X-Stock | KBC 34,000 +25%: Expected Recognition of Que Vo 2 Expanded IP

INVESTMENT THESIS

BSC maintains a BUY recommendation for KBC with a target price of VND 34,000/share (+25% upside vs. closing price on September 4, 2026; -20% vs. the previous target price) based on the following key rationale:

• 2H2026 financial results are expected to record robust YoY growth, driven by the handover of 91 ha at Que Vo 2 Expanded IP to Luxshare. Additionally, KBC is trading at an attractive discount with a P/B of 0.9x compared to its 5-year historical average of 1.3x; hence, we believe downside risks at the current valuation are minimal as the industrial park segment continues to benefit from the "China+1" trend.
• The downward revision in our target price compared to the previous report is primarily attributable to raising the discount rate from 10% to 12% to reflect the higher interest rate environment in 2H2026.

BUSINESS RESULTS UPDATE

2Q2026 Results: Net Revenue and NPAT-MI recorded at VND 589 bn (+15% YoY) and VND 15 bn (-96% YoY), respectively.

• Net revenue growth of +15% YoY was mainly fueled by the residential real estate segment at VND 287.1 bn (nil in the same period last year), following the delivery of social housing projects in Nenh Town and Trang Due. Conversely, the IP segment recorded VND 96 bn (-72% YoY) as key expected IPs (Que Vo 2 Expanded, Phu Binh, etc.) remained in the site clearance and compensation phase.
• NPAT-MI dropped sharply YoY due to: (1) negative COGS in the base period resulting from cost reversals related to the Hung Yen IP; (2) low IP land handovers (5.3 ha) in 2Q2026; and (3) financial expenses reaching VND 304 bn (+173% YoY) driven by higher interest rates and outstanding debt balance compared to the same period last year.

BSC's Assessment: 2Q2026 performance was weak as it was not the inflection point for IP land handovers. For 2H2026, we maintain our expectation of a significant rebound in KBC's IP deliveries, driven by Que Vo 2 Expanded, Nam Son Hap Linh, and Trang Due projects (investors may refer to the subsequent section for details).