Analyst Pin-board KBC – Strong growth thanks to cheap real estate landbank
- In 2021, revenue reached VND 4,093bn (100% yoy) and NPATI-MI reached VND 783bn (+250% yoy), with positive industrial park (IP) land sale progress. Gross profit margin improved from 32% to 57% thanks to a large contribution from Quang Chau IP, which has high leasing prices and low costs.
- In 2022, we estimate that revenue and NPAT-MI will grow strongly, reaching VND10,694 billion (+148%) and VND 3,409bn (+335%) respectively. Residential real estate will be the main growth catalyst, bolstered by unlocking Trang Cat landbank.
- KBC currently has a forward P/E valuation of 12.7x and forward P/B of 1.4x, as of the closing price on March 9th.
- KBC will issue 150 million shares, and we assume the private placement will take place in the second half of 2022.
Kinh Bac City Development Share Holding Corporation is a Vietnam-based company engaged in the real estate industry. The Company develops and operates industrial zones, residential areas, urban areas, as well as commercial and residential buildings. It is also involved in the provision of water and electricity supply services for industrial zones, along with engineering, architectural, interior decorating and maintenance services of real properties. Other activities include infrastructure construction and the offering of tourism services, hotel and restaurant services. The Company has six subsidiaries.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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