- 2024-10-30T00:00:00
- Company Research
- SIP released its Q3 2024 results with revenue of VND2.0tn (USD79mn; +2% QoQ and +16% YoY) and NPAT-MI of VND302bn (USD12mn; +1% QoQ and +56% YoY). The bottom-line YoY growth in Q3 2024 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.
In 9M 2024, NPAT-MI increased 37% YoY to VND847bn (USD34mn), fulfilling 84% of our full-year forecast. We foresee upside potential to our 2024F NPAT-MI forecast due to Q3 2024’s higher-than-expected net financial income, as well as for our IP land sales forecasts given the company’s strong 9M 2024 results.
The IP segment’s revenue was up slightly YoY in 9M 2024 as SIP purely applies the allocation method for revenue recognition of IP land sales. We estimate IP cash inflow in 9M 2024 at VND954bn (USD38mn; +81% YoY), completing 91% of our full-year forecast.
In terms of IP land sales, SIP has recorded IP land sales of around 74 ha YTD, among which is 16 ha in the Loc An – Binh Son IP (to SEA Logistics Partners) and 58 ha in the Phuoc Dong IP. This result exceeded our 2024F IP land sales forecast of 30 ha.
The utilities for IPs segment reported 9M 2024 gross profit up 25% YoY to VND572bn (USD23mn), fulfilling 77% of our full-year forecast.
Financial income increased 31% YoY to VND392bn (USD16mn) in 9M 2024, including VND212bn of interest income (USD8.5mn; +14% YoY and accounting for 54% of total financial income) and VND140bn of investment gains (USD5.6mn; +36% YoY; mainly from selling securities).
Cash and cash equivalents at end-Q3 2024 was VND4.7tn (USD188mn; +22% YTD and +9% QoQ) while loans receivables stood at VND1.8tn (USD73mn; +44% YTD and +22% QoQ).
SIP’s 9M 2024 results
VND bn | Q3 | Q3 | YoY | 9M | 9M | YoY | 2024F | 9M as % of 2024F |
Net revenue | 1,705 | 1,977 | 16% | 4,762 | 5,736 | 20% | 7,591 | 76% |
- Industrial park (IP) | 78 | 91 | 16% | 270 | 281 | 4% | 385 | 73% |
- Utilities for IP | 1,521 | 1,738 | 14% | 4,259 | 5,133 | 21% | 6,860 | 75% |
- Others | 105 | 148 | 41% | 233 | 323 | 39% | 346 | 93% |
Gross profit | 217 | 296 | 36% | 638 | 812 | 27% | 1,044 | 78% |
SG&A expenses | -24 | -24 | 0% | -76 | -77 | 1% | -121 | 63% |
EBIT | 193 | 272 | 41% | 562 | 736 | 31% | 922 | 80% |
Financial income | 53 | 135 | 154% | 300 | 392 | 31% | 437 | 90% |
Financial expense | -20 | -40 | 99% | -71 | -75 | 5% | -93 | 81% |
Net income from affiliates | 22 | 18 | -18% | 61 | 52 | -15% | 88 | 59% |
Net other income | 0 | -1 | N.M. | 3 | 4 | 57% | 8 | 57% |
PBT | 248 | 384 | 55% | 854 | 1,109 | 30% | 1,362 | 81% |
NPAT-MI | 194 | 302 | 56% | 617 | 847 | 37% | 1,005 | 84% |
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GPM | 12.7% | 15.0% |
| 13.4% | 14.2% |
| 14.7% |
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- Industrial park (IP) | 55.1% | 67.1% |
| 57.5% | 68.4% |
| 66.3% |
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- Utility services for IP | 10.6% | 11.9% |
| 10.8% | 11.1% |
| 10.9% |
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OPM | 11.3% | 13.8% |
| 11.8% | 12.8% |
| 12.9% |
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NPM | 11.4% | 15.3% |
| 12.9% | 14.8% |
| 13.2% |
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Source: SIP, Vietcap forecast (last updated October 7, 2024)
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