KBC Update – OUTPERFORM

KINH BAC CITY DEVELOPMENT HOLDING CORPORATION JSC (KBC VN)

Strong growth in 3Q2025 and 9M2025 business results was mainly thanks to the delivery of 85.6 ha in industrial clusters in Hung Yen. We keep our 2025 forecast unchanged and roll forward the target price to VND41,900/share for YE2026. Therefore, we upgrade our rating from Neutral to Outperform as the market price has adjusted by 10% since our update report on 08/22/2025.

KBC reported a positive 3Q2025 result with revenue of VND1,347 bn (+42% YoY) and NPAT of VND312 bn (+55% YoY) mainly thanks to the delivery of nearly 20 ha in Nam Son Hap Linh industrial park (IP) (17 ha) and industrial clusters (ICs) in Hung Yen (2.6 ha).

The 9M2025 result also showed strong growth, with revenue of VND5,039 bn (+153% YoY) and NPAT of VND1,563 bn (+293% YoY), driven by a three-fold YoY growth in the IP segment’s revenue, to VND3,681 bn. This was supported by the delivery of over 105 ha of industrial land area, mostly at ICs in Hung Yen (85.6 ha) compared with nearly 30 ha delivered in 9M2024. 9M2025 NPAT completed 49% of KBC’s full year plan and 73% of our forecast. We keep our forecast of 2025 delivered area at 141 ha, equivalent to 67% of KBC’s targets.

In 9M2025, KBC was 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. These additions increased KBC’s total IP land bank to over 6,400 ha and its remaining NLA to 2,863 ha at the end of 3Q2025, placing the company among the largest developers in the IP industry.

In early November, KBC signed a MOU with Accelerated Infrastructure Capital (AIC) and VietinBank (HOSE: CTG) to develop a USD2 bn data center on a 10 ha land lot in Tan Phu Trung IP. Later this month, the company announced a partnership with CTP Invest Group – an industrial developer from Europe to develop a complex of seaports, airports, logistics and integrated industrial parks in Hai Phong. In 2026, CTP Invest Ltd Remon Vos will launch a 30-hectare infrastructure and factory project in Trang Due 3 IP, which is part of the Dinh Vu – Cat Hai Economic Zone. During this month, provincial committees are directing relevant governmental agencies to accelerate reimbursement and land clearance process at USD1.5 bn Khoai Chau urban complex, eco-tourism and golf course project (990 ha) in Hung Yen and VND11.5 trn Phu Binh IP (675 ha) in Thai Nguyen.