- 2024-10-17T00:00:00
- Company Research
- SZC announced its Q3 2024 results with revenue of VND165bn (USD6.6mn; -21% YoY and -37% QoQ) and NPAT-MI of VND60bn (USD2.4mn; +8% YoY and -42% QoQ). Q3 2024 results were mainly driven by scheduled IP land handovers of unbilled backlog (2023 and H1 2024 IP land sales were 67 ha and 30 ha, respectively).
- In 9M 2024, SZC’s revenue increased 15% YoY to VND641bn (USD26mn). For the IP segment, 9M 2024 revenue increased 23% YoY to VND568bn (USD23mn), of which handovers to SNZ and D2D accounted for 30% and 23%, respectively. For the UA segment, 9M 2024 revenue declined 69% YoY to VND17bn (USD0.7mn), mainly due to slower land sales progress. Gross margin increased to 52.1% in 9M 2024 from 46.1% in 9M 2023, which we mainly attribute to an increase in the average selling price in the Chau Duc IP (current quoted price of around USD100/sqm). 9M 2024 NPAT-MI increased 39% YoY to VND227bn (USD9.1mn).
- As of end-Q3 2024, SZC recorded total unearned revenue and advances from customers of VND1.0tn (USD41mn; +51% YTD and +33% QoQ). Notably, advances from customers as of end-Q3 2024 included VND359bn (USD14mn) from Tripod (an 18-ha contract) and VND178bn (USD7mn) from Steel Builder (a 7.5-ha contract).
- Overall, we anticipate no significant changes to our 2024F NPAT-MI forecast of VND303bn (USD12mn; +38% YoY).
SZC’s Q3 2024 results
VND bn | Q3 2023 | Q3 2024 | YoY | 9M 2023 | 9M 2024 | YoY | 2024F | 9M as % of 2024F |
Net revenue | 208 | 165 | -21% | 559 | 641 | 15% | 929 | 69% |
| 171 | 141 | -17% | 460 | 568 | 23% | 780 | 73% |
| 21 | 4 | -82% | 55 | 17 | -69% | 75 | 22% |
| 12 | 14 | 11% | 34 | 40 | 17% | 60 | 67% |
| 4 | 5 | 51% | 10 | 16 | 61% | 14 | 115% |
Gross profit | 86 | 86 | 0% | 258 | 334 | 30% | 464 | 72% |
SG&A expenses | -13 | -19 | 45% | -31 | -42 | 38% | -65 | 65% |
EBIT | 72 | 66 | -8% | 227 | 291 | 28% | 399 | 73% |
Financial income | 6 | 15 | 2.5x | 9 | 19 | 2.1x | 23 | 84% |
Financial expense | -11 | -8 | -23% | -35 | -28 | -19% | -43 | 65% |
Net other income | 0 | 0 | N.M. | 0 | 0 | N.M. | 0 | N.M. |
PBT | 67 | 73 | 9% | 201 | 283 | 40% | 378 | 75% |
NPAT-MI | 55 | 60 | 8% | 163 | 227 | 39% | 303 | 75% |
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GPM | 41.2% | 51.9% |
| 46.1% | 52.1% |
| 50.0% |
|
| 51.0% | 63.6% |
| 53.6% | 59.9% |
| 57.4% |
|
| 78.1% | 71.4% |
| 78.5% | 66.4% |
| 67.8% |
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OPM | 34.8% | 40.3% |
| 40.6% | 45.5% |
| 42.9% |
|
NPM | 26.5% | 36.2% |
| 29.1% | 35.4% |
| 32.6% |
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Source: SZC, Vietcap forecast (Last updated October 7, 2024)
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