SIP – Core segment improvement drives H1 profit growth – Earnings Flash
  • 2024-07-30T00:00:00
  • Company Research
  • SIP released its Q2 2024 results with revenue of VND1.9tn (USD76mn; +6% QoQ and +17% YoY) and NPAT-MI of VND298bn (USD12mn; +21% QoQ and +16% YoY). Bottom-line growth was mainly driven by (1) YoY higher revenue for the utilities segment, (2) GPM improvement for the IP leasing and utilities segments, and (3) an increase in financial income. 
  • H1 2024’s NPAT-MI increased 29% YoY to VND544bn (USD21mn), fulfilling 59% of our full-year forecast. We foresee slight upside potential to our 2024F NPAT-MI forecast due to H1 2024’s higher-than-expected net financial income, pending a fuller review.
  • The IP segment’s revenue in H1 2024 was flat YoY as SIP purely applies the allocation method for revenue recognition of IP land sales. 
  • We estimate that IP cash inflow in H1 2024 was VND785bn (USD31mn; +62% YoY), completing 79% of our full-year forecast. YTD, we estimate that SIP recorded IP land sales of around 30 ha (compared to our 2024F IP land sales of 50 ha), including the 16-ha contract to SLP in the Loc An - Binh Son IP (Dong Nai; 498 ha of total site area).
  • Utilities for the IP segment’s gross profit in H1 2024 increased 19% YoY to VND354bn (USD19mn), fulfilling 53% of our full-year forecast and is broadly in line with our expectation. 
  • Cash and cash equivalents at end-Q2 2024 were VND4.1tn (USD161mn; +7% YTD and -12% QoQ) while loans receivables stood at VND1.5tn (USD59mn; +18% YTD and +10% QoQ).

SIP’s H1 2024 results  

VND bn

Q2

Q2

YoY

H1

H1

YoY

2024F

H1 as % of 2024F

2023

2024

2023

2024

Net revenue

1,663

1,937

17%

3,057

3,763

23%

6,926

54%

        - Industrial park (IP)

100

95

-5%

192

190

-1%

386

49%

        - Utilities for IP

1,505

1,736

15%

2,738

3,352

22%

6,148

55%

        - Residential

0

0

N.M.

0

0

N.M.

74

N.M.

        - Others

58

106

83%

128

222

74%

319

70%

Gross profit

187

244

31%

421

516

23%

1,021

51%

SG&A expenses

-26

-27

4%

-52

-53

2%

-126

42%

EBIT

160

217

35%

369

464

26%

896

52%

Financial income

150

191

28%

246

257

4%

320

80%

Financial expense

51

-18

N.M.

-51

-35

-32%

-92

38%

Net income from affiliates

19

20

3%

39

36

-7%

109

33%

Net other income

-4

2

N.M.

3

6

86%

8

72%

PBT

377

411

9%

606

728

20%

1,240

59%

NPAT-MI

257

298

16%

423

544

29%

915

59%

 

 

 

 

 

 

 


 

GPM

11.2%

12.6%

 

13.8%

13.7%

 

14.7%

 

        - Industrial park (IP)

48.9%

65.7%

 

58.5%

69.0%

 

66.3%

 

       - Utility services for IP

8.8%

9.2%

 

10.9%

10.6%

 

10.9%

 

OPM

9.7%

11.2%

 

12.1%

12.3%

 

12.9%

 

NPM

15.4%

15.4%

 

13.8%

14.5%

 

13.2%

 

Source: SIP, Vietcap forecast (last updated March 15, 2024)

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