NTC Initiation – BUY

NAM TAN UYEN INDUSTRIAL PARK JSC (NTC VN)

NTC has moved from UpCOM to HSX on 10/18/2025 with the reference price of VND161,470/share. The company owns the second largest IP land bank amongst the listed IP companies with 16 IPs, 7,548ha and 2,293 ha of NLA by end of 2Q2025. For 2025, we forecast revenue at VND887 bn (+141% YoY) and NPAT at VND464 bn (+58% YoY). Using the NAV method, we derive a target price of VND226,600/share at YE2026 and give a BUY rating for NTC given improving outlook of the industrial property segment, strong financial status, solid income source from associates and stable cash dividend of over VND6,000/share

NTC is an industrial park (IP) developer in HCMC with 3 IPs covering a total area of 966 ha and remaining net leasable area (NLA) of 227 ha. The first two IPs (Nam Tan Uyen and Nam Tan Uyen expansion) have nearly fully occupied, thus its new IP – Nam Tan Uyen expansion – Phase 2 with a total area of 346 ha and an occupancy rate of 18.2% is the key income generator.

Adding IPs developed by its associates and related parties, NTC would have 16 IPs covering 7,548 ha which has a total remaining NLA of 2,293 ha as of 2Q2025, ranking second in the IP sector behind Becamex IDC (HOSE: BCM) which includes its JV – VSIP. NTC successfully invested in these companies which yielded annual cash dividends of about VND100 bn, accounting for around one-third of NTC’s NPAT.

In the last five years, NTC recorded stable business results with revenue’s CAGR of 17% and NPAT’s CAGR of 5% given its annual allocation revenue recognition method and stable financial income from savings interest and dividends. Gross margins were stable at around 60% while net margins were even higher than gross margins and fluctuated in a high range of 80-110% mainly thanks to sufficient financial income.

For 2025, we forecast revenue at VND887 bn (+141% YoY) and NPAT at VND464 bn (+58% YoY). Growth mainly came from one-off revenue recognition from delivery of 20 ha at Nam Tan Uyen IP expansion – Phase 2 and VND100 bn of dividends from associates. For 2026, we expect revenue of VND1,274 bn (+23% YoY) and NPAT of VND629 bn (+36% YoY), generated from delivery of 30 ha at Nam Tan Uyen IP expansion – Phase 2 and VND100 bn of dividends from associates.