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IDICO Corporation (IDC VN) – Q1 2025 – Lower Q1 Profits as Real Estate Lags, Leasing Grows
Summary of Q1 2025 results and outlook of IDICO Corporation JSC (IDC VN)
- Despite higher energy revenue and stable toll fee revenue, total revenue declined 3% y/y to VND1,793 bn, mainly due to lower contributions from the industrial park (IP) and real estate segments. Energy and toll fee accounted for 51.7% of total revenue, while IP and real estate made up the remainder. Energy revenue rose 18.5% y/y, supported by increased electricity distribution and higher hydropower output. In contrast, IP and residential real estate revenues fell 55.0% y/y and 35.1% y/y, respectively, primarily due to the timing of presold land handovers. Additionally, lower IP segment profit margins and reduced real estate contribution further weighed on profitability, bringing net profit down 50.6% y/y to VND343 bn.
- IDC secured 38 ha of new lease contracts during the period, up from 26 ha in Q1/2024. Additionally, the average leasing price across projects rose 6% y/y, reflecting sustained IP land demand even ahead of rising trade uncertainties.
- While the US reciprocal tariff may temporarily delay FDI inflows, recent developments have helped ease investor concerns. These include easing US-China trade tensions and President Trump’s clarification that the tariffs primarily target high-tech industries rather than labor-intensive sectors. Vietnam’s structural advantages, such as low production costs and deep global supply chain integration, remain difficult to replicate within a single US presidential term. According to some IP developers, site visits briefly slowed for two to three weeks but have since returned to pre-announcement levels, reflecting resilient investor interest.
- IDC is strategically positioned to capture rising demand, supported by a sizable remaining leasable area of 1,356 ha amid ongoing nationwide supply shortage.
- For the remaining 9M/2025, we project IDC to continue to deliver across five projects, though the total area is estimated to be slightly less year-over-year as we expect softer demand prior to a trade deal being finalized. Energy and toll fee segments are expected to remain stable. Looking ahead, we project earnings during the 2025-2029 period to be driven by contributions from three new IPs, raising annual leased area to ~130 ha, alongside the launch of two worker housing projects in Long An and Dong Nai provinces from 2026 onwards
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