- 2024-11-01T00:00:00
- Company Research
HDG announced its Q3 2024 results with revenue of VND500bn (USD20mn, +13% YoY) and reported NPAT-MI of VND138bn (USD5.5mn, +63% YoY). The revenue expansion was mainly fueled by 18% YoY growth from the energy segment, primarily driven by strong hydropower earnings. Reported NPAT-MI surged relative to revenue, primarily due to (1) strong top-line growth and GPM expansion from hydropower, and (2) lower interest expenses, which outweighed the YoY doubling of G&A expenses.
For 9M 2024, HDG’s revenue was VND2.0tn (USD79mn, -3% YoY) and reported NPAT-MI remained flat YoY at VND423bn (USD17mn), completing 71%/65% of our respective full-year forecasts. We attribute the slight revenue contraction to (1) lower power generation revenue, which slightly outweighed the YoY doubling real estate sales (from the Charm Villa project) and higher revenue from the office leasing & hotel segment. However, the YoY lower financial expenses offset the 8% YoY lower gross profit, resulting in a YoY flat NPAT-MI.
We see downside risk to our 2024F NPAT-MI projection as the delay in Charm Villa Phase 3’s sales launch (previously scheduled for Q3 2024) potentially outweighs slightly better-than-expected hydropower earnings (which we expect to be stronger QoQ in Q4), pending a fuller review.
We currently have a MARKET PERFORM rating for HDG with a target price of VND29,300/share.
HDG’s 9M 2024 results
VND bn | Q3 2023 | Q3 2024 | YoY | 9M 2023 | 9M 2024 | YoY | % of Vietcap’s 2024F |
Revenue | 500 | 567 | 13% | 2,020 | 1,965 | -3% | 71% |
Real estate | -209 | 0 | N.M. | 183 | 399 | 118% | 76% |
Energy | 377 | 445 | 18% | 1,295 | 1,206 | -7% | 67% |
Office leasing & hotel | 106 | 123 | 15% | 304 | 351 | 16% | 76% |
Construction & others | 226 | 0 | -100% | 237 | 8 | -97% | N.M. |
Gross profit | 274 | 336 | 23% | 1,130 | 1,037 | -8% | 65% |
Real estate | -16 | -17 | N.M. | 121 | 132 | 8% | 39% |
Energy | 228 | 309 | 36% | 850 | 755 | -11% | 72% |
Office leasing & hotel | 46 | 44 | -3% | 134 | 150 | 12% | 74% |
Construction & others | 17 | 0 | -100% | 25 | 0 | N.M. | N.M. |
Selling exp | -2 | -2 | -3% | -6 | -4 | -40% | 17% |
G&A | -19 | -42 | 118% | -122 | -127 | 4% | 69% |
Operating profit | 254 | 293 | 16% | 1,002 | 906 | -10% | 65% |
Financial income | 11 | 17 | 59% | 27 | 38 | 40% | 119% |
Financial expenses | -127 | -102 | -20% | -417 | -303 | -27% | 64% |
In which, interest expense | -120 | -93 | -22% | -378 | -269 | -29% | 64% |
Other non-operating income | -27 | -5 | -82% | -8 | 6 | N.M. | N.M. |
PBT | 110 | 203 | 86% | 604 | 647 | 7% | 69% |
- Income tax exp | -10 | -21 | 114% | -70 | -102 | 45% | 82% |
NPAT before MI | 100 | 182 | 83% | 533 | 545 | 2% | 67% |
- Minority interest | -15 | -44 | 193% | -111 | -122 | 10% | 75% |
Reported NPAT-MI | 84 | 138 | 63% | 423 | 423 | 0% | 65% |
Source: HDG, Vietcap
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