SIP Update – BUY

SIP’s 2Q2026 and 1H2026 financial results were positive and in line with our projections. Growth during the period mainly came from other income of VND68 bn from the liquidation of BCC contracts with The He Moi, while the power and water supply segment continued to grow steadily based on the number of tenants, and the industrial park (IP) segment also recorded stable results thanks to the annual allocation method of revenue recognition. We maintain our 2026 projections and BUY rating but reduce the YE2026 target price by 6% to VND 68,000/share due to an adjustment of 5-10% reduction in IP leasing rates.

SIP recorded positive 2Q2026 financial results with revenue of VND2,402 bn (+13% YoY) and NPAT of VND447 bn (+41% YoY). Growth mainly came from:
(1) Other income of VND68 bn from the liquidation of BCC contracts with The He Moi,
(2) The electricity and water supply segment continued to grow steadily by 11% YoY, to VND1,991 bn mainly thanks to increased output along with a higher number of IP tenants, and
(3) The IP segment also recorded stable revenue growth of 19% YoY, reaching VND110 bn thanks to the annual allocation method of revenue recognition.

For 1H2026, the company also recorded positive results with revenue of VND4,567 bn (+12% YoY) and NPAT of VND804 bn (+8% YoY), completing 92% of the profit target and 51% of ACBS’s forecast. Growth during the period mainly came from the above factors.

In 1H2026, SIP leased 48 hectares of new IP area, a 66% increase YoY and achieving 80% of its plan. This includes 33.7 hectares at Phuoc Dong IP and 14.3 hectares at Loc An Binh Son IP. Leasing rates decreased slightly YoY due to the merger of Ba Ria-Vung Tau and Binh Duong provinces into Ho Chi Minh City, prompting the company to adjust leasing rates downwards to attract investment and enhance the competitiveness of the IPs.