KBC Update – OUTPERFORM

3Q2026 business results showed strong YoY growth as a new industrial park (IP), Que Vo 2 expansion, began handing over 56 hectares. We expect the company to continue accelerating handovers and recognizing revenue from the new IPs in 4Q2026, and we maintain our 2026 forecasts. For 2027, we expect the company to continue its double-digit growth as the new IPs begin to record higher revenue, and the company is expected to maintain its attractiveness to electronics and high-tech manufacturing corporations. We roll over our target price to year-end 2027 at VND32,000/share, which is 18% higher than the current price. Reiterate Outperform rating.

KBC recorded very positive 3Q2026 business results with revenue reaching VND3,187 bn (+137% YoY) and NPAT reaching VND937 bn, a 3-fold increase YoY, primarily driven by the handover of 56 hectares at the new Que Vo 2 expansion IP following a prolonged compensation period.

However, 9M2026 business results remained low compared to the company’s targets, with revenue reaching VND5,112 bn (+1% YoY) and NPAT reaching VND1,197 bn (-23% YoY), completing 40% of the profit target. This was due to the prolonged compensation and site clearance process for new IPs in the first half of the year, which prevented KBC from accelerating the handover and recognition progress. In 9M2026, KBC delivered 76ha (-28% YoY), mainly at Que Vo 2 expansion IP (56 ha) and Nam Son Hap Linh IP (12 ha). In 4Q2026, KBC is expected to hand over ~100 hectares with revenue of approximately VND3,000 bn.

Vietnam’s FDI attraction remained positive despite political instability in the Middle East and the US investigating two issues: overcapacity and intellectual property, to adjust tariffs on Vietnam after imposing a 12.5% tariff regarding the forced labor issue. Total registered FDI in 9M2026 reached over USD 50 bn (+76% YoY), far exceeding the full-year 2025 level of USD38.4 bn. Disbursed FDI continued to grow steadily, reaching over USD21 bn (+12% YoY).

In October 2026, the Government submitted a draft law to the National Assembly to amend and supplement the Law on Investment. The proposal includes several adjustments that would positively impact the industrial real estate sector—most notably, extending the operational lifespan of projects within eco-IPs to a maximum of 70 years and allowing developers to apply accelerated depreciation methods to assets located in these IPs. We believe these measures will help accelerate progress toward the Government’s target of having 10% of IPs be eco-IPs by 2030 and also reduce the taxable income of developers during the initial stages of operation. We anticipate that KBC’s new eco-IP projects—Trang Due 3, Binh Giang, and Phu Binh—will benefit from these changes.

Link to the full report: KBC_Update_23.10.2026