- We maintain our target price for KBC at VND35,200/share but upgrade our rating from OUTPERFORM to BUY as share prices decreased by 23% in the past three months. We believe KBC is a major beneficiary from the structural shift of global manufacturing to Vietnam and has a track record of attracting major tenants such as LG, Foxconn, and Goertek.

- KBC released Q3 2023 results with NPAT-MI of VND14bn (-99% YoY), which is because of no IP land sales handover in the quarter vs a non-cash abnormal gain of VND2.0tn (USD83mn) in Q3 2022. For 9M 2023, KBC recognized 132 ha of IP land sales, of which 50 ha at the Quang Chau IP was handed over to Foxconn and 63 ha at the Nam Son Hap Linh (NSHL) IP was handed over to Goertek. 9M 2023 NPAT-MI was VND1.9tn (USD81mn; -5% YoY). 

- We broadly maintain our 2023F NPAT-MI forecast at VND2.2tn (USD92mn; +45% YoY) as 9M results are in line with our expectations. For Q4 2023F, we expect KBC to handover ~30 ha from the remaining backlog in Quang Chau, NSHL and Tan Phu Trung IPs.

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