KDH – Ongoing handovers at Classia, sales of undisclosed land plots drive H1 profit – Earnings Flash
  • 2024-07-30T00:00:00
  • Company Research
  • KDH reported H1 2024 revenue of VND978bn (USD38mn; -3% YoY) and NPAT-MI of VND342bn (USD13mn; -24% YoY), which were mainly driven by (1) handovers at Classia (~180 low-rise units; over 95% handed over at end-Q2 2024) and (2) sales of undisclosed land plots.
  • H1 2024 revenue and NPAT-MI completed 27% and 41% of our respective full-year forecasts. We foresee upside potential to our 2024F NPAT-MI forecast of VND829bn (USD33mn; +16% YoY) as H1 2024 sales of undisclosed land plots and the gross margin were higher than our previous expectations, pending a fuller review.
  • For H2 2024F, we continue to expect KDH to (1) start handovers at The Privia (a total of ~1,040 condo units; achieved a 100% presales result with all three blocks fully topped off by January 2024) and (2) to launch presales for its 11.8-ha JV project with Keppel (Emeria & Clarita; the construction for a low-rise portion at this project has been mostly completed).

KDH’s H1 2024 results  

 

VND bn

Q2

2023

Q2

2024

YoY

H1

2023

H1

2024

YoY

2024F

H1 as % of 2024F

Net revenue

587

645

10%

1,008

978

-3%

3,680

27%

Gross profit

494

509

3%

848

683

-19%

1,615

42%

SG&A expenses

-61

-86

42%

-137

-143

4%

-508

28%

EBIT

433

423

-2%

711

541

-24%

1,107

49%

Financial income

8

10

37%

20

23

10%

65

34%

Financial expense

-12

-11

-8%

-19

-33

68%

-134

24%

Net other income

-13

-50

N.M.

-12

-57

N.M.

0

N.M.

PBT

416

371

-11%

700

473

-32%

1,038

46%

Tax expense

-159

-91

-42%

-233

-129

-45%

-208

62%

NPAT-MI

248

278

12%

447

342

-24%

829

41%

 

 

 

 

 

 

 

 

 

Gross margin

84.2%

79.0%

 

84.2%

69.8%

 

43.9%

 

SG&A as % of revenue

10.3%

13.4%

 

13.5%

14.6%

 

13.8%

 

EBIT margin

73.9%

65.6%

 

70.6%

55.2%

 

30.1%

 

NPAT-MI margin

42.3%

43.2%

 

44.4%

34.9%

 

22.5%

 

Source: KDH, Vietcap forecast (last updated May 17, 2024)

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