VHM - Q2 contracted sales improve QoQ, driven by retail presales

- VHM announced Q2 2023 NPAT-MI of VND9.7tn (USD409mn; -19% QoQ but +14.5x YoY) thanks to deliveries at Ocean Park 2 and no bulk sales recognition.

- H1 2023 NPAT-MI was VND21.6tn (USD914mn; +4.1x YoY) mainly due to bulk sales recognition in Q1 2023 and scheduled handovers of 5,400 low-rise units at Ocean Park 2. Although VHM’s H1 2023 NPAT-MI completed 70% of our full-year forecast, we foresee insignificant changes to our 2023F NPAT-MI forecast of VND30.7tn (USD1.3bn; +6% YoY), pending a fuller review. We expect H2 2023F earnings to mainly be driven by handovers at Ocean Park 2 and deliveries beginning at Ocean Park 3.

- H1 2023 underlying property sales revenue (including business cooperation contract (BCC) and bulk sales transactions recognized as financial income) was VND70.6tn (USD3.0bn; +5.2x YoY), of which Ocean Park 2 deliveries accounted for 76%.