KDH - Capturing the price surge in the HCMC metro area
We believe that the key advantage of KDH in having two low-rise projects being ready to launch in the East of HCMC, namely Armena and Clarita during Q4 2021 and 2022, posting 30% CAGR growth on NPAT-MI in the 2020 – 2023 period.
Specifically, we estimate 2022 revenue to reach VND 3,913 bn (or USD 170 Mn, +12% YoY) and NPAT-MI of VND 1,576 bn (or USD 69 Mn, +71%), backed by the delivery of Armena and Clarita projects, along with revenue of Le Minh Xuan (expanded) project. These two projects will help KDH improve its gross profit margin. In 2023, the recognition at the Corona City project along with remaining units at three aforementioned projects will help the company reach revenue of VND 6,764 bn (or USD 294 Mn, +73% YoY) and NPAT-MI of VND 2,524 bn (or USD 110 Mn, +60% YoY).
Using the RNAV method, we set a target price for KDH of VND 56,000/share. We recommend to ACCUMULATE with a total return of 16% at the closing price on 16th Dec 2021
Khang Dien House Trading and Investment Joint Stock Company (KHADIHOUSE) is a Vietnam-based company engaged in real estate operations. The Company invests in the development, leasing and trading of houses, villas, apartment buildings and infrastructures for residential areas, as well as land, office buildings and commercial centers. It is also involved in the construction of civil and industrial structures, such as residential and nonresidential buildings, highways, streets and bridges. On May 5, 2014, the Company announced that it has divested all of its stake in Phuoc Long Real Estate Investment Trading Co Ltd.
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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