn | Q3 2023 | Q3 2024 | YoY | H1 2024 (audited) | 9M 2023 | 9M 2024 | 9M 2024 YoY |
Net revenue | 1,073 | 2,010 | 87% | 2,285 | 2,731 | 4,295 | 57% |
Gross profit | 342 | 545 | 60% | -2,403 | 819 | -1,858 | N.M. |
Selling expenses | -63 | -104 | 67% | -142 | -143 | -246 | 72% |
G&A expenses | -284 | -355 | 25% | -700 | -1,036 | -1,055 | 2% |
EBIT | -5 | 86 | N.M. | -3,245 | -361 | -3,159 | N.M. |
Financial income | 2,230 | 3,898 | 75% | 1,445 | 3,916 | 5,343 | 36% |
Financial expenses | -1,900 | -319 | -83% | -3,137 | -3,606 | -3,456 | -4% |
| -170 | -83 | -51% | -149 | -529 | -232 | -56% |
Other non-operating income | 158 | -88 | -156% | -1,746 | 152 | -1,834 | N.M. |
Profit (Loss) from associates | 2 | 1 | -47% | 2 | 6 | 3 | -47% |
PBT | 484 | 3,578 | 639% | -6,682 | 108 | -3,104 | N.M. |
PAT | 137 | 2,950 | 2057% | -7,327 | -958 | -4,377 | N.M. |
NPAT-MI | 171 | 3,120 | 1730% | -7,224 | -841 | -4,104 | N.M. |
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Gross margin | 31.8% | 27.1% |
| N.M. | 30.0% | N.M. |
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SG&A as % of revenue | 32.3% | 22.8% |
| 36.9% | 43.2% | 30.3% |
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EBIT margin | N.M. | 4.3% |
| N.M. | N.M. | N.M. |
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NPAT-MI margin | 15.9% | 155.2% |
| N.M. | N.M. | N.M. |
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Source: NVL, Vietcap compilation
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