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SIP Posts Highest Q1 Profit in 4 Years, Reaching Nearly 50% of Annual Target

4 May, 2025

Consolidated revenue for the first three months reached over VND 1,941 billion, a 6% increase compared to the same period last year. The main driver continues to be the provision of electricity and water utility services to industrial parks, contributing nearly VND 1,590 billion, or over 80% of total revenue, and a 7% increase year-on-year.

Source: VietstockFinance

Gross profit margin improved from 15% to nearly 17%, resulting in a gross profit of over VND 320 billion, an 18% increase. Additionally, financial revenue increased to nearly VND 234 billion, triple that of the previous year, due to the recognition of gains from divestment.

Despite a significant 65% increase in total expenses, mainly due to doubled interest expenses of over VND 32 billion, the impact was not substantial. Finally, the Company recorded a profit of over VND 351 billion, a 43% increase and the highest since the first quarter of 2021.

Entering 2025, SIP has set a cautious business plan with consolidated revenue of VND 5,657 billion and after-tax profit of nearly VND 833 billion, down 33% and 35%, respectively, compared to 2024 performance.

With a low base plan, SIP has already achieved nearly half of its profit target, and the remaining journey may be smoother.

This year, the Company plans to lease 45 hectares of industrial land, mainly focused on the Phuoc Dong Industrial Park with 30 hectares, while the remaining allocation is evenly distributed across the Dong Nam, Le Minh Xuan, and Loc An – Binh Son Industrial Parks. Regarding factory leasing, the Company expects to rent out nearly 25,900 square meters.

As of the end of the first quarter, SIP’s total assets exceeded VND 26,300 billion (over $1 billion), a 5% increase from the beginning of the year. The enterprise holds over VND 6,000 billion in bank deposits, equivalent to 23% of total assets.

Inventory decreased to over VND 319 billion, with half comprising production and business costs for the Ben San resettlement area project of VND 84 billion and the Thuan Loi residential area project of over VND 109 billion. Incomplete basic construction costs decreased by 4%, standing at over VND 2,200 billion, with significant concentrations in Le Minh Xuan 3 Industrial Park 3 of nearly VND 708 billion, Loc An – Binh Son Industrial Park of nearly VND 238 billion, and Dong Nam Industrial Park of nearly VND 200 billion.

Payables exceeded VND 21,000 billion, a 4% increase, but this does not raise concerns as the majority comprises prepayments from customers and unearned revenue (advance payments for land and factory rentals) of SIP, totaling more than VND 12,400 billion, a 3% increase, and accounting for nearly 60% of total liabilities. In contrast, financial borrowings amounted to over VND 4,100 billion, a 15% increase, making up 20% of total liabilities.

Against the backdrop of evolving international trade policies and the potential impact of US tariffs, Chairman of the Board of Directors, Tran Manh Hung, assured that the risk to SIP is not significant. He stated, “SIP’s revenue structure is largely derived from utility services, accounting for 70%, while land leasing is accounted for over 50 years. In contrast, companies engaged in pure land leasing and one-time accounting would undoubtedly be severely impacted.”

* [Chairman of SIP: Pure Land Leasing Companies with One-Time Accounting will be Significantly Affected by Tariffs](https://www.vietstock.vn/2025/04/chu-tich-sip-cong-ty-linh-vuc-cho-thue-dat-trinh-bay-mot-lan-se-anh-huong-lon-tu-thue-quan-20250429151757591.htm)

[Thanh Tu]

– 11:10 01/05/2025