KDH – 9M 2024 profits in line with expectations; The Privia to start handovers in Q4 – Earnings Flash
  • 2024-10-31T00:00:00
  • Company Research
  • KDH reported its Q3 2024 results with revenue of VND253bn (USD10mn; -59% YoY; -24% vs Q1 2024 and -61% vs Q2 2024) and NPAT-MI of VND70bn (USD2.8mn; -66% YoY; +11% vs Q1 2024 and -75% vs Q2 2024). 
  • In 9M 2024, revenue declined 24% YoY to VND1.2tn (USD49mn) while NPAT-MI decreased 37% YoY to VND412bn (USD16mn). We attribute the 9M 2024 earnings results mainly to (1) handovers at The Classia (~180 low-rise units; 97% sold and over 95% handed over as of end-Q2 2024) and (2) sales of undisclosed land plots. 
  • 9M 2024 revenue and NPAT-MI fulfill 36% and 46% of our respective full-year forecasts. However, we expect insignificant change to our forecasts as we still expect that the handovers of The Privia (Binh Tan District, HCMC, a total of ~1,040 high-rise units, ~100% presold) will begin in Q4 2024 and will be a key contributor to our 2024F earnings forecast, pending a fuller review. 
  • For KDH’s upcoming 11.8-ha JV project with Keppel, we expect the presales launch to start this year as construction for the low-rise portion of this project has mostly been completed.

 KDH’s 9M 2024 results   

VND bn

Q3
 2023

Q3
 2024

YoY

9M
 2023

9M
 2024

YoY

2024F

9M as %
 of 2024F

Net revenue 

616

253

-59%

1,624

1,231

-24%

3,384

36%

Gross profit 

433

158

-64%

1,281

832

-35%

1,785

47%

SG&A expenses 

-120

-67

-44%

-257

-201

-22%

-503

40%

EBIT 

312

91

-71%

1,024

631

-38%

1,282

49%

Financial income 

13

7

-43%

33

30

-11%

56

53%

Financial expense 

-68

-13

-81%

-87

-45

-48%

-134

34%

Net other income 

-2

-11

N.M.

-14

-70

N.M.

0

N.M.

PBT 

256

74

-71%

956

546

-43%

1,204

45%

Tax expense 

-45

-8

-83%

-288

-136

-53%

-301

45%

NPAT-MI 

208

70

-66%

655

412

-37%

898

46%

 

 

 

 

 

 

 

 

 

Gross margin 

70.2%

62.5%

 

78.9%

67.6%

 

52.8%

 

SG&A as % of revenue 

19.5%

26.6%

 

13.5%

16.3%

 

14.9%

 

EBIT margin 

50.7%

35.9%

 

63.0%

51.3%

 

37.9%

 

NPAT-MI margin 

33.7%

27.9%

 

40.3%

33.5%

 

26.5%

 

Source: KDH, Vietcap forecast (last updated August 22, 2024)  

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