VHM announced low H1 2022 results with NPAT-MI of VND5.05tn (USD220mn; -68% YoY) mainly due to project recognition timing for (1) deliveries at Ocean Park, Smart City and Grand Park and (2) scheduled handovers of presold units at the newly-launched project The Empire. 

The Empire (460 ha in Hung Yen) launched presales of 5,300 units for retail buyers at end-April 2022 and has experienced a solid absorption rate (86% were presold as of end-Q2 2022 — equivalent to VND49tn/USD2.1bn of contract value) thanks to its strategic location and strong sales features.

Although VHM’s H1 2022 NPAT-MI result completed just 15% of our full-year forecast, we foresee insignificant changes to our 2022F NPAT-MI forecast of VND34tn (USD1.5bn; -12% vs 2021’s high-base), pending a fuller review. We continue to expect the scheduled deliveries of three current mega projects and the presold low-rise units at The Empire to accelerate in H2 2022.