SIP – 2Q2025 Review: Solid Core Operations, Expanding Land Bank
2Q2025 Results: SIP reported revenue of VND 2,100 billion (+10% YoY) and NPAT-MI of VND 309 billion (+3% YoY). For 6M2025, net profit reached VND 660 billion (+21% YoY). In the first half of the year, SIP recognized 28.7 ha of industrial land sales (versus the full-year plan of 45 ha), mainly from Le Minh Xuan 3 (8.4 ha), Loc An – Binh Son (2 ha), and Dong Nam (1.5 ha).
Land Bank Expansion: SIP currently has ~1,200 ha of leasable industrial land across Tay Ninh, Ho Chi Minh City, and Dong Nai. Completion of land compensation for Phuoc Dong B IP will add 362 ha of commercial land, increasing Phuoc Dong’s leasable area to 755 ha. In addition, Long Duc Phase 2 IP (294 ha)—invested by VRG Long Duc (SIP owns 69.45%)—received investment approval in February 2025, further strengthening SIP’s industrial land portfolio.
Revenue Structure & Growth Drivers: Utility services (electricity and water) consistently contribute over 85% of parent revenue and ~75% of consolidated revenue, ensuring stable cash flow. SIP is also expanding into rooftop solar and warehouse/factory investments, diversifying income streams and enhancing value-added services for tenants.
Outlook: SIP’s medium- to long-term growth is underpinned by its large, well-located land bank, competitive leasing rates, and ample ready-for-lease inventory, which together support recurring and sustainable cash flows. The upcoming HCMC–Moc Bai Expressway—expected to start main construction in early 2026 and running through Phuoc Dong IP—will significantly enhance the park’s logistics attractiveness, accelerating lease-up and potential rental price appreciation.
Valuation & Recommendation: We maintains a Target Price (TP) of VND 77,100/share (post-dividend adjustment). We continue to view SIP as a solid industrial infrastructure play with attractive long-term fundamentals and steady cash-generating capacity.
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