Khang Dien House (HOSE: KDH) | Q2 2025 Update, ADD – 1Y Upside +11.0%

In Q2 2025, KDH recorded revenue of VND 1,030.5bn (+62.9% YoY), mainly supported by continued handovers at The Privia. However, NPAT-MI declined -28.6% YoY to VND 198.7bn, as the same period last year benefited from the high-margin Classia project. For H1 2025, consolidated revenue reached VND 1,768.1bn (+80.6% YoY), while NPAT-MI came in at VND 320.7bn (-6.2% YoY).

On the project front, The Privia has completed handovers, with pink-book issuance in progress. Looking ahead, Gladia by the Waters (formerly Clarita and Emeria) is expected to be the key driver for H2, with the low-rise launch slated for Q3 2025 and bookings already underway. High-rise construction is targeted for H1 2026. Other projects such as The Solina, Tan Tao A, and Le Minh Xuan Expansion also continue to make progress on legal and construction milestones.

On the balance sheet, total borrowings rose to VND 9,142.4bn (+28.8% YTD) as of June 30, 2025, while net debt-to-equity remained stable at 56.5%. Inventory increased 3.7% YTD to VND 22,989bn, with notable growth at Tan Tao A (+18.7%), reflecting active land clearance progress.

From a market perspective, Vietnam’s residential real estate sector showed clearer signs of recovery in H1 2025. Credit to the sector rose 36% YoY to VND 1,640tn, the highest since 2023, supported by lower interest rates and new legal frameworks. Apartments remain the most resilient segment, while low-rise launches in Hanoi showed strong absorption, and land plots cooled after a heated Q1.

We adjust our recommendation on KDH to ADD with a 12-month Target Price of VND 37,750/share, implying +11% upside versus the closing price of VND 34,000 on August 22, 2025. The slight revision reflects updated book values as of Q2 2025 and removal of The Privia’s NAV following handovers.