KBC — 2Q25 results

A sharp slowdown in 2Q25 after exceptional 1Q25 results. KBC achieved just 37% of its full-year revenue target and 39% of PAT guidance in 1H25.

Key Highlights

2Q25 Revenue fell sharply (-81% QoQ, -35% YoY) to VND579bn.

PAT declined by -53% QoQ but rose +46% YoY in 2Q25, with the YoY growth boosted by a VND177bn reversal of prior IP leasing segment provisions.

IP leasing slowed in 2Q25… Segment revenue plunged -84% QoQ to VND411bn as tenants delayed commitments pending tariff clarity. KBC delivered 86ha in 1H25, fulfilling 41% of its 210ha full-year target.

… but is poised for recovery. Following July’s revised tariff rates, KBC signed a 50ha MOU in Que Vo Expanded IP, increasing its backlog to 110ha from the previous 60ha (i.e., 30ha in Nam Son Hap Linh IP and another 30ha in Trang Due 3 IP).

Real estate sales stalled in 2Q25… KBC booked no revenue booked from this segment, compared to VND412bn in 1Q25; and zero units presold in 2Q25 versus 188 units presold (in Trang Due UA) in 1Q25.

… but KBC targets 40ha bulk sales in 2H25. Management is guiding for 20ha of social housing sales (including in Trang Cat UA.

Solid IP services & rental income. IP service revenue increased by +16% QoQ and +11% YoY to VND113bn; while leasing revenue from warehouses, factories, and offices slipped -2% QoQ but gained +17% YoY to VND55bn.

1H25 earnings are tracking behind KBC’s ambitious full-year targets. First half revenue rose +2.7x YoY to reach 37% of 2025 guidance, while PAT grew +3.5x YoY, meeting only 39% of the annual goal. As a reminder, KBC had reiterated its 2025 targets of VND10,000bn in revenue and VND3,200bn in PAT at its June 28 AGM—implying a steep 2H ramp-up.

Project approvals underpin long-term growth. In 1H25, KBC secured approvals for six IP projects totaling ~2,230ha, expanding its total IP landbank to 8,154ha. Key approvals included Binh Giang (147.9ha), Phu Binh (675ha), and Trang Due 3 (652.73ha).

Balance sheet expansion reflects development momentum. 2Q25 total assets surged to VND70.3tn (+30% QoQ, +72% YoY), making KBC the largest listed IP developer in Vietnam by assets. Specifically, inventory rose +72% YTD to VND23.8tn, driven by increases in Trang Cat UA (+87%, ~VND7.4tn), Loc Giang IP (+2.3x, ~VND1.4tn), and Trang Due IP (+3.1x, ~VND619bn).

KBC’s share price has rebounded by 63% since its post– “Liberation Day” low on April 16. The stock is currently trading at a TTM P/B of 1.3x vs. industry median of 2.2x and a TTM P/E of 17.8x vs. industry median of 13.1x. We have suspended coverage for now due to internal changes in our institutional research team.

For more details, please access the pdf link: KBC — Express note — 2Q25 results EN editted ver3