- KBC announced its Q1 2025 results with revenue of VND3.1tn (USD120mn; +20.5x YoY) and NPAT-MI of VND783bn (USD30mn; compared to net loss of VND86bn/USD3.3mn in Q1 2024). The strong Q1 2025 results were mainly driven by the handovers of ~90 ha at the Hung Yen industrial clusters (ICs) to high-tech tenants from South Korea, per KBC.
- Although Q1 2025 NPAT-MI fulfilled 46% of our full-year forecast, we anticipate potential downside risks to our forecasts (pending a fuller review) mainly due to potential headwinds from the recent US reciprocal tariff announcement.
- In the industrial park segment, the handovers in Q1 2025 were broadly in line with our expectations but the segment’s GPM was lower than projected, which we attribute to the Hung Yen ICs generating lower margins during their initial sales phase.
- KBC recorded IP land sales of ~126 ha YTD, comprising ~36 ha from Nam Son Hap Linh IP (unbilled backlog to Goertek) and ~90 ha from the Hung Yen ICs handed over in Q1 2025. We estimate the end-Q1 2025 unbilled IP land backlog at ~41 ha (~36 ha from NSHL IP and ~5 ha from the Quang Chau IP).
- In the residential segment, handovers at the Nenh Town social housing project in Bac Giang (12.6 ha, 7,000 units; presales began in August 2023) were the key contributor to revenue.
- KBC fully settled its remaining land use rights fee for the Trang Cat UA in Q1 2025, in line with our expectation and management’s comments during the March 2025 EGM. KBC’s inventory rose 46% QoQ to VND20.3tn (USD780mn), with the Trang Cat urban area (UA) project accounting for 76% of the total.
- Net debt to equity increased to 51% in Q1 2025 from 17% at end-2024 as total debts surged 74% QoQ to VND17.6tn (82% of total equity). The increase in debt was mainly used to finance the land use rights fee payment of the Trang Cat UA project.
KBC’s Q1 2025 results
VND bn | Q1 | Q1 | YoY | 2025F | Q1 as % |
Net revenue | 152 | 3,117 | 20.5x | 7,112 | 44% |
- IP | 0 | 2,484 | N.M. | 5,036 | 49% |
- UA | 15 | 412 | 28.1x | 1,429 | 29% |
- Others | 138 | 221 | 61% | 646 | 34% |
Gross profit | 74 | 1,209 | 16.4x | 3,364 | 36% |
SG&A expenses | -114 | -175 | 53% | -989 | 18% |
EBIT | -41 | 1,033 | N.M. | 2,375 | 44% |
Financial income | 68 | 135 | 99% | 372 | 36% |
Financial expense | -54 | -113 | 109% | -623 | 18% |
Net income from affiliates | -7 | 45 | N.M. | 129 | 35% |
Net other income | -3 | 24 | N.M. | 0 | N.M. |
PBT | -36 | 1,125 | N.M. | 2,253 | 50% |
NPAT-MI | -86 | 783 | N.M. | 1,697 | 46% |
|
|
|
|
|
|
GPM | 48.5% | 38.8% |
| 47.3% |
|
- IP | N.M. | 40.5% |
| 55.2% |
|
- UA | 35.0% | 14.1% |
| 21.4% |
|
OPM | -26.6% | 33.2% |
| 33.4% |
|
NPM | -56.3% | 25.1% |
| 23.9% |
|
Source: KBC, Vietcap forecasts (last updated March 18, 2025)
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