Report

KBC – Has to wait further to see Trang Cat treasure

  • Nam Son Hap Linh, Tan Phu Trung and Trang Due urban project will be the main source of revenue for KBC in 2022. While, Trang Cat urban area project is likely to be delayed, along with Phuc Ninh urban area. Although the sales at Phuc Ninh urban is good, it can't be handed over due to unfinished obligation-related issues to book revenue this year.
  • In the base scenario, total revenue and NPAT in 2022 are estimated to be at VND 2,985 billion or USD 125.4 million (-30.7% YoY) and VND 3,044 billion or USD 127.89 million (+288% YoY), completing 30.5% and 68% of the year plan, respectively. In which, revenue and NPAT in 2H2022 are estimated at VND 1,900 billion or USD 79.8 million (+6.2% YoY) and VND 2,929 billion or USD 123 million (1,939% YoY).
  • Based on the sum-of-the-parts valuation (SOTP), we maintain our BUY recommendation and lower the target price to 33,400/share to (1) adjusting the discount rate to be more reasonable to the context of increasing interest rate pressure, (2)  delaying the business progress in Trang Cat urban area due to the legal issues mentioned below. Based on closing price of stock on 10/12/2022, the total expected return will be +43.7%.
Underlying
Kinhbac City Development Share Holding Corp

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.

Provider
Viet Dragon Securities
Viet Dragon Securities

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.

RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.

Analysts
Hung Le

Other Reports on these Companies
Other Reports from Viet Dragon Securities

ResearchPool Subscriptions

Get the most out of your insights

Get in touch