Vinhomes (VHM) Q2 2024 earnings summary

Executive summary

• 1H2024 adjusted revenue was VND 47.9tn and PAT VND 11.5tn; contracted sales rose 27% YoY to VND 51.7tn, with unbilled bookings of VND 118.7tn at June-end.

• Lower 1H earnings reflected handover timing against a high 1H2023 base; H1 operating cash flow turned positive at VND 6,474bn, versus an outflow of VND 3,486bn.

Financial highlights

• 1H net revenue was VND 36.429tn, down YoY; adjusted total revenue was VND 47.9tn, down 36%. Q2 net revenue was VND 28,218bn, versus VND 32,614bn a year earlier.

• 1H gross profit was VND 10.089tn, down 49%, with a 28% margin versus 32%; adjusted gross profit including BCC projects and bulk sales was VND 18.3tn.

• 1H operating profit was VND 13.787tn, down 52%; PBT was VND 13.7tn, down 51%; PAT was VND 11.513tn, down 47%, and PATMI was VND 11.7tn, down 46%.

• Q2 PAT rose to VND 10,609bn from VND 9,749bn YoY, while Q2 gross profit fell to VND 8,314bn from VND 13,108bn; finance income increased to VND 8,124bn from VND 2,421bn.

• 1H adjusted revenue and PAT represented 40% and 33% of FY2024 guidance, respectively; the annual revenue target was VND 120tn.

Outlook and guidance

• June-end unbilled bookings of VND 118.7tn were expected to underpin future earnings; 2H revenue was expected to benefit from deliveries at Royal Island and Ocean Park 2–3.

• Two potential bulk-sale transactions totaling ~VND 40tn were nearing finalization, with other discussions ongoing; new mega-project launches and bulk sales were expected to support 2H presales.

• Royal Island, Ocean Park 3, Sky Park and Golden Avenue deliveries, together with bulk-sale recognition, were identified as key 2H earnings contributors.

• Co Loa and Wonder Park were planned for 2H2024 launches; Happy Home social housing launches were expected in 2024, subject to market conditions. No quantified outlook was stated in the financial statements.