MB Securities (MBS) commented that the business results in the third quarter of 2024 of the group of industrial park real estate enterprises listed on the stock market continued to maintain good growth momentum. However, the growth rate of net profit among industrial park developers will vary, depending on the time of land handover during the year.
Of which, the net profit of Kinh Bac Urban Development Corporation - JSC (Code: KBC) may increase dramatically, 30 times higher than the same period last year on a low base, thanks to the handover of the remaining 16 hectares of land at the Quang Chau Industrial Park expansion (Bac Giang province).
Quang Chau Industrial Park expansion has an area of 90 hectares, of which the commercial land area is 67.4 hectares. In 2023, the project recorded revenue of about 2,000 billion VND for 51.71 hectares. The remaining area has tenants. The project is expected to be filled after 2 years of operation.
Similarly, SSI Research also reported that the Industrial Development and Investment Corporation (Becamex IDC, code: BCM) saw its profit grow by 22% compared to the previous year thanks to the accounting of the land transfer at Hoa Loi Residential Area to the Infrastructure Development Joint Stock Company (Becamex IJC, code: IJC). This deal could bring the company more than VND1,240 billion in revenue.
Regarding the divestment of state capital at Becamex IDC, the progress of state capital divestment at Becamex in the 2024 - 2025 period will decrease from 95.8% to 72% through the auction method, SSI Research expects.
Regarding the Hoa Loi project, this is a residential and resettlement area with a scale of more than 72.5 hectares invested by Vietnam - Singapore Industrial Park Joint Venture Company Limited (VSIP), located in Hoa Phu Ward, Thu Dau Mot City, Binh Duong. The entire project has 2,735 products, with a population of more than 9,100 people. At the end of 2021, Becamex transferred two plots of land of more than 1.9 hectares in this project to Becamex IJC and earned 400 billion VND.
Meanwhile, IDICO Corporation (Code: IDC) and Sonadezi Chau Duc JSC (Code: SZC) in the third quarter are usually lower than other quarters of the year. MBS forecasts that the net profits of these two enterprises will only increase slightly thanks to signed memorandums of understanding (MOUs).
The total land area for lease of IDICO Corporation in the second half of this year is expected to reach 30 - 50 hectares; thereby, completing the target of leasing industrial park land for the whole year.
For Sonadezi Chau Duc, profits are expected to increase by 13% year-on-year with the expectation that the company will hand over 6 hectares of land to Hoa Phat Group. This contract has a land rental price of 92 USD/m2/rental period, with a total value of 140 billion VND.
In addition, some businesses with rubber business segments will benefit from the sharp increase in world rubber prices since the beginning of the year.
Of which, Vietnam Rubber Industry Group (Code: GVR) could increase 182% compared to the same period last year thanks to high rubber selling prices; Phuoc Hoa Rubber JSC (Code: PHR) could also increase profits by more than 35% compared to the same period thanks to high selling prices and revenue from liquidating rubber trees recorded in this quarter.
