KBC - Abnormally high sales deduction results in loss in Q4 - Earnings Flash
  • 2023-01-31T00:00:00
  • Company Research

- KBC posted Q4 2022 results with gross revenue of only VND116bn (USD4.8mn; -90% YoY) and a net loss of VND482bn (USD20mn) vs NPAT-MI of VND523bn (USD22mn) in Q4 2021. We attribute the huge loss in Q4 2022 to (1) no industrial park (IP) and urban area (UA) land sales recognition and (2) an abnormal revenue deduction of VND447bn (USD19mn) in Q4 2022 vs no such deductions in Q4 2021. 

- In 2022, KBC recognized IP land sales of 18.8 ha (-77% YoY) and UA land sales of 3.8 ha (-14% YoY), representing 47% and 63% of our full-year forecasts, respectively. 

- In 2022, KBC's gross revenue dropped 67% YoY to VND1.4tn (USD58mn), but the company’s NPAT-MI surged 41% YoY to VND1.55tn (USD65mn). The bottom line was mainly driven by net income from affiliates of VND2.2tn (USD92mn) from the revaluation of invested value in an affiliate that was recorded in Q3 2022 (see more details in our Q3 2022 KBC Earnings Flash, published October 31, 2022).

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