KDH Flash note – BUY

KHANG DIEN HOUSE TRADING AND INVESTMENT JSC (KDH VN)

KDH held its 2025 Annual General Meeting on 04/22/2025 with the following highlights:

– 2025 business plan: KDH set revenue target of VND3,800 bn (+16% YoY) and NPAT of VND1,000 bn (+24% YoY) mainly from the handover of the remaining 40% of Privia apartment project and the low-rise component of two projects in cooperation with Keppel with a total scale of 12 ha in Thu Duc City.

– Two projects in cooperation with Keppel with a total scale of 12 ha in Thu Duc City: 200 low-rise units are expected to launch in 3Q2025 and handover in late 2025; 600 apartments are expected to start construction in 2026.

– Le Minh Xuan Industrial Park expansion (109ha in Binh Chanh district): phase 1 of 89ha is being built infrastructure in 2025-2026 and expected to start leasing from 2027.

– Project 11A (16ha in Binh Chanh district): an area of 13ha had land allocation decision and construction permit has been issued and infrastructure is being built.

– Phong Phu 2 project (133ha in Binh Chanh): KDH completed compensation and is in the process of completing the investment approval for this project

– A new Binh Trung Dong project (18ha in Thu Duc City): KDH completed compensation and is in the process of completing the investment approval for this project

– Land bank: Currently, KDH has a land bank of 620ha in HCMC. With the project of merging Binh Duong and Ba Ria – Vung Tau into HCMC, the company may consider expanding to Binh Duong and Ba Ria – Vung Tau if there are opportunities to acquire projects with good locations and clear legal status.

– 2024 profit distribution plan: Pay 2024 stock dividend of 10% and allocate 5% of 2024 NPAT to the bonus and welfare fund.

– ESOP: the company plans to issue 9.96 mn ESOP shares, equivalent to 0.985% of the total outstanding shares at an issue price of VND14,000/share

– 2025 dividend is expected to be 10%.

Quick comment: Because the launch of 2 projects cooperated with Keppel with a total scale of 12 ha in Thu Duc City were slower than expected, we adjusted our 2025 revenue forecast down 27% to VND3,563 bn (+9% YoY) and NPAT down 30% to VND1,047 bn (+30% YoY). As the development of new projects is slower than expected, we adjust YE2025 target price down 11% to VND33,800/share. Change recommendation from Outperform to Buy due to the 19% decrease in the market price compared to the updated report in November 2024.