• We attended KDH’s annual general meeting (AGM) on April 23.
• Shareholders approved management’s guidance for 2024G revenue and NPAT-MI of VND3.9tn (USD156mn; +87% YoY) and VND790bn (USD32mn; +10% YoY), which are equivalent to 117% and 77% of our respective forecasts. KDH’s NPAT-MI results in 2021/22/23 completed 100%/79%/72% of their respective guidance set at the beginning of each year. The company does not disclose the breakdown for its 2024G guidance; however, we attribute the lower-than-expected guidance mainly to the lower profit margin for presold units recognized in 2024 (i.e., higher-than-anticipated expenses for selling promotions) compared to our projection.
• Shareholders approved (1) a FY2023 dividend plan of a 10% stock dividend and (2) a FY2024 dividend plan of 10% on par value in cash and/or stock.  
• Shareholders approved an ESOP of 10.8 million shares expected to be issued in 2024 — equal to 1.35% of current O/S or 1.2% of total O/S after the upcoming private placement (the private placement plan was approved in March 2024). The ESOP issue price is expected at a minimum price of VND17,000/share, and the lock-up period for ESOP shares is expected to be one year. In 2020-2023, KDH’s average ESOP issuance was 1.5% of total O/S at the beginning of each year.
• Shareholders approved the dismissal of a member of the supervisory board, Ms. Luu Thi Xuan Lai, and appointment of the newly added board member, Ms. Le Thi Thuy Trang.

 Guidance for launches and handovers of key projects in 2024G. Management stated that in 2024, the company targets to (1) complete construction and handovers at The Privia (Binh Tan District, HCMC, a total of ~1,040 high-rise units, ~100% presold as of February 2024, all three blocks fully topped-off by January 2024), (2) continue construction at the 11.8-ha JV project with Keppel (Emeria & Clarita), expecting for this project to start its sales launch by end-2024 when requirements for the launch are satisfied, and (3) continue the land clearance and legal procedures at its projects in HCMC, in order to prepare for construction and sales launches in coming years. These plans are in line with our expectations.  

KDH expects to retain a strong financial position, supported by upcoming new project launches. In addition to the above-mentioned projects, management expects that KDH could launch the Le Minh Xuan Expansion IP (HCMC; ~110 ha of total site area) in 2025 (in line with our expectation) as the phase 1’s (~90 ha) legal procedures have mostly been completed and KDH recently received notice for the land rental fee payment for phase 1. Meanwhile, the company is in the process of carrying out legal procedures for its upcoming pipelines such as The Solina and Binh Trung Dong. In addition, in March 2024, shareholders approved a private placement plan for 110 million shares (around 13.8% of current O/S) at the expected price of VND27,250/share; KDH plans to use the expected proceeds of VND3.0tn (USD120mn) for the 2024-2025 payments of bank loans at KDH and Khang Phuc (100%-owned subsidiary of KDH, who is the developer of Tan Tao, Phong Phu 2, The Solina, and Le Minh Xuan Expansion IP).

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