- 2024-01-31T00:00:00
- Company Research
- IDC released Q4 2023 results with revenue of VND2.2tn (USD92mn; +85% YoY and +55% QoQ) and NPAT-MI of VND551bn (USD29mn; +167% YoY and +242% QoQ). The YoY growth result was mainly due to a higher one-off IP land sales recognition in the quarter.
- In 2023, IDC’s revenue edged down 3% YoY to VND7.2tn (USD298mn) while its NPAT-MI fell 21% YoY to VND1.4tn (USD57mn), completing 110% and 125% of our respective forecasts. We anticipate potential upside to our 2024F NPAT-MI as 2023 earnings were ahead of our expectation, pending a fuller review.
- The IP land sales segment recognized 2023 revenue of VND3.3tn (USD136mn; -1% YoY; accounting for 46% of IDC’s revenue), mainly from the one-off revenue recognition at Huu Thanh IP, Que Vo 2 IP, and Phu My 2 & Phu My 2 expansion IP. The segment’s 2023 revenue was ahead of our expectation which we attribute to higher IP land handovers. The segment’s GPM was 52.3% in 2023, vs 72.2% in 2022 and our forecast of 50.7%. Meanwhile, we estimate total cash inflow from IP land sales in 2023 at VND3.2tn (USD131mn; +31% YoY) and completed 99% of our forecast.
- The energy segment’s revenue was VND2.9tn (USD120mn, +2% YoY) in 2023, fulfilling 104% of our forecast. Additionally, the segment’s GPM was 12.2% in 2023, vs 8.2% in 2022 and our forecast of 10.3%.
- IDC’s IP land sales in Q4 2023 were supported by Hyosung’s USD720mn investment plan to build a biofiber plant at Phu My 2 IP (Ba Ria – Vung Tau Province). We estimate that IDC achieved IP land sales of at least ~150 ha in 2023 (vs our forecast of ~138 ha and 9M 2023 of 122 ha). The company has not yet disclosed its IP land sales in Q4 and 2023.
IDC’s 2023 results
VND bn | Q4 2022 | Q4 2023 | YoY | 2022 | 2023 | YoY | 2023F | 2023 as % of 2023F |
Net revenue | 1,208 | 2,239 | 85% | 7,485 | 7,237 | -3% | 6,580 | 110% |
| 144 | 1,068 | 642% | 3,322 | 3,297 | -1% | 2,832 | 116% |
| 743 | 854 | 15% | 2,878 | 2,924 | 2% | 2,810 | 104% |
| 21 | 29 | 37% | 86 | 103 | 20% | 92 | 111% |
| 300 | 288 | -4% | 1,200 | 913 | -24% | 845 | 108% |
Gross profit | 499 | 821 | 65% | 3,060 | 2,422 | -21% | 2,044 | 118% |
SG&A expenses | -119 | -110 | -8% | -334 | -362 | 8% | -322 | 112% |
EBIT | 380 | 711 | 87% | 2,726 | 2,060 | -24% | 1,722 | 120% |
Financial income | 12 | 89 | 617% | 144 | 221 | 54% | 165 | 134% |
Financial expense | -99 | -41 | -58% | -186 | -189 | 2% | -208 | 91% |
Net income from affiliates | 1 | 1 | -38% | -123 | 1 | N.M. | 0 | N.M. |
Net other income | 4 | -1 | N.M. | 57 | -38 | N.M. | -46 | 83% |
PBT | 298 | 759 | 155% | 2,618 | 2,056 | -21% | 1,633 | 126% |
NPAT | 231 | 623 | 169% | 2,055 | 1,655 | -19% | 1,307 | 127% |
NPAT-MI | 206 | 551 | 167% | 1,768 | 1,393 | -21% | 1,111 | 125% |
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GPM | 41.3% | 36.7% |
| 40.9% | 33.5% |
| 31.1% |
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OPM | 31.4% | 31.8% |
| 36.4% | 28.5% |
| 26.2% |
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NPM | 17.1% | 24.6% |
| 23.6% | 19.2% |
| 16.9% |
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Source: IDC, Vietcap forecast (last updated November 9, 2023)
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