Positive recommendation for KDH stock
MB Securities Company (MBS)
As of the end of February 2024, The Privia project of Khang Dien Housing Investment and Trading Joint Stock Company (KDH – HOSE floor) has successfully sold 99% of shopping carts, expected to start recording revenue in the fourth quarter/ 2024. The estimated sale value from the project in 2023/2024 could reach 3,297/524 billion VND. We forecast that revenue recorded from The Privia can reach VND 3,821 billion in 2024 (100% of the project).
The company is in the process of implementing 3 high-end low-rise projects: Emeria, Clarita (completed construction and expected to open for sale in the fourth quarter of 2024) and Solina (under site clearance). Accordingly, the total sales value of KDH in the period 2024-2025 may reach 1,999/8,729 billion VND, equivalent to a decrease of 54.3%/an increase of 336.6% compared to the previous year.
We forecast that business results in 2024-2025 will record revenue of VND 4,249 billion (103.5% growth)/VND 4,832 billion (13.7% growth) and net profit of VND 808 billion (up growth of 12.9%)/832 billion VND (growth of 3%).
KDH sets a 2024 revenue target of 3,900 billion VND (87% growth) and after-tax profit of 790 billion VND (10% growth), we think this goal is feasible when the real estate market has matured. There are positive signs, helping businesses reduce sales costs and provide discounts to support buyers compared to 2023.
The company has approved a plan to privately sell more than 110 million shares to 20 professional investors, expected to earn 3,000 billion VND, which will be used to repay bank debt. With the 2023 profits, the Shareholders’ Meeting approved the stock dividend plan at a rate of 10%, this rate will likely be maintained for 2024.
We give KDH a positive recommendation based on the following main arguments: (1) the real estate market has begun to show positive signs of recovery (2) sales are guaranteed and net profit continues to increase. (3) Healthy financial health. KDH’s downside risks include: (1) Progress of Emeria and Clarita projects along with Keppel does not meet expectations (2) Tan Tao project encounters legal issues that affect valuation (3) Market Real estate in general is unusually weak.
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Positive recommendation for DHC shares
Bao Viet Securities Company (BVSC)
Using the DCF valuation method, BVSC determined that the fair price of Dong Hai Ben Tre Joint Stock Company (DHC – HOSE) stock is 45,800 VND/share, corresponding to a target P/E of 11 times based on the forecast profit of 2024. .
Thereby, we maintain our OUTPERFORM recommendation for DHC, and expect the recovery of profits as well as the issuance plan to be the driving force to support the stock price in 2024.
Positive recommendation for SZC stock
SSI Securities Company (SSI)
We forecast that EPS in 2024 and 2025 of Sonadezi Chau Duc Joint Stock Company (SZC – HOSE) will reach 1,724 VND/share and 2,024 VND/share, respectively.
SZC has advantages such as: (1) The remaining area available for lease is more than 400 hectares; (2) The prospect of increasing rents is higher than other industrial parks in Ba Ria – Vung Tau – Chau Duc Industrial Park currently has 20-35% lower rents than other industrial parks and improved infrastructure connection significantly from the Bien Hoa-Vung Tau highway.
We currently have a positive recommendation for SZC stock, with a 1-year target price of 43,200 VND/share (upside potential of 8.4%).
NT
