- 2024-07-31T00:00:00
- Company Research
- KBC’s H1 2024 revenue and NPAT-MI were VND1.0tn (USD35mn; -77% YoY) and VND151bn (USD6.1mn; -92% YoY), respectively. The earnings decline YoY is mainly due to a significant decrease in IP land handovers to 15 ha in H1 2024 (vs 132 ha in H1 2023 and vs our 2024F forecast of 111 ha) as KBC has a limited amount of readily leasable land, while its upcoming IP projects have yet to launch.
- We foresee potential downside risks to our 2024F forecasts as the land sales progress YTD is slower than our expectations, pending a fuller review.
- In cumulative H1 2024, KBC recorded new land sales of around 17 ha in the Nam Son Hap Linh IP (NSHL), among which are 14 ha from Foxconn and 3 ha from Talway. We estimate the unbilled backlog at end-Q2 2024 to be 39 ha, among which are 33 ha from the NSHL IP and 6 ha from the Quang Chau IP. Additionally, KBC’s remaining leasable IP land among its operating IPs, including the NSHL & Tan Phu Trung IPs, is around 167 ha as of end-Q2 2024.
- For the residential segment, KBC handed over around 16,000 sqm of NSA in the Nenh Town social housing project (Bac Giang, 12.6 ha with 7,000 units in total; presales started in August 2023).
- There have been no new developments in Q2 2024 for KBC’s key residential projects, including the Trang Cat & Phuc Ninh UA. In addition, the Trang Due 3 IP is still awaiting its investment approval from the Prime Minister.
KBC’s H1 2024 results
VND bn | Q2 | Q2 | YoY | H1 | H2 | YoY | 2024F | H1 as % of 2024F |
2023 | 2024 | 2023 | 2024 | |||||
Net revenue | 2,337 | 892 | -62% | 4,551 | 1,044 | -77% | 5,313 | 20% |
- IP | 2,473 | 532 | -79% | 4,541 | 532 | -88% | 4,382 | 12% |
- UA | 9 | 204 | 24x | 29 | 219 | 7.4x | 373 | 59% |
- Others | -145 | 156 | N.M. | -21 | 294 | N.M. | 558 | 53% |
Gross profit | 1,654 | 465 | -72% | 3,199 | 539 | -83% | 3,350 | 16% |
SG&A expenses | -351 | -166 | -53% | -596 | -280 | -53% | -769 | 36% |
EBIT | 1,303 | 299 | -77% | 2,602 | 258 | -90% | 2,582 | 10% |
Financial income | 137 | 109 | -20% | 292 | 177 | -39% | 292 | 61% |
Financial expense | -155 | -55 | -64% | -287 | -110 | -62% | -480 | 23% |
Net income from affiliates | 6 | -5 | N.M. | 1 | -12 | N.M. | 76 | N.M. |
Net other income | 0 | 34 | N.M. | -4 | 31 | N.M. | 0 | N.M. |
PBT | 1,291 | 382 | -70% | 2,605 | 345 | -87% | 2,470 | 14% |
NPAT-MI | 980 | 237 | -76% | 1,921 | 151 | -92% | 1,767 | 9% |
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GPM | 70.8% | 52.1% |
| 70.3% | 51.6% |
| 63.1% |
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- IP | 71.1% | 69.5% |
| 71.0% | 69.5% |
| 65.6% |
|
- UA | 123.8% | 7.1% |
| 60.3% | 9.0% |
| 46.3% |
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OPM | 55.8% | 33.5% |
| 57.2% | 24.8% |
| 48.6% |
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NPM | 41.9% | 26.6% |
| 42.2% | 14.5% |
| 33.3% |
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Source: KBC, Vietcap forecast (last updated May 22, 2024)
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