10/11/2025 - 18:34
IDC — 3Q25 results — Express note
| Strong IP revenue, leasing recovery ahead
Strong 3Q25 results lifted 9M25 performance, though it is still running slightly lower YoY due to the high base. 9M25 revenue reached VND 6.4tn (-7% YoY) and PBT is VND 2.26tn (-8% YoY). IDC has fulfilled 72% of 2025 revenue guidance and 87% of its PBT targets. Key Highlights |
| 3Q25 revenue rose +63% QoQ and +26% YoY to VND 2.87tn, the highest quarterly result since 2Q22, primarily driven by the robust performance of the industrial park (IP) segment, which contributed 54% of total revenue.
3Q25 PBT surged +135% QoQ and +70% YoY to VND 1.2tn driven by higher contributions from the IP segment, which posted gross margin of 65%.Industrial park (IP) revenue rebounded strongly. 3Q25 IP segment revenue jumped to VND1.5tn (+2.1x QoQ; +52% YoY) on ~36ha delivered, accounting for 54% of year-to-date delivery performance and bringing 9M25 revenue to VND2.6tn (-22% YoY) from the high 9M24 base. Leasing momentum is slow amid tariff uncertainty. IDC leased only 7.7ha in 3Q25, bringing 9M25 contracted area to 55.4ha—just 45% of its 2025 target. The 4Q25 leasing outlook is brighter. IDC has reportedly signed some new contracts of 8-10ha scale during the past several weeks. The electricity segment also delivered solid 3Q25 revenue, up +14% QoQ and +17% YoY to VND 1tn, contributing 37% to total revenue. BOT revenues also improved by +2% QoQ / +5% YoY, reaching VND122bn. Residential real estate segment was a drag with 3Q25 revenue down -14% QoQ / -40% YoY. IDC recognized revenue from Bac Giang project, but the AEON Mall land transfer has not yet been booked because legal procedures are still pending despite the mall starting operation in Sep 2025. Social housing – IDC’s next strategic focus. Traditionally a supporting pillar for IDC’s IP ecosystem, the RE segment is set to gain momentum as the government prioritizes affordable housing for low-income workers. IDC plans to start the construction of social housing project in Nhon Trach in late 2025-early 2026, starting with 1,500 of the total 3,500 units. Its 51%-owned subsidiary, ICN, has secured approval for the My Xuan B1 project (1,200 units) in HCMC (previously BR-VT). IDC is also seeking approval for a social housing project in Vinh Bao (Hai Phong), adjacent to Vinh Quang IP. Positive updates on new IPs: Vinh Quang IP completed Phase 1 land compensation (162ha) while Tan Phuoc I IP received a favorable compensation pricing decision that drives the project’s estimated gross margin to 70%. IDC expects construction on both projects to begin in 1Q26. Our View We maintain our BUY rating on IDC. Its strong ready-to-lease GLA and robust land bank underpin solid growth prospects. IDC is currently trading at 2.2x P/B ratio, well below its 3y average, offering an attractive entry point. Please access the link for more details: IDC — Express note — 3Q25 results EN |
