Analyst Pin-board LHG – Value is still there
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· Long Hau 3 phase 1 still has enough leasable area to ensure earning results at least until 2024. Meanwhile, the project of An Dinh Industrial Park and Long Hau 3 Industrial Park Phase 2 delay until end of 2024 – early 2025 due to the impact of the decree 35. · We expect LHG's 3Q2022’s earnings to show a strong recovery compared to the same period last year. Specifically, revenue is estimated at ~VND 208.18 billion (+300.03% YoY), EAT is 78.65 billion dong (+295.35% YoY) and gross profit margin returns to level ~50% compared to 25% in the previous quarter. · Based on the sum-of-the-parts valuation (SOTP), we maintain our BUY recommendation and lower the target price to 52,000/share to (1) adjusting the discount rate to be more reasonable to the context of increasing interest rate pressure, (2) delay An Dinh Industrial Park and Long Hau 3 – phase 2 till 2025, and (3) adjusted the average land leasing price for 2022 to $230/m2 and $240/m2 for the year 2023. Adding an annual cash dividend of VND 1,700 per share, the total expected return will be +104.4% (compared to the closing price of 09/29/2022). |
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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