4Q19 PBT +78% YoY; 2020 outlook looks solid

Event

VHM held an Analyst Conference Call today to update the Street on its 4Q2019 results and strategy/outlook for 2020.

Key takeaways

• Robust profitability growth in  4Q19  despite a YoY decline in revenue.
• Solid implantation of new launches in 4Q19.
• Steady bulk sales momentum proving to be a strong driver.
• 3 mega cities remain the bulk of launches planned in 2020.
• Industrial parks as a potential new growth driver.
• Innovating the sales channel and enhancing value-added services.

Our view

Once again, we are impressed by VHM’s successful block sales/land sales to third parties, which reduces our prior concerns related to the overall real estate market’s recent difficulties. We believe that VHM’s impressive scale and quality should allow it to successfully sell out the rest of these 3 mega projects. Also, we see two new potential catalysts: (1) industrial parks as a potential new growth driver and (2) sales channel innovation and enhancing value-added services, which should also enhance VHM’s business outlook.

We maintain our BUY recommendation. VHM has been an outperformer in a decidedly weak market since Tet, but any possible subsequent weakness on coronavirus panic would be an excellent opportunity to load up on the stock.

For the complete report, please access here: VHM_Analyst Meeting_Key Takeaways

Analyst: Tam Nguyen, tam.nguyen@yuanta.com.vn