- 2024-07-29T00:00:00
- Company Research
- IDC released its Q2 2024 results with revenue of VND2.1tn (USD84mn; -11% YoY) and NPAT-MI of VND432bn (USD17mn; -19% YoY). The YoY declines are mainly due to lower one-off IP land sales recognition. IP land handovers in the quarter were mainly from Que Vo, Cau Nghin & Huu Thanh IPs. Additionally, IDC has not yet disclosed the progress of its Q2 2024 IP land sales.
- In H1 2024, IDC’s revenue increased 30% YoY to VND4.6tn (USD181mn) while its NPAT-MI surged 65% YoY to VND1.1tn (USD44mn), representing 54% and 60% of our respective full-year forecasts. We expect no significant changes to our 2024F forecasts, pending a fuller review.
- The IP segment’s revenue in H1 2024 was VND2.4tn (USD92mn; +36% YoY; accounting for 51% of IDC’s net revenue), mainly from IP land handovers at the Huu Thanh, Phu My 2, & Que Vo IPs. While the segment’s revenue was broadly in line with our expectations, its H1 2024 GPM exceeded our 2024F projection, which we attribute mainly to higher-than-expected ASP increases.
- We estimate that IP cash inflows in H1 2024 surged 77% YoY to VND2.8tn (USD108mn) and completed 53% of our 2024F forecast, which is mainly due to the substantial unbilled backlog (~118 ha at end-Q1 2024). We expect IP cash inflow to remain strong in upcoming quarters as the large unbilled backlog persists, while IP land sales could pick up.
- The real estate segment’s revenue surged 6.8x YoY to VND369bn (USD14mn) in H1 2024, which was mainly due to the handover of 1.45 ha of commercial land (in the central residential expansion project in Long An) to Aeon. We expect handovers of the remaining 0.73 ha (VND73bn/USD2.9mn) land to Aeon as well as sales launch & handovers at the Bac Chau Giang UA in H2 2024F.
IDC’s H1 2024 results
VND bn | Q2 | Q2 | YoY | H1 | H1 | YoY | 2024F | H1 as % of 2024F |
Net revenue | 2,408 | 2,148 | -11% | 3,554 | 4,616 | 30% | 8,513 | 54% |
- Industrial park (IP) | 1,521 | 1,046 | -31% | 1,728 | 2,354 | 36% | 3,894 | 60% |
- Energy | 698 | 780 | 12% | 1,340 | 1,468 | 10% | 3,053 | 48% |
- Real estate | 25 | 88 | 3.6x | 55 | 369 | 6.8x | 634 | 58% |
- Other services | 165 | 234 | 42% | 432 | 424 | -2% | 932 | 46% |
Gross profit | 892 | 810 | -9% | 1,196 | 1,908 | 60% | 3,139 | 61% |
SG&A expenses | -95 | -91 | -4% | -162 | -184 | 13% | -418 | 44% |
EBIT | 797 | 719 | -10% | 1,034 | 1,724 | 67% | 2,721 | 63% |
Financial income | 76 | 39 | -48% | 103 | 70 | -32% | 180 | 39% |
Financial expense | -51 | -35 | -31% | -105 | -70 | -33% | -200 | 35% |
Net income from affiliates | 1 | 1 | 53% | 1 | 1 | 64% | 0 | N.M. |
Net other income | 3 | 13 | 4.1x | 8 | 11 | 39% | 13 | 85% |
PBT | 827 | 737 | -11% | 1,040 | 1,737 | 67% | 2,714 | 64% |
NPAT-MI | 534 | 432 | -19% | 681 | 1,128 | 65% | 1,889 | 60% |
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GPM | 37.1% | 37.7% |
| 33.6% | 41.3% |
| 36.9% |
|
- Industrial park (IP) | 50.7% | 59.5% |
| 51.7% | 61.9% |
| 55.2% |
|
- Energy | 7.2% | 4.6% |
| 9.5% | 4.8% |
| 10.1% |
|
- Real estate | 74.9% | 112.1% |
| 65.4% | 73.7% |
| 62.7% |
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OPM | 33.1% | 33.5% |
| 29.1% | 37.4% |
| 32.0% |
|
NPM | 22.2% | 20.1% |
| 19.2% | 24.4% |
| 22.2% |
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Source: IDC, Vietcap forecast (last updated May 9, 2024)
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