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IDICO CORPORATION – JSC (IDC VN)
A decline in 1H2025 business results was mainly due to a lower delivered industrial land area. Maintain our 2025 forecast and adjust YE2025 target price down by 6% to VND47,400/share mainly due to an issuance of stock dividend at 15% but an increase in investment of My Xuan A port and a lower net debt. Change our rating from Buy to Outperform as stock price has increased by 18% from our update report in May 2025.
IDICO announced a decrease in 2Q2025 business results with revenue of VND1,763 bn (-18% YoY) and PBT of VND519 bn (-30% YoY) mainly due to the decline in the industrial park (IP) segment. Result in 1H2025 followed the same trend with revenue of VND3,557 bn (-23% YoY) and PBT of VND1,040 bn (-40% YoY), completing 40% of profit target and 47% of our forecast.
IP segment: IP revenue in 1H2025 reduced by 49% YoY, to VND1,083 bn due to lower delivered area of 28 ha compared with 65 ha delivered in 1H2024. Leasing activities in 2Q2025 were affected by the US tariff with nearly 10 ha leased (-42% YoY) at 3 IPs in the south (Phu My 2, Phu My 2 expansion and Huu Thanh) while no new contract was signed at 2 IPs in the north (Cau Nghin and Que Vo 2). However, the total leased area in 1H2025 still grew by 10% YoY, to 47.8 ha, equivalent to 39% of the company’s target and 50% of our forecast thanks to good leasing activities in 1Q2025.
We think that the overall risk from the US tariff has reduced since April 2025 while the 40% tax rate on transhipped goods remains a concern. We maintain our 2025 estimated leased area of 95 ha (-5% YoY) and IP revenue at VND2,603 (-35% YoY) given 72 ha delivered.
Regarding Tan Phuoc 1 IP, IDC plans to finish land compensation, start constructing infrastructure at the end of 2025 and deliver land to tenants from 4Q2026 with expected rental rate of USD120-130/sqm. For Vinh Quang IP, progress of land compensation is faster. IDC spent VND300 bn for compensation 160 ha out of 226 ha in 2Q2025. The company expect to finish land compensation in 3Q2025 and start construction in 4Q2025.
Power segment: Power revenue in 1H2025 reached VND1,738 bn (+18% YoY), mainly thanks to the volume distributed in IPs increasing by 7.7% YoY to 794 mn kwh and the volume at Dak Mi 3 hydropower plant increasing by 86.4% YoY to 115 mn kwh. The power segment’s GPM increased from 4.8% to 8.8% mainly thanks to the increase in the GPM of Dak Mi 3. We maintain our 2025 estimated power revenue at VND3,851 bn (+14% YoY).
