SZC - Steady profit in Q3 from IP land handovers - Earnings Flash
  • 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%

  • IP 

171

141

-17%

460

568

23%

780

73%

  • UA

21

4

-82%

55

17

-69%

75

22%

  • Golf course

12

14

11%

34

40

17%

60

67%

  • Others

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%

 

 

 

 

 

 

 

 

 

GPM

41.2%

51.9%

 

46.1%

52.1%

 

50.0%

 

  • IP 

51.0%

63.6%

 

53.6%

59.9%

 

57.4%

 

  • Residential

78.1%

71.4%

 

78.5%

66.4%

 

67.8%

 

OPM

34.8%

40.3%

 

40.6%

45.5%

 

42.9%

 

NPM

26.5%

36.2%

 

29.1%

35.4%

 

32.6%

 

Source: SZC, Vietcap forecast (Last updated October 7, 2024)

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