{"id":24798,"date":"2019-07-04T08:47:48","date_gmt":"2019-07-04T01:47:48","guid":{"rendered":"https:\/\/yuanta.com.vn\/?post_type=phan-tich&#038;p=24798"},"modified":"2019-07-04T08:47:48","modified_gmt":"2019-07-04T01:47:48","slug":"update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns","status":"publish","type":"phan-tich","link":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns","title":{"rendered":"[Update] VHM &#8212; Focusing on mid-end housing and accelerating capital returns"},"content":{"rendered":"<p><strong>Upgrade to BUY<\/strong><\/p>\n<p>Current price: VND 82,000<\/p>\n<p><strong>Target price:<\/strong> <strong>94,860 VND<\/strong><\/p>\n<p><strong>Differential: 15.7%<\/strong><\/p>\n<p><strong>Key catalysts<\/strong><\/p>\n<ul>\n<li>We are positive on the shift into mid-end housing.<\/li>\n<li>Block sales\/land sales strategy also makes sense, in our opinion.<\/li>\n<li>The three mega projects appear to be on schedule.<\/li>\n<\/ul>\n<p><strong>VHM has shifted into mid-end housing, a segment that is backed up by real demand<\/strong> from Vietnam\u2019s expanding middle class. VHM is also taking advantage of its undeniably superior landbank by its strategy of block sales and selling buildable land \u2013 a scarce resource \u2013 to third party developers. This allows VHM to accelerate capital returns and to benefit from the high-end\/luxury segments without incurring undue development risks of its own. Meanwhile, the progress of pipeline projects appears to be on schedule. VHM\u2019s three mega projects should provide a substantial boost to cashflows over the next several years. Despite the strong fundamental story, VHM\u2019s share price has declined 11% since <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/03\/VHM-Initiation-Undisputed-champion-but-fully-valued-2.pdf\">our March initiation<\/a>. We think the stock offers value here, and<strong> we upgrade our recommendation to BUY <\/strong>with 17% expected 12-month total return. <strong>VHM is now our top pick in the property sector<\/strong>.<\/p>\n<p><strong>Mid-end housing: a proxy on middle class growth.<\/strong> VHM has only launched mid-end segment projects since 2H18. We like this strategy given our bullish outlook on the mid-end segment, which is a proxy on the growth of Vietnam\u2019s middle class, vs. our more cautious view on the high-end and luxury segments.<\/p>\n<p><strong>Blocks sales and land transfer strategy<\/strong><strong> is also a positive.<\/strong> VHM\u2019s master planning and investment in facilities is attractive to sub-developers and block buyers. Block sales to real estate brokers and land sales to third-party developers allows VHM to monetize its undeniably superior landbank, accelerating capital returns without taking on undue development risk. VHM expects block sales and land transfers to contribute c. 50% of this year&#8217;s contract sales and 20-30% over the long term.<\/p>\n<p><strong>Mega projects exhibit VHM\u2019s advantages. <\/strong>The three mega projects (i.e., Vinhomes Ocean Park, Smart City, and Grand Park) offer facilities from other Vingroup subsidiaries, increasing their attractiveness to homebuyers. As of May 31, the take-up rate at Ocean Park was 79.6%, with six blocks sold to a local developer. Separately, the take-up rate at Smart City was 72.6% for The Sapphire 1&amp;2 and 100% for Green Villas, while the initial tranche at Grand Park was oversubscribed.<\/p>\n<p><strong>Please access the link for our complete report: <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/07\/Update-VHM-Focusing-on-mid-end-housing-and-accelerating-capital-returns.pdf\">[Update] VHM &#8212; Focusing on mid-end housing and accelerating capital returns<\/a><\/strong><\/p>\n<p><em>Analyst: Tam Nguyen,\u00a0<a href=\"tam.nguyen@yuanta.com.vn\">tam.nguyen@yuanta.com.vn<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Upgrade to BUY Current price: VND 82,000 Target price: 94,860 VND Differential: 15.7% Key catalysts We are positive on the shift into mid-end housing. Block sales\/land sales strategy also makes sense, in our opinion. The three mega projects appear to be on schedule. VHM has shifted into mid-end housing, a segment that is backed up&#8230;<\/p>\n","protected":false},"author":10,"featured_media":0,"template":"","class_list":["post-24798","phan-tich","type-phan-tich","status-publish","hentry","analysis-category-real-estate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.3 (Yoast SEO v23.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>[Update] VHM -- Focusing on mid-end housing and accelerating capital returns | Yuanta Vietnam<\/title>\n<meta name=\"description\" content=\"Upgrade to BUY Current price: VND 82,000 Target price: 94,860 VND Differential: 15.7% Key catalysts We are positive on the shift into mid-end housing.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"[Update] VHM -- Focusing on mid-end housing and accelerating capital returns\" \/>\n<meta property=\"og:description\" content=\"Upgrade to BUY Current price: VND 82,000 Target price: 94,860 VND Differential: 15.7% Key catalysts We are positive on the shift into mid-end housing.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns\" \/>\n<meta property=\"og:site_name\" content=\"Yuanta Vietnam\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns\",\"url\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns\",\"name\":\"[Update] VHM -- Focusing on mid-end housing and accelerating capital returns | Yuanta Vietnam\",\"isPartOf\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#website\"},\"datePublished\":\"2019-07-04T01:47:48+00:00\",\"dateModified\":\"2019-07-04T01:47:48+00:00\",\"description\":\"Upgrade to BUY Current price: VND 82,000 Target price: 94,860 VND Differential: 15.7% Key catalysts We are positive on the shift into mid-end housing.\",\"breadcrumb\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Analysis\",\"item\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"[Update] VHM &#8212; Focusing on mid-end housing and accelerating capital returns\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#website\",\"url\":\"https:\/\/yuanta-uat.ysvn.com.vn\/\",\"name\":\"Yuanta Vietnam\",\"description\":\"Asia&#039;s leading Financial Holding Group and Securities Firm\",\"publisher\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/yuanta-uat.ysvn.com.vn\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#organization\",\"name\":\"Yuanta Vietnam\",\"url\":\"https:\/\/yuanta-uat.ysvn.com.vn\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#\/schema\/logo\/image\/\",\"url\":\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2018\/03\/favicon.png\",\"contentUrl\":\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2018\/03\/favicon.png\",\"width\":33,\"height\":32,\"caption\":\"Yuanta Vietnam\"},\"image\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"[Update] VHM -- Focusing on mid-end housing and accelerating capital returns | Yuanta Vietnam","description":"Upgrade to BUY Current price: VND 82,000 Target price: 94,860 VND Differential: 15.7% Key catalysts We are positive on the shift into mid-end housing.","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"[Update] VHM -- Focusing on mid-end housing and accelerating capital returns","og_description":"Upgrade to BUY Current price: VND 82,000 Target price: 94,860 VND Differential: 15.7% Key catalysts We are positive on the shift into mid-end housing.","og_url":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns","og_site_name":"Yuanta Vietnam","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns","url":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns","name":"[Update] VHM -- Focusing on mid-end housing and accelerating capital returns | Yuanta Vietnam","isPartOf":{"@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#website"},"datePublished":"2019-07-04T01:47:48+00:00","dateModified":"2019-07-04T01:47:48+00:00","description":"Upgrade to BUY Current price: VND 82,000 Target price: 94,860 VND Differential: 15.7% Key catalysts We are positive on the shift into mid-end housing.","breadcrumb":{"@id":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/update-vhm-focusing-on-mid-end-housing-and-accelerating-capital-returns#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/yuanta-uat.ysvn.com.vn\/en"},{"@type":"ListItem","position":2,"name":"Analysis","item":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis"},{"@type":"ListItem","position":3,"name":"[Update] VHM &#8212; Focusing on mid-end housing and accelerating capital returns"}]},{"@type":"WebSite","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#website","url":"https:\/\/yuanta-uat.ysvn.com.vn\/","name":"Yuanta Vietnam","description":"Asia&#039;s leading Financial Holding Group and Securities Firm","publisher":{"@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/yuanta-uat.ysvn.com.vn\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#organization","name":"Yuanta Vietnam","url":"https:\/\/yuanta-uat.ysvn.com.vn\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#\/schema\/logo\/image\/","url":"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2018\/03\/favicon.png","contentUrl":"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2018\/03\/favicon.png","width":33,"height":32,"caption":"Yuanta Vietnam"},"image":{"@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/phan-tich\/24798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/phan-tich"}],"about":[{"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/types\/phan-tich"}],"author":[{"embeddable":true,"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/users\/10"}],"version-history":[{"count":0,"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/phan-tich\/24798\/revisions"}],"wp:attachment":[{"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/media?parent=24798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}