{"id":26783,"date":"2019-07-30T18:23:36","date_gmt":"2019-07-30T11:23:36","guid":{"rendered":"https:\/\/yuanta.com.vn\/?post_type=phan-tich&#038;p=26783"},"modified":"2019-07-31T08:17:17","modified_gmt":"2019-07-31T01:17:17","slug":"vhm-boosted-by-block-sales-strategy","status":"publish","type":"phan-tich","link":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/vhm-boosted-by-block-sales-strategy","title":{"rendered":"VHM &#8212; Boosted by block sales strategy"},"content":{"rendered":"<h1><strong>BUY<\/strong><\/h1>\n<p>Current price: VND 84,000<\/p>\n<p><strong>Target price:<\/strong> <strong>94,860 VND<\/strong><\/p>\n<p><strong>Upside:<\/strong><strong> 12.9%<\/strong><\/p>\n<p><strong>Key takeaways <\/strong><\/p>\n<ul>\n<li>Completed of the bulk sales strategy in 2Q2019<\/li>\n<li>Gross margin reached 40% in 1H19 (+11.7pts YoY).<\/li>\n<li>Increasing its effective interest in some projects.<\/li>\n<\/ul>\n<p><strong>VHM reported strong 1H19 preliminary revenue of VND26.8 tn,+72.4% YoY, <\/strong>fulfilled 43.9% of our annual forecast. Gross margin improved and reached 40% in 2Q19. In addition, block sales strategy for 3 mega projects yields good performance results. We believe that these factors confirm our assumptions in <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\">July 4 update<\/a>, as follows:\u00a0 1) Cash flows from the three mega projects have occurred quicker. 2) Higher gross margin assumption and average price estimate applied for 3 mega projects. Therefore, we maintained our BUY rating on VHM.<\/p>\n<p><strong>VHM announced that they have successfully completed the bulk sales strategy in 2Q19. <\/strong>The company has deposit agreements signed for 4 blocks of Vinhomes Smart City (Hanoi), and 10 blocks of Vinhomes Grand Park (HCMC) on the top of purchase agreements of 100% low-rise units of Vinhomes Ocean Park.<\/p>\n<p><strong>2Q19 revenue increased by 309% YoY to VND 20.9 tn,<\/strong> of which VND 15.2 tn revenue is mainly attributable to c.1,700 low-rise units (73.9%) of Vinhomes Ocean Park. The remainders mainly include Green Bay and Metropolis revenue. 1H2019 preliminary revenue of VND26.8 tn (+72.4% YoY) is equivalent to 43.9% of our FY2019 forecast.<\/p>\n<p><strong>Gross margin expanded by 11.7 percentage points to 40% in 1H19 (from 28% in 1H18).<\/strong> The significant increase in gross margin is mainly driven by high margin bulk sales of Vinhomes Ocean Park.<\/p>\n<p><strong>1H19 financial income reduced by 38% YoY to VND5.3 tn <\/strong>in which profit sharing from BCC projects declined by 53% YoY to VND2.7 tn due to the number of handed over units (e.g., Vinhomes The Harmony, Vinhomes Star City and Vinhomes Skylake) is lower than previous period.<\/p>\n<p><strong>Increasing its effective interest in some projects.<\/strong> As Vingroup has transferred 456ha Vinhomes Dream City Hung Yen (formerly Vincity Dream City) so VHM\u2019s current effective interest is 100%. The company also plans to increase its effective interest in Vinhomes Grand Park (expected interest of 90%) and Vinhomes Marina (expected interest of 100%) in 3Q19.<\/p>\n<p>For the complete report, please access here: <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/07\/VHM-Boosted-by-block-sales-strategy-3.pdf\">VHM&#8211;Boosted by block sales strategy<\/a><\/p>\n<p>Analyst: <strong>Tam Nguyen<\/strong>, tam.nguyen@yuanta.com.vn<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BUY Current price: VND 84,000 Target price: 94,860 VND Upside: 12.9% Key takeaways Completed of the bulk sales strategy in 2Q2019 Gross margin reached 40% in 1H19 (+11.7pts YoY). Increasing its effective interest in some projects. VHM reported strong 1H19 preliminary revenue of VND26.8 tn,+72.4% YoY, fulfilled 43.9% of our annual forecast. Gross margin improved&#8230;<\/p>\n","protected":false},"author":10,"featured_media":0,"template":"","class_list":["post-26783","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>VHM -- Boosted by block sales strategy | Yuanta Vietnam<\/title>\n<meta name=\"description\" content=\"BUY Current price: VND 84,000 Target price: 94,860 VND Upside: 12.9% Key takeaways Completed of the bulk sales strategy in 2Q2019 Gross margin reached 40%\" \/>\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=\"VHM -- Boosted by block sales strategy\" \/>\n<meta property=\"og:description\" content=\"BUY Current price: VND 84,000 Target price: 94,860 VND Upside: 12.9% Key takeaways Completed of the bulk sales strategy in 2Q2019 Gross margin reached 40%\" \/>\n<meta property=\"og:url\" content=\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/vhm-boosted-by-block-sales-strategy\" \/>\n<meta property=\"og:site_name\" content=\"Yuanta Vietnam\" \/>\n<meta property=\"article:modified_time\" content=\"2019-07-31T01:17:17+00:00\" \/>\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\/vhm-boosted-by-block-sales-strategy\",\"url\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/vhm-boosted-by-block-sales-strategy\",\"name\":\"VHM -- Boosted by block sales strategy | Yuanta Vietnam\",\"isPartOf\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#website\"},\"datePublished\":\"2019-07-30T11:23:36+00:00\",\"dateModified\":\"2019-07-31T01:17:17+00:00\",\"description\":\"BUY Current price: VND 84,000 Target price: 94,860 VND Upside: 12.9% Key takeaways Completed of the bulk sales strategy in 2Q2019 Gross margin reached 40%\",\"breadcrumb\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/vhm-boosted-by-block-sales-strategy#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/vhm-boosted-by-block-sales-strategy\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/vhm-boosted-by-block-sales-strategy#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\":\"VHM &#8212; 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