Vinhomes (VHM) Q3 2023 earnings summary

Executive summary

• 9M2023 adjusted revenue reached VND 108.4tn, up 118% YoY, and adjusted PAT was VND 32.4tn, exceeding FY2023 guidance of VND 100tn revenue and VND 30tn PAT.

• On-schedule low-rise deliveries at Ocean Park 2 and 3 drove reported revenue growth; VND 76.9tn of unbilled bookings supported the outlook, while 9M contracted sales fell 49% YoY to VND 56.7tn against a high prior-year base.

• 9M net profit and revenue rose YoY, but Q3 net profit and EPS declined YoY; operating cash flow also fell from the prior-year period.

Financial highlights

• 9M2023 revenue was VND 94.636tn, up 203% YoY; gross profit rose 129% to VND 34.708tn, with gross margin at 37% versus 49%.

• 9M2023 profit before tax was VND 41.9tn, up 60%; PAT was VND 32.396tn, up 62%; PATMI was VND 32.3tn, up 64%.

• Adjusted 9M2023 revenue was VND 108.4tn, up 118%, and adjusted gross profit was VND 45.0tn, up 55% YoY.

• Q3 revenue rose 84% YoY to VND 32.724tn and gross profit rose 61% to VND 14.957tn; PATMI fell 26% to VND 10.724tn.

• Q3 PBT declined 25% to VND 14.2tn; finance income was VND 1.845tn versus VND 10.922tn, including prior-year investment-sale income of VND 8.918tn.

Outlook and guidance

• 9M adjusted revenue of VND 108.4tn and PAT of VND 32.4tn exceeded FY2023 guidance of VND 100tn and VND 30tn, respectively.

• Unbilled bookings of VND 76.9tn at 30 September 2023 are expected to underpin future earnings despite challenging market conditions.

• Presales are expected to rebound in 2024, supported by launches of pipeline mega projects and improving market sentiment.

• Co Loa, Vu Yen and Wonder Park are in the 2024 launch pipeline; Happy Home social-housing launches are expected in 4Q2023 and 2024.