Khang Dien, listed on the Ho Chi Minh Stock Exchange under the ticker KDH, is a real estate development company. It mainly focuses on developing residential projects, such as apartments, villas, and townhouses in Ho Chi Minh City and the surrounding areas.
In 2021, KDH recorded a revenue fall of 18.9 percent but an increase in profit of 5.6 percent.The stock price, subsequently, experienced a 2.2-fold increase from the beginning of 2021, peaking in January 2022. This was driven by real estate prices surging and tied to increased activity in the broader stock market–The VN-Index, experienced a rise of 38 percent from January 2021 to January 2022.
In 2022 and 2023, however, revenue declined significantly year-over-year, with profit dropping by 8.4 percent and 24.2 percent, respectively. This was largely due to the housing bubble that burst in October 2022 and a broader slowdown in the real estate market. Consequently, the stock price fell by 60 percent between March and November 2022.
In the first half of 2024, KDH’s revenue declined by 3.5 percent, and profit dropped by 32.5 percent compared to 2023. That said, Khang Dien has two major projects slated for sale in the fourth quarter of 2024, including the Emeria & Clarita—low-rise housing and apartment developments in Thu Duc City, co-developed with Singapore’s Keppel Land, featuring 200 townhouses, villas, and 600 apartments.
As these projects are completed and launched, business results are expected to improve. Additionally, according to a CBRE report released in July, the primary selling prices in Ho Chi Minh City’s condominium market are anticipated to increase by approximately 5 percent year-over-year moving forward which could also help to boost the firm’s bottom line.
Disclosure: The author does not have any financial interest in KDH stock.
See also: Vietnam’s Real Estate Market Recovery 2024: Unpacked