- 29 Jul 2026
- Company Research
We see insignificant changes to our 2026F reported NPAT-MI projection (VND1.7tn, +20% YoY) as IP (both IP land handovers and margins) and construction materials recovery are in line with our forecast, pending a fuller review. We currently have a BUY rating for VGC with a target price of VND66,800/share.
H1 2026: Revenue was VND7.7tn (+27% YoY, ~46% of our 2026F forecast) and NPAT-MI of VND778bn (+3% YoY, 46% of our 2026F forecast).
- Sales expansion was mainly driven by on track construction materials recovery (+26% YoY) and IP land sales & services (+21% YoY, IP handover area +15% YoY to 75 ha, ~50% of our 2026F forecast).
- Blended GPM contracted to 28.9% (-3.7 ppts YoY) as IP land sales & services’ GPM eased to 48.3% (-9.7 ppts YoY, given no cost deduction vs lower capex finalization in Q2 2025), in line with our forecast of 48.3%. This outweighed construction materials margin recovery to 17.5% (+1.7 ppts YoY) vs our forecast of 18.3%.
- Reported NPAT-MI rose just 3% YoY, well below 37% YoY growth in consolidated NPAT before MI, as minority interest surged nearly 5x YoY, attributed to minority stakes from IP subsidiaries.
Q2 2026: Revenue was VND4.5tn (+38% YoY) and NPAT-MI was VND563bn (+28% YoY).
- Revenue expansion was mainly driven by (1) YoY doubled IP land sales & services (55 ha of handovers vs 35 ha in Q2 2025), and (2) continuing construction materials recovery (+10% YoY).
- Blended GPM narrowed to 31.1% (-4.2 ppts YoY), as IP land sales & services’ GPM normalized to 47.7% (-32.6 ppts YoY, reflecting no one-off cost deduction), outweighing continued construction materials margin recovery to 18.2% (+3.1 ppts YoY).
- Reported NPAT-MI grew slower vs revenue due to margin contraction (no one-off) and 2.6x YoY minority interest.
VGC’s Q2 & H1 2026 results
VND bn | Q2 | Q2 | YoY | H1 | H1 | YoY | % of Vietcap 2026F |
Revenue | 3,240 | 4,462 | 38% | 6,095 | 7,737 | 27% | 46% |
IP land sales & services | 1,005 | 1,998 | 99% | 2,397 | 2,912 | 21% | 48% |
Residential estate | 96 | 114 | 19% | 133 | 329 | 148% | 60% |
Construction materials | 2,139 | 2,351 | 10% | 3,565 | 4,496 | 26% | 43% |
Others | 0 | 0 | N.M. | 0 | 0 | N.M. | N.M. |
Gross profit | 1,147 | 1,391 | 21% | 1,989 | 2,237 | 12% | 47% |
IP land sales & services | 807 | 953 | 18% | 1,390 | 1,405 | 1% | 48% |
Residential estate | 17 | 10 | -41% | 24 | 36 | 47% | 40% |
Construction materials | 323 | 428 | 32% | 574 | 800 | 39% | 41% |
Others | 0 | 0 | N.M. | 0 | -4 | N.M. | N.M. |
Selling exp | -242 | -201 | -17% | -416 | -401 | -4% | 36% |
G&A | -183 | -204 | 11% | -366 | -396 | 8% | 43% |
Operating profit | 722 | 982 | 36% | 1,207 | 1,439 | 19% | 52% |
Financial income | 54 | 86 | 60% | 78 | 130 | 68% | 148% |
Financial expenses | -72 | -67 | -7% | -160 | -155 | -3% | 44% |
Interest expenses | -65 | -63 | -3% | -130 | -129 | -1% | 42% |
Income from JVs | -4 | 0 | N.M. | -9 | 2 | N.M. | N.M. |
Other income | 28 | 34 | 21% | 26 | 36 | 41% | N.M. |
Profit before tax | 729 | 1,036 | 42% | 1,142 | 1,453 | 27% | 58% |
NPAT before MI | 540 | 831 | 54% | 839 | 1,152 | 37% | 58% |
Minorities interest | -102 | -269 | 164% | -80 | -374 | 370% | 123% |
NPAT-MI, reported | 438 | 563 | 28% | 759 | 778 | 3% | 46% |
Source: VGC, Vietcap
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