IDC - Earnings decline in Q1 due to lower IP land handovers - Earnings Flash
  • 2025-04-29T00:00:00
  • Company Research
  • IDC released its Q1 2025 results with revenue of VND1.8tn (USD69mn; -27% YoY) and NPAT-MI of VND343bn (USD13mn; -51% YoY), representing 19% and 17% of our respective full-year forecasts. We attribute the YoY declines in Q1 2025 mainly to fewer land handovers. We foresee potential downside risks to our forecasts mainly due to potential headwinds from the recent US reciprocal tariffs announcement, pending a fuller review.
  • IDC’s Q1 2025 IP land sales were ~40 ha in contracts/MOUs (see our IDC AGM Note), compared to the company’s guidance of 124 ha and our forecast of 140 ha. 
  • The IP segment recorded Q1 2025 revenue of VND589bn (USD23mn; -55% YoY), contributing 33% of IDC’s total revenue. We estimate IP cash inflows at VND744bn (USD29mn; -35% YoY), achieving 17% of our full-year forecast. The segment’s GPM dropped 8.4 ppts YoY to 55.4% in Q1 2025, which we attribute largely to a greater revenue contribution from lower-margin projects such as Huu Thanh, Cau Nghin, and Que Vo IPs, compared to the higher-margin Phu My 2 and Phu My 2 Expansion IPs.
  • Residential revenue was VND182bn in Q1 2025 (USD7mn; -35% YoY), primarily driven by scheduled handovers of unbilled backlog at the Bac Chau Giang UA project in Ha Nam. 

IDC’s Q1 2025 results 

VND bn

Q1
 2024

Q1
 2025

YoY

2025F

Q1 as %
 of 2025F

Net revenue

2,467

1,793

-27%

9,457

19%

  •      Industrial Park (IP)

1,308

589

-55%

4,474

13%

  •      Energy

688

816

19%

3,655

22%

  •      Residential

281

182

-35%

326

56%

  •      Others

190

207

9%

1,002

21%

Gross profit

1,098

551

-50%

3,422

16%

SG&A expenses

-93

-102

10%

-421

24%

EBIT

1,005

449

-55%

3,002

15%

Financial income

31

65

110%

208

31%

Financial expense

-35

-39

12%

-148

26%

Net income from affiliates

0

0

N.M.

0

N.M.

Net other income

-2

45

N.M.

20

221%

PBT

999

521

-48%

3,082

17%

NPAT

797

417

-48%

2,466

17%

NPAT-MI

695

343

-51%

2,071

17%

 

 

 

 

 

 

GPM

44.5%

30.7%

 

36.2%

 

  •      Industrial Park (IP)

63.8%

55.4%

 

58.4%

 

  •      Energy

5.1%

8.6%

 

10.0%

 

  •      Residential

61.6%

54.1%

 

57.6%

 

OPM

40.7%

25.0%

 

31.7%

 

NPM

28.2%

19.1%

 

21.9%

 

Source: IDC, Vietcap forecasts (last updated March 18, 2025)

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