IDC - 2023 profits ahead of our expectation – Earnings Flash
  • 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%

  • Industrial parks 

144

1,068

642%

3,322

3,297

-1%

2,832

116%

  • Energy

743

854

15%

2,878

2,924

2%

2,810

104%

  • Real estate

21

29

37%

86

103

20%

92

111%

  • Others

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%

 

 

 

 

 

 

 

 

 

GPM

41.3%

36.7%

 

40.9%

33.5%

 

31.1%

 

OPM

31.4%

31.8%

 

36.4%

28.5%

 

26.2%

 

NPM

17.1%

24.6%

 

23.6%

19.2%

 

16.9%

 

Source: IDC, Vietcap forecast (last updated November 9, 2023)

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