Analyst Pin-board LHG – Industrial land sales drive earnings growth in 2022
- In Q4 2021, LHG's revenue and NPAT-MI reached VND 64bn (-65% yoy) and VND 28bn (-63% yoy) due to LHG recognized zero industrial park (IP) land sale.
- In 2021, LHG recorded revenue and NPAT-MI of VND 782bn (+16% yoy) and VND 295bn (+49% yoy), in line with our forecast. The IP segment brought strong growth to LHG in H1 2021, with IP land sale reaching 12 hectares (+20% yoy) and the rent reaching 200 USD per sqm (+5% yoy).
- In 2022, the IP land demand will the growth of the IP segment, as well as LHG’s revenue and earnings growths in total. As a result, revenue and NPAT-MI are expected to grow strongly in 2022, estimated at VND 907 bn (+17%) and VND 369bn (+28%), which translates to an equivalent EPS of VND 6,928 per share. The current target price of LHG is VND 62,300 per share, and this will be updated in the upcoming report as the IP lease price is rising faster than we expected. Compared to the closing price on Feb 8th 2022, LHG has 2022 forward PE valuation of 7.3, and forward PB valuation at 1.6.
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.
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