Kinh Bac Urban Development Corporation - JSC (KBC) has just announced its business results for the third quarter of 2023. During the quarter, sales and service revenue reached VND 247 billion. Consolidated profit in the quarter was VND 18.55 billion, down VND 1,916.53 billion compared to the same period in 2022.
Net profit from business activities in the third quarter of 2023 reached VND51 billion, while in the same period of 2022 it reached VND1,559 billion. Total pre-tax profit in the third quarter of 2023 was VND47 billion, while in the same period last year it reached VND1,957 billion.
According to KBC's explanation, the main reason is that during the period, the company has not yet handed over land to customers at Nam Son Hap Linh, Quang Chau and Tan Phu Trung Industrial Parks, with a total area of 50 hectares signed. The total value of the signed contracts is up to 1,700 billion VND and is expected to be handed over in the fourth quarter of this year.
In the first 9 months of the year, Kinh Bac achieved 4,798 billion VND in net revenue and 1,926 billion VND in net profit, 4 times higher in revenue but 5% lower in profit compared to the same period last year.
Total liabilities were over VND13,684 billion, down nearly 20% compared to the beginning of the year. Kinh Bac paid off nearly VND4,261 billion in principal during the period and had no outstanding bonds. Total outstanding loans remained at VND3,868 billion.
Recently, the Board of Directors has approved borrowing capital from member companies in the form of unsecured loans for a period of 3 years to serve production and business activities. Specifically, KBC will borrow 3,000 billion VND from Saigon - Bac Giang Industrial Park JSC, and 2,500 billion VND from Saigon - Hai Phong Industrial Park JSC. The loan interest rate is agreed upon in each loan contract, and the interest is paid in one lump sum upon repayment of the loans.
Mr. Dang Thanh Tam once shared that he and KBC were “lucky, not talented” when the industrial real estate business broke through, had abundant money and a large land fund ready to serve large foreign corporations, including Apple.
Recently, KBC has been leasing industrial park land at higher prices (1.5-2 times higher) and is targeting high-tech fields such as chip manufacturing.
Business News
The stock market has a number of other important events of listed companies.
* ABB: According to the financial statements for the first 9 months of the year, ABBank achieved more than 708 billion VND in pre-tax profit, down 59% compared to the same period last year, due to a decrease in net interest income and increased risk provisions.
* HAH : In the third quarter of 2023, Hai An Transport and Stevedoring JSC achieved more than 681 billion VND in net revenue, down 12% year-on-year; net profit reached nearly 106 billion VND, down 52% year-on-year. This is the fourth consecutive quarter that the company has recorded negative profit growth.
* BCC: Bim Son Cement Joint Stock Company has just announced its financial statements for the third quarter of 2023, recording net revenue of more than 660 billion VND, down 33% over the same period; net loss of nearly 56 billion VND. This is the 5th consecutive quarter of loss for Bim Son Cement.
*TMP : Thac Mo Hydropower Joint Stock Company reported a net profit of more than VND 115 billion in the third quarter of 2023, down 34% year-on-year. The results for the first 9 months of the year exceeded the annual plan.
* IDI: Multinational Investment and Development Corporation - IDI has just announced its business results for the third quarter of 2023 with revenue of VND 1,749 billion, down 11% year-on-year. After deducting expenses, IDI had a net profit of VND 19 billion in the third quarter, down 80% year-on-year.
* BIC : Vietnam Investment and Development Bank Insurance Joint Stock Company recorded a net profit of more than VND 324 billion in the first 9 months of 2023, an increase of 83% over the same period last year thanks to insurance business expenses increasing slower than revenue along with the reversal of provisions for devaluation of trading securities.
*VCS: In the third quarter of 2023, Vicostone JSC recorded net revenue of nearly VND 1,029 billion, down 6% year-on-year; net profit of nearly VND 195 billion, down slightly 3% year-on-year.
* SHB: Saigon - Hanoi Bank has just announced its consolidated financial report for the third quarter of 2023 with total assets reaching VND 596,000 billion, up 8.13% compared to the beginning of the year. Capital mobilization from market 1 reached nearly VND 475,000 billion. Equity capital according to Basel II reached VND 67,801 billion.
VN-Index
At the end of the trading session on October 30, VN-Index decreased by 18.22 points (-1.72%) to 1,042.4 points, HNX-Index decreased by 6.7 points (-3.07%) to 211.34 points, UpCOM-Index decreased by 0.82 points (-0.98%) to 82.28 points.
According to Shinhan Securities (SSV), in the coming sessions, VN-Index may still decrease further even though it is currently touching a strong support zone. In the worst case scenario, if VN-Index breaks through the 1,020 point zone, it is likely to fall to the 950-1,000 point zone. However, SSV believes that the probability of this scenario is not high.
Saigon - Hanoi Securities (SHS) believes that although the market continues to decline, it has returned to the previous medium-term accumulation zone and is likely to enter a state of accumulation again. In the short term, VN-Index may continue to decline and technical recoveries may appear.
SHS recommends that short-term investors should temporarily stand aside to observe developments and can take advantage of recovery periods to reduce the proportion of stocks if they are holding a high proportion of stocks. Medium- and long-term investors should continue to hold their portfolios and wait for the market to stabilize again.
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