KBC [BUY +25.5%] - Attractive valuation; solid medium-term profit outlook

- We maintain our BUY rating for KBC but trim our target price by 2% to VND39,400/share.

- Our lower target price is mainly due to the rescheduling of our handover projection for the Trang Due 3 IP (TD3; total site area of 687 ha) to 2025F vs 2024F previously, which is partially offset by rolling our TP horizon forward to mid-2025 from end-2024.

- We forecast a 13% YoY decline in 2024F NPAT-MI (VND1.8tn/USD71mn) mainly because of lower IP land handovers as KBC’s upcoming projects are still completing legal procedures. In addition to the estimated unbilled backlog of ~47 ha (as of April 2024), we expect new land sales in the Nam Son Hap Linh (NSHL) and Tan Phu Trung IPs to be the main profit contributor in 2024F.