KBC – Unlocking the potential of existing projects
• In 2024, KBC recorded revenue and gross profit of VND 2.78 trillion (-51% YoY) and VND 1.28 trillion (-65% YoY), respectively. The weak performance was mainly due to the decline in revenue from land and infrastructure leasing in industrial parks, which reached only VND 815 billion (-77% YoY). During the period, the company recorded lease revenue from an area of 33 hectares (-80% YoY).• For 2025, with bottlenecks in land clearance being resolved, we expect the company to achieve relatively positive revenue. The net profit attributable to the parent company could reach VND 2.8 trillion (+557% YoY) under the scenario where approximately 180 hectares of industrial park land is delivered, mainly in Nam Son Hap Linh and Hung Yen Industrial Cluster. The projected EPS for 2025 is VND 3,700.
• In the long term, in addition to focusing on industrial parks that had previously received investment approvals, KBC plans to expand its business with newly approved industrial parks (Trang Due 03, Kim Thanh), increasing the total leasable land area to nearly 2,000 hectares.
• Using the Sum-of-the-parts method, we maintain the target price for KBC stock at VND40,600/share (Upside +36%, compared to the closing price on 24/02/2025), which is equivalent to the BUY recommendation for the long-term target. KBC continues to be the preferred IP company in 2025, as the company has readily available land for lease and continues to attract interest from FDI enterprises, particularly Chinese companies, in the coming period.
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