Company Quarterly Earnings Update – VHM VN – Q1 2022

Summary of the Q1/2022 results of Vinhomes JSC (VHM VN)

Q1/2022 results: highlights

  • VHM continued to sell and deliver properties at its three main projects including Vinhomes Ocean Park, Vinhomes Smart City and Vinhomes Grand Park. VHM is the leading real estate developer in Vietnam, with continued dominance in Vietnam’s residential market. It boasts a market share of 27% across all apartment segments and 19% for landed property over 2016-2021, much higher the market share of 4% and 6%, respectively for the second largest player (According to VHM and CBRE Vietnam).
  • VHM plans to launch four new projects this year including Vinhomes The Empire, Vinhomes Dai An, Vinhomes Wonder Park and Vinhomes Co Loa. The first two projects are located in Hung Yen (nearby Hanoi) while the latter two are located in Hanoi. In late April, the company initially launched 5,300 low-rise units at Vinhomes The Empire and reported a very high absorption rate. We expect VHM to deliver all of these units and book profit for these sold units in 2022.
  • Due to the booking schedule from existing projects, Q1/2022’s net profit dropped 15.9% y/y to VND4,540bn. However, we expect the company to have stronger earnings in H2/2022 thanks to the contribution from new ventures. By the end of the quarter, VHM maintained a strong balance sheet as its leveraging ratios remained very low with a D/E ratio of 0.11x and a D/A ratio of 0.19x.


  • The company has a strong project pipeline, and we expect VHM’s revenue to grow strongly over the coming years. Recently, the real estate market has been negatively affected by the government’s efforts for stricter control over the development of bond markets. As for VHM, the company can actually benefit from this situation thanks to its strong financial position and low leveraging which will allow the company to acquire market share from other small and weak developers. Therefore, we have no major change to our earnings projections for VHM. We project VHM’s net profit will decline by 10.2% y/y to VND35 trillion in 2022, but rally by 22.2% y/y to 42.8bn in 2023.
  • For 2023: We expect revenue and net profit to grow by 5.9% y/y and 10.8% y/y, respectively, to VND71,605bn and VND12,108bn.


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