KBC – Never been as good as the present
- KBC’s net revenue reached VND 2,223 billion (USD 96.7 million) in 1Q2023, up 221% YoY. After-tax profit of the parent company reached VND 940 billion (USD 40.9 million), up 96% YoY. The main driver of KBC’s revenue growth was the IP (Industrial Parks) leasing segment, which reached VND 2,077 billion (USD 90.3 million), up 555% YoY. Another driver for KBC’s earnings growth came from financial income, which reached VND 155 billion (USD 6.74 million), up 427% YoY thanks to KBC’s recognition of a profit of VND 108 billion (USD 4.70 million) from divesting the real estate project (Meridian Tower).
- KBC is more confident in its 2023 business guidance due to robust earnings in 1Q2023 and a huge balance of customer deposit as well as prepaid revenue. Total 2023 revenue was revised to VND 9,089 billion (USD 395.17 million) and NPAT to VND 4,098 billion (USD 178.18 million), +59% change compared to the previous forecast. The revised 2023 EPS will be at VND 5,399.
- Based on the sum of the parts methodology (SOTP), we revised the target price up to VND 31,000/share compared to the previous valuation as we (1) revaluate Trang Due 3 IP project when the general planning of Hai Phong city in the 2021-2023 period is approved sooner than expected, which is a key element for project to get investment policies approval. We expect the company to have the policy approval in 3Q2023. Besides, (2) we count Tan Tap and Loc Giang based on assumptions that these projects can be leased from 2025. The total expected return in the next twelve months will be +11. 5% (based on the closing price of May 10th, 2023).
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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