KBC - 2023 profits below our forecast due to lower-than-expected IP land handovers – Earnings Flash
  • 2024-01-31T00:00:00
  • Company Research
  • KBC released Q4 2023 results with revenue of VND1.1tn (USD45mn) and NPAT-MI of VND75bn (USD3.1mn) vs a VND503bn (USD21mn) net loss in Q4 2022.  
  • KBC’s 2023 NPAT-MI increased 31% YoY to VND2.0tn (USD82mn), representing 91% of our full-year forecast. As such, we anticipate slight downside risk to our 2024F NPAT-MI forecast, pending a fuller review. We continue to expect the launches of the Trang Due 3 IP and Phuc Ninh residential projects to be the main contributors for the 2024F profit forecast.
  • KBC’s IP segment recorded an 8.0x jump in 2023 revenue to VND5.2tn (USD216mn; accounting for 93% of total revenue) because of an increase in IP land sales handovers (~152 ha in 2023 vs our forecast of 162 ha and vs ~19 ha in 2022), mainly to Quang Chau IP and Nam Son Hap Linh IP. KBC recorded signed contracts of ~185 ha in 2023, implying ~33 ha of an end-2023 unbilled backlog that could be recognized in upcoming quarters.
  • KBC’s residential revenue was down 70% YoY in 2023 to VND105bn (USD4.3mn) mainly due to minimal handovers at the Trang Due 3 UA project. KBC is completing legal procedures for the Phuc Ninh and Trang Cat residential projects.

KBC’s 2023 results

VND bn

Q4 

2022

Q4 

2023

YoY

2022

2023

YoY

2023F

2023 as % of 2023F

Net revenue

-338

1,094

N.M.

950

5,645

494%

6,313

89%

Gross profit

-295

488

N.M.

266

3,686

1287%

4,050

91%

SG&A expenses

-187

-229

22%

-510

-825

62%

-852

97%

EBIT

-481

259

N.M.

-245

2,861

-1270%

3,198

89%

Financial income

105

162

54%

340

454

34%

363

125%

Financial expense

-155

-163

6%

-595

-450

-24%

-564

80%

Net income from affiliates

-23

-13

N.M.

2,187

-11

N.M.

34

N.M.

Net other income

-1

16

N.M.

10

11

12%

3

378%

PBT

-555

260

N.M.

1,697

2,865

69%

3,034

94%

NPAT-MI

-503

75

N.M.

1,526

1,996

31%

2,181

91%

 

 

 

 

 

 

 

 

 

GPM

N.M.

44.6%

 

28.0%

65.3%

 

64.2%

 

OPM

N.M.

23.7%

 

-25.7%

50.7%

 

50.7%

 

NPM

N.M.

6.8%

 

160.6%

35.4%

 

34.5%

 

Source: KBC, Vietcap forecast (last updated October 31, 2023)

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