- We attended SZC’s annual general meeting (AGM) on April 11, 2025. 

- Shareholders approved 2025G guidance for total income (including net revenue, financial income, and other income) of VND931bn (USD36mn; +2% YoY) and NPAT-MI of VND302bn (USD12mn; flat YoY), which represent 79% and 71% of our respective forecasts. SZC completed 184%/107%/104%/132% of its respective 2021/22/23/24 NPAT-MI guidance. We foresee potential downside risks to our forecasts following the recent US reciprocal tariff announcement.  

- SZC announced preliminary Q1 2025 results with revenue of VND414bn (USD16mn; +94% YoY) and NPAT-MI of VND134bn (USD5.2mn; +106% YoY). The preliminary Q1 2025 NPAT-MI completes 44% of the company’s 2025G guidance and 31% of our full-year forecast. The company also stated that it has secured ~9.6 ha of MOU for its IP segment in Q1 2025 while the end-Q1 2025 unbilled backlog (not including the Q1 2025 MOU) is ~15.1 ha. 

- Shareholders approved the FY2024 and FY2025 dividend plans at 10% on par value for each year and did not specify if this would be cash or stock dividends. We currently assume an annual cash dividend of VND1,000/share during the forecast period. SZC paid a cash dividend of VND1,000 per share for FY2023, FY2021, and FY2020, while a 20% stock dividend was issued for FY2022. 

- Shareholders approved a 2025G disbursement plan for construction and land compensation of VND437bn (USD17mn; +43% YoY) and VND1.2tn (USD31mn; +6.0x YoY). In 2024, SZC received land handovers for ~41 ha at the Chau Duc IP & UA, bringing cumulative received land handovers from existing farmers/landowners to 1,886 ha (82% out of 2,288 ha in total site area).   

- Shareholders approved the plan for allocation to the I&D and B&W funds of 23.6% and 24.4% of SZC’s 2024 and 2025 NPAT-MI results, respectively. Among which, the allocation to the B&W fund in 2024/25 is 13.1% and 16.5%, respectively. 

Challenging land sales outlook, but Chau Duc IP remains well-positioned. Management acknowledged that the recent tariff announcement could create uncertainties for FDI inflows. However, they believe it is too early to assess the full impact, which will depend on future US-Vietnam negotiations and policy responses. That said, management remains confident in Chau Duc IP’s long-term appeal, given its strategic location and upcoming infrastructure — particularly the Bien Hoa Vung Tau Expressway (located 4 km from the Chau Duc IP & UA and scheduled for full completion by end-2025) — and its relatively attractive land pricing compared to neighboring IPs. 

Residential sales are expected to gain momentum. Management expects SZC’s residential revenue from handovers at the Huu Phuoc UA project to grow 2.5x YoY to VND78bn (USD3.0mn) for 2025G, in line with our expectation. Management is optimistic about YoY higher absorption in 2025G, supported by infrastructure upgrades and the potential provincial merger involving Ba Ria Vung Tau.