SIP Update – BUY

SIP’s 1Q2026 business results were mixed, with revenue increasing by 12% YoY to VND2,165 bn, while NPAT fell 11% YoY to VND357 bn. Industrial park (IP) leasing activities showed positive momentum with over 49 hectares signed in 1Q2026. We maintain our 2026 forecasts and year-end target price of VND72,500/share. Reiterate our BUY recommendation.

SIP announced mixed 1Q2026 results, with revenue up 12% YoY, to VND2,165 bn but PAT down 11% YoY, to VND357 bn, completing 41% of the 2026 profit target and 23% of ACBS’s full-year forecast. Revenue growth was primarily driven by the electricity and water supply segments, as well as utility services within IPs. The profit decline was due to: (1) A 17% YoY decrease in financial income (mainly due to lower profit from disposal of investments), (2) A 58% YoY increase in financial expenses and (3) A 77% YoY surge in SG&A expenses.

Electricity and water supply segment: Revenue reached VND1,687 bn (+6% YoY) in 1Q2026, accounting for 78% of total revenue. This growth was driven by higher consumption volumes across IPs. The gross profit margin (GPM) of this segment tightened slightly by 1 percentage point to 7.4%. In 2026, the company plans to invest in an additional 13 MWp of rooftop solar, bringing total capacity to 87 MWp, which is expected to support revenue growth and margin expansion for this segment.

Industrial land leasing segment: Revenue stood at VND117 bn in 1Q2026, flat YoY, with a stable GPM of 70.6%. IP leasing activities recorded positive results with over 49 hectares signed in 1Q2026—exceeding the full-year 2025 performance by 72% and achieving 82% of the 2026 leasing target. This included 35 ha at Phuoc Dong IP (primarily rubber product manufacturers) and 14.3 ha at Loc An – Binh Son IP leased to logistics companies Transimex and CJ Korea Logistics.

Outlook and Valuation:

Investment attraction for Loc An – Binh Son and Long Duc Phase 2 IPs is expected to be favorable as Dong Nai transitions to a centrally-governed city and Long Thanh International Airport is scheduled to begin commercial operations by the end of 2026. However, with new IPs expected to launch in Dong Nai, we anticipate that rental rates at these two IPs will remain competitive rather than seeing a sharp spike.

Long Duc Phase 2 IP is currently awaiting approval for land compensation prices while simultaneously adjusting its 1/2000 master plan, conducting Environmental Impact Assessment (EIA), and finalizing basic designs. SIP expects to begin operations at this IP by late 2027.

We maintain our 2026 forecast with projected revenue of VND9,217 bn (+7% YoY) and NPAT of VND1,568 bn (+7% YoY). We reiterate our BUY recommendation with a YE2026 target price of VND72,500/share, underpinned by the company’s robust financial position, strong new land absorption, and attractive cash dividends.