KBC – No land handovers lead to loss in Q1; substantial cash increase from customer deposits – Earnings Flash
  • 2024-05-02T00:00:00
  • Company Research
  • KBC released its Q1 2024 results with revenue of VND152bn (USD6.1mn; -93% YoY) and a net loss of VND86bn (USD3.4mn) vs VND941bn (USD38mn) NPAT-MI in Q1 2023. The net loss in Q1 2024 was because of no IP land handovers in the quarter, compared to the 63 ha of IP land handovers in Q1 2023. We anticipate potential downside risks to our 2024F earnings forecasts, pending a fuller review.
  • For IP land sales, year to date, KBC recorded ~10 ha of new IP land sales in the Nam Son Hap Linh IP. The company is still awaiting investment approval for the Trang Due 3 IP, which we expect to be a major sales contributor in 2024F.
  • On the other hand, KBC’s cash flow from operations (CFO) was VND5.1tn (USD207mn) at end-Q1 2024, which was mainly driven by the 5.7tn (USD226mn) deposit from Sai Gon – Ham Tan Tourism Corporation (SHTC). Per KBC, this deposit amount was from the customer deposits for the acquisition of a portion of land in Trang Cat UA.

KBC’s Q1 2024 results 

VND bn

Q1 

2023

Q1 

2024

YoY

2024F

Q1 as % 
 
of 2024F

Net revenue

2,214

152

-93%

7,493

2%

Brokerage  

2,068

0

N.M.

5,570

0%

Property sales 

21

15

-30%

1,363

1%

Others 

124

138

11%

559

25%

Gross profit

1,545

74

-95%

4,337

2%

SG&A expenses

-246

-114

-53%

-1,095

10%

EBIT

1,299

-41

N.M.

3,242

N.M.

Financial income

155

68

-56%

252

27%

Financial expense

-132

-54

-59%

-588

9%

Net income from affiliates

-4

-7

N.M.

76

N.M.

Net other income

-4

-3

N.M.

0

N.M.

PBT

1,314

-36

N.M.

2,983

N.M.

NPAT-MI

941

-86

N.M.

2,134

N.M.

 

 

 

 

 

 

GPM

69.8%

48.5%

 

57.9%

 

Brokerage  

70.9%

N.M.

 

60.7%

 

Property sales 

34.1%

35.0%

 

47.6%

 

OPM

58.7%

-26.6%

 

43.3%

 

NPM

42.5%

-56.3%

 

28.5%

 

Source: KBC, Vietcap forecast (last updated March 6, 2024)

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