Land price forth pressures on cost of clearance

Investment thesis

• Average selling industrial land price in BR-VT continue to increase 20% YoY to $78- $90/sqm. And we expect land price will increase 5%/year on average. Current absorption rate is 48.4%, saleable area is about 530 ha.
• In Q2 2022, SZC’s revenue was VND 262 billion (+17% y-o-y) while gross profit was VND 92.3 billion (-38% y-o-y). NPAT was VND 61 billion (-44% y-o-y)
• BOT 768 will open in Q3 2022 after switching to ETC is approved.

Risk

• SZC carries VND 1,725 billion of long-term debt and VND 480 billion of short-term debt, payable of VND 270 billion, which mostly use for land clearance and construction.