KDH – Lower-than-expected profit margin in Q1 – Earnings Flash
  • 2024-05-02T00:00:00
  • Company Research
  • KDH released Q1 2024 results with revenue of VND334bn (USD13mn; -21% YoY) and NPAT-MI of VND63bn (USD2.5mn; -68% YoY). The Classia project (~180 low-rise units; 95% presold & 90% handed over at end-2023) was the main contributor to Q1 2024 revenue and profit. We are currently seeking KDH’s official comments on the lower-than-expected profit margin from handovers at Classia. We foresee potential downside risks to our 2024F NPAT-MI forecast, pending a fuller review. 
  • KDH officially launched The Privia (Binh Tan district, HCMC, a total of ~1,040 high-rise units) in mid-November 2023. KDH presold ~100% of the project by February 2024 and fully topped off all three blocks by January 2024. The Privia is scheduled to start handovers in Q4 2024 and be the main revenue and profit drivers for KDH in 2024. Meanwhile, construction for the 11.8-ha JV project with Keppel (Emeria & Clarita) is on track for its sales launch by end-2024. This is in line with our expectation.

 

KDH’s Q1 2024 results  

VND bn

Q1

2023

Q1

2024

YoY

2024F

Q1 as % of 2024F

Net revenue

425

334

-21%

3,343

10%

Gross profit

332

174

-48%

1,828

10%

SG&A expenses

-69

-56

-18%

-455

12%

EBIT

263

118

-55%

1,373

9%

Financial income

13

12

-6%

47

26%

Financial expense

-1

-21

15.4x

-138

15%

Net other income

12

-7

N.M.

0

N.M.

PBT

287

102

-65%

1,282

8%

Tax expense

-86

-38

-56%

-256

15%

NPAT-MI

200

63

-68%

1,024

6%

 

 

 

 

 

 

GPM

78.0%

52.2%

 

54.7%

 

SG&A as % of revenue

16.1%

16.9%

 

13.6%

 

OPM

61.9%

35.2%

 

41.1%

 

NPM

47.1%

19.0%

 

30.6%

 

Source: KDH, Vietcap forecast (last updated February 22, 2024)

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