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Company Quarterly Earnings Update – PHR VN – 9M 2024
Summary of 9M/2024 results and outlook of Phuoc Hoa Rubber JSC (PHR VN)
- PHR operates in two key business segments: rubber plantations, which contribute most of the revenue, and industrial park (IP) development, which drives net profit. The IP segment employs three approaches: self-developing projects, cooperating with other developers to develop IP, and selling rubber land.
- For 9M/2024, net profit fell to VND236 bn (-50% y/y) due to lower contributions from the IP segment, while other segments, such as rubber plantations and wood processing, recorded profit growth. The IP segment accounted for 33.3% of net profit, with interest income, rubber sales, and other segments contributing 33.1%, 12.6%, and 20.9%, respectively. Profit from the IP segment was mainly derived from shared profits from Nam Tan Uyen IP. No income was recorded from rubber land sales during this period, which had been a key contributor in the same period last year.
- In Q4/2024, net profit is forecast to be primarily driven by the IP segment. This includes the delivery of 31 ha from VSIP III at a leasing price of USD170 per sqm. The rubber segment is projected to be supported by higher selling prices and increased sales volume during the peak season.
- 2025’s Key growth drivers include the start leasing of 20 ha at Nam Tan Uyen 2 Extension IP, following the completion of its land-use rights (LUR) submissions and infrastructure development, and ongoing delivery of 40 ha at VSIP III. Contributions from other segments are forecast to remain stable at 2024 levels.
- 2026-2028’s growth will be driven by rubber land sales and leasing activities of new IP project. PHR will sell 1,000 ha of rubber land to BCM (600 ha) and BWE (400 ha), with these projects included in the provincial master plan, ensuring PHR’s eligibility to recognize income from the transactions. Negotiations with both developers are ongoing, with sales expected to close in 2026 and 2027 at a similar price to recent deals with VSIP and NTC. Additionally, leasing at Tan Lap 1 (200 ha) is forecast to begin in 2026 following the completion of legal procedures
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