IDC released solid Q4 2022 results with revenue increasing 8% YoY to VND1.2tn (USD50mn) and NPAT-MI of VND206bn (USD8.6mn) vs a marginal loss of VND1bn (USD42,000) in Q4 2021. The upbeat profit was mainly thanks to GPM rising 24 ppts YoY to 41% in Q4 2022.

We believe IDC did not recognize one-off IP land sales in Q4 2022 and that IP revenue was purely derived from allocated revenue from unearned revenue as IP revenue rose 15% YoY and plunged 86% QoQ in Q4 2022. We note that IDC also purely used the allocation recognition method for IP revenue in Q4 2021.

In 2022, IDC’s revenue surged 92% YoY to VND8.2tn (USD342mn) and its NPAT-MI jumped 5.1x YoY to VND2.3tn (USD96mn), which were mainly driven by upbeat one-off IP revenue recognition and completed 97% and 101% of our respective full-year forecasts.