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IJC [NOT RATED] - Clear residential land in Binh Duong; valuable IP affiliate - Visit Note

Company Research

20 Jan 2025

- Becamex Infrastructure Development JSC (HOSE: IJC) is an experienced infrastructure and residential developer in Binh Duong Province. The majority of its ~56 ha saleable residential land, mostly secured from Becamex IDC (HOSE: BCM) and situated near Binh Duong New City (BDNC; Thu Dau Mot, Binh Duong; developed by BCM and planned as the focal point of operations in Binh Duong), has been cleared, with land use rights fees fully paid. 

- IJC also holds a 31.6% stake in the mega-scale IP & UA project Becamex Binh Phuoc with a total site area of 4,633 ha in Binh Phuoc (~80 km away from HCMC), which the company started to contribute capital to from Q1 2024. Additionally, IJC collects tolls from the National Highway 13, which is an important route connecting Binh Duong – HCMC – Binh Phuoc. 

- We forecast 2024F NPAT-MI to decline 34% YoY to VND262bn (USD10mn), mainly due to low presales (average 2023-2024 presales of ~VND340bn/USD14mn p.a., per our estimates). We expect 2025F NPAT-MI to surge 62% vs 2024F, driven by increased contributions from Sunflower II and IJC Hoa Loi, in addition to the expected launch of Prince Town II. 

- We derive a fair value for IJC of VND18,500/share. IJC is trading at a relatively attractive level with a 2024F P/E and P/B of 20.5x and 1.0x (based on our forecast), compared to its peers’ median LTM P/E and P/B of 40.3x and 1.5x, respectively. 

- Downside risks: Potential dilutions from upcoming capital raising plans due to large funding needs; a slower-than-expected recovery of the real estate market in Binh Duong. 


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