KBC Update – BUY

KBC’s 2025 business results were in line with projections and showed strong growth compared to 2024, mainly thanks to the handover of 3 industrial clusters in Hung Yen. We maintain our 2026 projections but adjust our end-of-2026 target price down by 4% to VND 40,200/share due to a net debt increase of over VND2,600 bn. We change our recommendation from Outperform to Buy because the share price has decreased by 16% since the updated report on 11/25/2025.

KBC reported positive 2025 results with revenue reaching VND6,687 bn (+141% YoY) and NPAT reaching VND 2,227 billion (+426% YoY), completing 70% of the profit plan and 103% of ACBS’s projections, mainly thanks to strong growth in the industrial park (IP) segment.

The IP segment achieved revenue of VND4,396 bn in 2025 (+251% YoY) thanks to a 3.7-fold increase in handed-over area. Specifically, KBC handed over a total of nearly 123 ha in 2025, primarily comprising 94 ha in 3 industrial clusters (ICs) in Hung Yen and 26 ha in Nam Son Hap Linh IP. The gross profit margin (GMP) for this segment decreased to 58% from 68% in 2024, mainly due to the estimated GMP of the 3 ICs in Hung Yen being around 55%, lower than that of Quang Chau expansion IP and Nam Son Hap Linh IP.

The residential real estate segment also recorded positive results with 2025 revenue reaching VND1,460 bn (+61% YoY) thanks to a 43% YoY increase in the number of social housing units handed over in Nenh town and Trang Due, reaching nearly 2,200 units.

In 2025, KBC has been approved to develop 5 new IPs (Kim Thanh 2, Que Vo 2 Expansion, Song Hau 2, Binh Giang and Phu Binh) with a total area of 1,578 ha. Therefore, KBC’s total industrial land area increased to over 6,400 ha and the remaining net leaseable area increased to 2,845 ha by the end of 2025, among the highest in the industrial real estate sector. Kim Thanh 2 IP has cleared over 107 ha, equivalent to 45.66% of the total area. Phu Binh IP commenced construction on 12/19/2025.