2025 Earnings Update

In 2025, Khang Dien House (KDH) delivered solid business results, with revenue reaching VND 4,674 billion (+43% YoY) and net profit of VND 1,634 billion (doubling YoY), primarily driven by high-margin low-rise handovers at The Gladia project. However, the asset structure remains heavily skewed toward inventories (VND 23,264 billion, ~68.3% of total assets), while borrowings increased to VND 10,150 billion and operating cash flow has remained negative for multiple years. In the context of tighter credit conditions in the real estate sector, this remains a notable challenge. Nevertheless, we believe KDH maintains a relatively stable foundation, supported by gradual improvements in project legal progress, which lays the groundwork for upcoming development cycles and revenue recognition in the coming years.

Investment Thesis

(1) The Gladia underpins short-term growth
Low-rise units have entered the handover stage, enabling revenue recognition through 2026.

(2) Pipeline projects support cash flow and reduce debt pressure
After The Gladia, KDH continues to develop a new phase of more than 600 units (groundbreaking in Jan 2026; expected sales from Q3/2026), creating continuous cash flow.

The Solina (11A), currently 13/16ha cleared, is expected to launch from late 2026, together with Binh Trung Dong expansion, supporting medium-term revenue.

(3) Long-term advantage from land bank and consistent development strategy
KDH owns ~650 ha of land bank in Ho Chi Minh City, located in high-demand areas. Rising land prices and development costs reinforce its long-term growth advantage.