- LHG released Q3 2022 results with revenue increasing 242% YoY to VND178bn (USD7.3mn) and NPAT-MI surging 309% YoY to VND83bn (USD3.4mn). We note that Q3 2021 was a relatively low base as LHG did not record any IP land sales revenue. 

- LHG recognized VND119bn (USD5.9mn) of IP land sales revenue in Q3 2022 vs no such revenue in Q3 2021. We note that LHG has not released details in terms of sold area and its average selling price (ASP). 

- Notably, the GPM of IP land sales in Q3 2022 was 58% vs only 18% in Q2 2022 and 28% in H1 2022. We believe GPM in Q3 2022 recovered strongly from the abnormally low GPM in Q2 2022 that was due to recording a nonrecurring upward cost revision for the accumulated leased area of the Long Hau 3.1 (LH3.1) IP in the quarter following the development cost revision approved by shareholders at LHG’s April 2022 AGM.

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