IDC [BUY +54.9%] - Solid IP land sales to fuel strong profit growth outlook

- We reiterate our BUY rating for IDC and maintain our target price (TP) at VND93,200/share.

- Our TP is driven by our more positive forecasts for IDC’s IP land sales in 2022F and 2023F as we raise our respective assumptions by 23% and 14% to 160 ha per year in the period. This upward revision is offset by our 0.5-ppt higher risk-free rate assumption.

- For 2022F, we forecast revenue to jump 79% YoY to VND7.7tn (USD335mn) with NPAT-MI surging 368% YoY to VND2.1tn (USD91mn), which is mainly driven by finalized recognition from the Nhon Trach 5 IP in H1 2022 and YoY higher one-off recognitions for IP land sales.