Analyst Pin-board LHG – Industrial land sales drive earnings growth in 2022
- 9M 2021, revenue reached VND 718bn (+56% yoy) and NPAT-MI reached VND 270bn (+101% yoy) thanks to positive land sale progress of Long Hau 3-phase1 Industrial Park (LHG-p1 IP). We expect LHG to record NPAT-MI of VND 18bn (-72% yoy) and VND 288bn (+45% yoy) in Q4 and whole year 2021, respectively.
- In 2022, the industrial park (IP) segment continues to be the main growth driver thanks to the growth of rental area and average selling price (ASP). As a result, revenue and NPAT-MI are expected to grow strongly in 2022, estimated at VND 907bn (+17%) and VND 369bn (+28%) respectively. EPS is estimated to be VND 6,928 per share accordingly.
- Long Hau 3 Industrial Park – Phase 2 (LH3-p2 IP) and An Dinh IP are completing legal procedures. We expect the above industrial zones to be ready for lease by 2024.
- Based on the total valuation method (SOTP), we recommend accumulate LHG with an estimated target price of VND62,300 per share, which translate to expected return of 12.9% (compared to the closing price of January 10, 2021). LHG has 2022 forward PE valuation of 7.5, and forward PB valuation at 1.7.
Long Hau Corporation is a Vietnam-based company engaged in the real estate industry. It is involved in the development and construction of infrastructures for industrial zones and residential areas. The Company invests in the development of Long Hau Industrial Zone in Long An Province, as well as provides fresh water and waste water treatment services for plants inside Long Hau Industrial Zone. Other activities include the trading of construction materials, along with the offering of land clearing services, interior decorating services and real estate brokerage services. The Company has four affiliates.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.