SZC - Net profit jumps 5.5x YoY in Q1 2024, in line with our expectation - Earnings Flash
  • 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%

  • IP  

26

194

635%

758

26%

  • Residential 

22

2

-89%

113

2%

  • Golf course 

13

13

1%

60

21%

  • Others 

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%

 

  • IP  

67.8%

54.9%

 

56.7%

 

  • Residential 

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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