- 2024-07-18T00:00:00
- Company Research
- SZC announced its Q2 2024 results with revenue of VND262bn (USD10.3mn; -9% YoY and +23% QoQ) and NPAT-MI of VND102bn (USD4.0mn; +7% YoY and +57% QoQ), mainly due to the scheduled IP land sales handovers to related parties, Sonadezi Corporation (UPCoM: SNZ; SNZ held 58% of voting rights in SZC at end-Q1 2024) and Industrial Urban Development JSC No. 2 (HOSE: D2D; SNZ owned a 58% stake in D2D at end-Q1 2024).
- In H1 2024, SZC’s revenue increased 36% YoY to VND476bn (USD19mn), and NPAT-MI was up 55% YoY to VND167bn (USD6.5mn). Gross margin increased to 52.1% in H1 2024 from 49.0% in H1 2023, which we attribute mainly to an increase in the average selling price in the Chau Duc IP (current quoted price of around USD100/sqm).
- Overall, we anticipate slight upside potential to our 2024F NPAT-MI forecast for SZC as H1 2024 IP revenue and GPM were slightly ahead of our expectations, in addition to the large IP backlog to be recognized in upcoming quarters, pending a fuller review.
- For the IP segment, H1 2024 revenue increased 47% YoY to VND427bn (USD17mn), of which handovers to SNZ and D2D accounted for 40% and 31%, respectively.
- For the residential segment, revenue was minimal in H1 2024, which we attribute to slow sales at the Huu Phuoc Phase 2 (sales launched in Q4 2023).
- SZC's total unearned revenue and advances from customers was VND780bn (USD31mn; +14% YTD) as of end-Q2 2024, implying ample room for profit recognition from the IP & UA segments. Notably, the contract from Electronic Tripod to lease ~18 ha in the Chau Duc IP to produce high-tech electronics could be recognized in H2 2024 as SZC recorded VND225bn (USD8.8mn; as of end-Q2 2024) of advances from customers from this contract.
SZC’s H1 2024 results
VND bn | Q2 2023 | Q2 2024 | YoY | H1 2023 | H1 2024 | YoY | 2024F | H1 as % of 2024F |
Net revenue | 288 | 262 | -9% | 351 | 476 | 36% | 945 | 50% |
| 264 | 233 | -12% | 290 | 427 | 47% | 758 | 56% |
| 12 | 11 | -10% | 33 | 13 | -61% | 113 | 11% |
| 9 | 13 | 46% | 22 | 26 | 19% | 60 | 43% |
| -284 | 5 | N.M. | 6 | 10 | 69% | 14 | 74% |
Gross profit | 138 | 150 | 9% | 172 | 248 | 44% | 465 | 53% |
SG&A expenses | -8 | -14 | 70% | -18 | -23 | 31% | -66 | 35% |
EBIT | 130 | 136 | 5% | 154 | 225 | 46% | 398 | 57% |
Financial income | 2 | 1 | -34% | 3 | 4 | 29% | 23 | 18% |
Financial expense | -12 | -10 | -16% | -24 | -20 | -18% | -41 | 48% |
Net income from affiliates | 0 | 0 | N.M. | 0 | 0 | N.M. | 0 | N.M. |
Net other income | 0 | 0 | N.M. | 0 | 0 | N.M. | 0 | N.M. |
PBT | 119 | 126 | 6% | 134 | 209 | 56% | 381 | 55% |
NPAT-MI | 96 | 102 | 7% | 108 | 167 | 55% | 304 | 55% |
|
|
|
|
|
|
|
|
|
GPM | 47.8% | 57.0% |
| 49.0% | 52.1% |
| 49.2% |
|
| 53.9% | 61.8% |
| 55.2% | 58.7% |
| 56.7% |
|
| 76.7% | 67.0% |
| 78.8% | 64.9% |
| 67.8% |
|
OPM | 45.0% | 51.7% |
| 44.0% | 47.2% |
| 42.1% |
|
NPM | 33.3% | 39.0% |
| 30.7% | 35.1% |
| 32.2% |
|
Source: SZC, Vietcap forecast (last updated March 25, 2024)
Powered by Froala Editor