- 2024-04-17T00:00:00
- Company Research
- SZC announced its Q1 2024 results with revenue increasing 238% YoY to VND214bn (USD8.5mn) and NPAT-MI surging 454% YoY to VND65bn (USD2.6mn) from a low base in Q1 2023, achieving 23% and 21% of our 2024F full-year forecasts, respectively. We attribute the strong Q1 2024 results mainly to the scheduled IP land sales handover to related-party Sonadezi Corporation (UPCoM: SNZ; parent company of SZC). Overall, we anticipate no significant change to our 2024F NPAT-MI forecast as Q1 2024 earnings results were in line with our expectations, pending a fuller review.
- For the IP segment, Q1 2024 revenue jumped 7x YoY to VND194bn (USD7.7mn) mainly due to the sales to SNZ, which accounted for 87% of total IP revenue.
- For the residential segment, Q1 2024 revenue was minimal, which we attribute primarily to the timing in scheduled handovers. We anticipate the units at Huu Phuoc Phase 2 (sales launched in Q4 2023) to start handovers in H2 2024F.
- SZC's total unearned revenue and advances from customers was VND594bn (USD24mn; -13% YoY) as of end-Q1 2024, which we believe represents headroom for the company to recognize IP & UA land sales in the future. In addition, managment stated during 2024 AGM that the company is processing legal procedures with Tripod in order to sign an official contract to lease ~18 ha in the Chau Duc IP to produce high-tech electronics.
SZC’s Q1 2024 results
VND bn | Q1 2023 | Q1 2024 | YoY | 2024F | Q1 2024 as % of 2024F |
Net revenue | 63 | 214 | 238% | 945 | 23% |
| 26 | 194 | 635% | 758 | 26% |
| 22 | 2 | -89% | 113 | 2% |
| 13 | 13 | 1% | 60 | 21% |
| 2 | 5 | 104% | 14 | 34% |
Gross profit | 34 | 99 | 187% | 465 | 21% |
SG&A expenses | -9 | -9 | -2% | -66 | 14% |
EBIT | 25 | 89 | 259% | 398 | 22% |
Financial income | 1 | 3 | 106% | 23 | 13% |
Financial expense | -12 | -9 | -20% | -41 | 23% |
Net other income | 0 | 0 | N.M. | 0 | N.M. |
PBT | 15 | 83 | 467% | 381 | 22% |
NPAT-MI | 12 | 65 | 454% | 304 | 21% |
|
|
|
|
|
|
GPM | 54.3% | 46.1% |
| 49.2% |
|
| 67.8% | 54.9% |
| 56.7% |
|
| 80.0% | 55.3% |
| 67.8% |
|
OPM | 39.3% | 41.8% |
| 42.1% |
|
NPM | 18.6% | 30.5% |
| 32.2% |
|
Source: SZC, Vietcap forecast (last updated March 25, 2024)
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