NVL announced Q2 2022 results with net revenue of VND2.7tn (USD115.6mn; +36% QoQ and +5% YoY) and NPAT-MI of VND749bn (USD81mn; -31% QoQ and -43% YoY). 

For H1 2022, net revenue was VND4.6tn (USD200.6mn; -35% YoY) mainly thanks to handovers of presold units at NovaWorld Phan Thiet, NovaWorld Ho Tram, NovaHills Mui Ne, Aqua City, Soho Residence and Victoria Village. Gross margin in H1 2022 increased to 40.0% vs 36.5% in H1 2021 and was in line with our full-year forecast of 39.5%; however, EBIT margin (15.3% in H1 2022) trailed our expectation. Financial income surged 33% YoY to VND2.5tn (USD110mn) in H1 2022, supporting H1 2022 NPAT-MI to remain flat YoY at VND1.8tn (USD79.5mn). 

Although H1 2022 NPAT-MI fulfilled 33% of our full-year forecast, we foresee insignificant change to our 2022F NPAT-MI forecast of VND5.6tn (USD243mn; +73% YoY), pending a fuller review. We will participate in NVL’s analyst call on August 5, 2022, to obtain more details on the company’s presales performance.

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