SIP – Upbeat earnings growth and IP land sales in 9M 2024 – Earnings Flash
  • 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 
2023 

Q3 
2024 

YoY 

9M 
2023 

9M 
2024 

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 

-1 

N.M. 

57% 

57% 

PBT 

248 

384 

55% 

854 

1,109 

30% 

1,362 

81% 

NPAT-MI 

194 

302 

56% 

617 

847 

37% 

1,005 

84% 

  

  

  

  

  

  

  

 

  

GPM 

12.7% 

15.0% 

  

13.4% 

14.2% 

  

14.7% 

  

     - Industrial park (IP) 

55.1% 

67.1% 

  

57.5% 

68.4% 

  

66.3% 

  

    - Utility services for IP 

10.6% 

11.9% 

  

10.8% 

11.1% 

  

10.9% 

  

OPM 

11.3% 

13.8% 

  

11.8% 

12.8% 

  

12.9% 

  

NPM 

11.4% 

15.3% 

  

12.9% 

14.8% 

  

13.2% 

  

Source: SIP, Vietcap forecast (last updated October 7, 2024)  

 

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