X-Stock | KBC 34,000 +26%: Handovers are expected to peak in 4Q2026.

INVESTMENT THESIS

BSC maintains its BUY recommendation on KBC with a target price of VND 34,000/share (+26% vs. the closing price on 21/10/2026) based on the following views: (1) KBC is trading at a P/B of 0.9x, well below its 5-year average of 1.3x; (2) meanwhile, KBC's business results and industrial park (IP) handovers are recovering, benefiting directly from the China+1 trend, with expected handovers of 168 ha and 209 ha in 2026 and 2027, respectively.

BUSINESS RESULTS UPDATE

Q3.2026 results: Net revenue and NPAT-MI reached VND 3,187 bn (+136.57% yoy) and VND 911 bn (3x yoy), respectively, of which:

1. Results were driven mainly by (1) IP land handover revenue of VND 2,465 bn (+188% yoy), from about 45 ha handed over at Quế Võ 2 MR IP to Luxshare ICT (under the 96 ha MOU) vs. only 17 ha in Q3.2025; (2) real estate revenue of VND 497 bn (+74% yoy) from two social housing projects, Thị Trấn Nềnh and Tràng Duệ.
2. However, gross margin of 54% narrowed by 7.3 percentage points yoy, reflecting rising site clearance and infrastructure costs (according to the company, these costs are about 20-30% higher than before). In addition, financial expenses reached VND 358 bn (+51% yoy) as debt rose sharply yoy (mainly to fund the Tràng Cát urban area project).

BSC's assessment: Compared with our previous update (investors can view it here), KBC's results and IP handovers are in line with our expectations. In Q4.2026, we expect KBC to hand over the remaining area to Luxshare ICT and under signed MOUs.