PC1 Update

Following the legal incident in May 2026, PC1 appointed additional members to its management team at an Meeting of Shareholders in Jul 2026 in an effort to stabilize its business operations. With a carry-over backlog of VND4,780 bn for the second half of the year, we believe that PC1’s short-term business operations will remain well supported. However, its medium- and long-term growth prospects should be assessed cautiously, based on its ability to secure new project contracts in upcoming bidding processes. This will also be a key indicator that we will closely monitor. For 2026, we forecast NPAT at VND1,077 bn, -21% YoY, based on the assumption that earnings in the second half of the year will typically be higher than those in the first half due to the nature of construction and installation activities, with projects generally being handed over toward year-end. Accordingly, with a 2026 target price of VND25,700/share, implying an expected total return of 26.0%, we assign a BUY rating.

Q2/2026: Net profit +42% YoY, driven by significant operating cost reductions.

Revenue declined 31% YoY to VND2,038 bn, primarily due to a sharp decline in the construction and installation segment, which generated VND1,729 bn, -51% YoY, and the industrial manufacturing segment, which generated VND345 bn, -66% YoY. Gross profit reached VND468 bn, -8% YoY, as higher gross profit margins in other segments, such as energy and mining, partially offset the decline.

Despite -31% YoY in revenue, Q2/2026 NPAT remained strong at VND235 bn, +42% YoY, primarily due to significant reductions in financial expenses, selling expenses, and administrative expenses.

For 6M2026, NPAT reached VND505 bn, up 63% YoY, fulfilling 48% of the company’s target and 47% of ACBS’s 2026 forecast. The improvement in 6M2026 earnings was primarily attributable to significant cost reductions. In addition, PC1 recorded a 169% YoY increase in financial income, mainly driven by a VND120 bn gain from the divestment of CT2 Real Estate Investment JSC, recognized in Q1/2026. Excluding financial income, core operating net profit reached VND385 bn, +24% YoY.