Investment thesis

• Vinhomes has largest land bank in Vietnam, which are in strategic locations. Vinhomes is the highest trusted housing brand and has widest profit margin among other developers. Strong financial condition with strong brand name allow VHM to raise capital in both Vietnam and overseas;
• In Q2/2021, VHM’s revenue was 28.7 trillion VND (+75% y-o-y) while gross profit was 14.3 trillion VND (+123% y-o-y). NPAT was 10.3 trillion VND (+202% y-o-y).
• Many projects are already approved by authorities, and ready for development. This becomes the main driver for growth and key point to compete with other competitors in next few years due to current slow license issuance in HCMC;

Risk

• License granting has been not yet improved this year;
• Cyclicity and credit tightening are burden on growth.
• Impact of Covid-19 and new wave of outbreak in May 2021, the presale is continuing to be hit, then the delivery for 2021 could be lower than expected.
• The sale of current 3 mega projects could prolong to 2022 instead of 2021 as before planned.
• Other projects such as Wonder Park, Dream city and Long Beach Can Gio would be delayed if the demand does not recover.

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