IDC – Handovers of large unbilled backlog fuel 2024 earnings growth – Earnings Flash
  • 2025-01-24T00:00:00
  • Company Research
  • IDC released its Q4 2024 results with revenue of VND2.0tn (USD77mn; -13% YoY and -14% QoQ) and NPAT-MI of VND358bn (USD14mn; -35% YoY and -30% QoQ). We attribute the QoQ decline mainly to fewer land handovers.
  • In 2024, IDC’s revenue grew 22% YoY to VND8.8tn (USD347mn), while NPAT-MI surged 43% YoY to VND2.0tn (USD78mn), achieving 98% and 99% of our full-year forecasts, respectively. We anticipate minimal adjustments to our 2025 forecasts, pending further review.
  • The IP segment’s revenue rose 21% YoY to VND4.0tn (USD156mn) in 2024, accounting for 45% of total revenue. We estimate IP cash inflows at VND4.5tn (USD176mn; +39% YoY), fulfilling 97% of our forecast. The segment’s GPM improved by 8.7 ppts YoY to 60.9%, mainly due to higher YoY ASP.
  • The utilities segment’s revenue increased by 15% YoY in 2024, which we attribute to (1) a YoY increase in energy consumption of IP tenants as production activities recover, and (2) YoY increases in electricity prices. However, GPM for the segment declined by 2.8 ppts YoY to 9.4%, primarily due to lower hydropower contributions caused by adverse weather conditions.
  • IDC has not yet provided detailed results on IP land sales and handovers for Q4 2024. We currently forecast IDC’s IP land sales to decline 45% YoY to 94 ha in 2024F (of which, 65 ha were in 9M 2024), but to recover to 140 ha in 2025F.

IDC’s 2024 results

VND bn

Q4
  2023

Q4
 2024

YoY

2023

2024

YoY

2024F

2024 as % of 2024F

Net revenue

2,239

1,955

-13%

7,237

8,846

22%

8,984

98%

   -  Industrial park (IP)

1,069

626

-41%

3,298

3,988

21%

4,338

92%

   -  Energy

854

1,012

18%

2,924

3,373

15%

3,137

108%

   -  Real estate

30

41

40%

103

532

5.2x

603

88%

   -  Other services

287

276

-4%

913

954

5%

906

105%

Gross profit

822

636

-23%

2,423

3,337

38%

3,383

99%

SG&A expenses

-110

-125

14%

-362

-398

10%

-386

103%

EBIT

712

510

-28%

2,061

2,939

43%

2,996

98%

Financial income

89

53

-40%

221

168

-24%

161

104%

Financial expense

-41

-32

-23%

-189

-136

-28%

-147

93%

Net income from affiliates

1

0

N.M.

1

1

-9%

0

N.M.

Net other income

-1

8

N.M.

-38

20

N.M.

12

165%

PBT

760

540

-29%

2,057

2,993

46%

3,022

99%

NPAT

624

438

-30%

1,656

2,393

45%

2,418

99%

NPAT-MI

551

358

-35%

1,394

1,996

43%

2,019

99%

 

 

 

 

 

 

 

 

 

GPM

36.7%

32.5%

 

33.5%

37.7%

 

37.7%

 

      -  Industrial park (IP)

55.3%

64.4%

 

52.3%

60.9%

 

59.0%

 

      -  Energy

15.8%

15.1%

 

12.2%

9.4%

 

7.2%

 

      -  Real estate

80.1%

82.0%

 

71.5%

71.4%

 

62.9%

 

OPM

31.8%

26.1%

 

28.5%

33.2%

 

33.4%

 

NPM

24.6%

18.3%

 

19.3%

22.6%

 

22.5%

 

Source: IDC, Vietcap forecasts (last updated November 21, 2024)

Powered by Froala Editor