DPG Flash note – OUTPERFORM

DAT PHUONG GROUP JSC (DPG VN)

Dat Phuong Group JSC (HOSE: DPG) held its 2025 EGM on 10/28/2025 with the following highlights:

Capital Raising Plan: The EGM approved a plan to privately issue 17.79 million shares, equivalent to 17.6% of total outstanding shares. The minimum offering price is set at VND 30,300 per share, representing 1.5x book value but around 30% below the market price as of October 28. The issuance is expected to take place during 2025–2026, targeting up to 20 professional securities investors, with a one-year lock-up period.

Use of Proceeds: The expected capital raised of at least VND 540 bn will be allocated as follows: (1) 48% to the Binh Duong Integrated Resort Complex Project;

(2) 18% as capital contribution to a subsidiary to develop the Dat Phuong Ultra-Clear Glass Manufacturing Plant; and

(3) 34% for working capital and construction equipment investment.

Business results in 9M2025: DPG recorded consolidated revenue of VND2,845 bn (+134% YoY) and net profit after tax of VND125 bn (+167% YoY), fulfilling 60% of its annual revenue target and 69% of its profit target, equivalent to 70% and 69% of our forecasts, respectively. Management expects FY2025 net profit to exceed the target by 10–15%, supported by strong growth in electricity output from the hydropower segment.

Project progress update:  DPG has fully settled land use fee obligations and expects to recognize revenue from the Casamia Balanca project during 2026–2027, with a minor contribution in 2025. The company is also expediting legal procedures and investment policy adjustments for the 199-hectare Binh Duong Integrated Resort Project, aiming for completion within 2025.

Quick comment: The private placement will strengthen DPG’s financial capacity, enhance its ability to fund future projects, and lower its debt-to-equity ratio, though it poses EPS dilution risk for existing shareholders. We maintain a positive outlook, expecting DPG’s operations to remain robust, driven by its three core business segments: infrastructure construction, hydropower, and real estate. We maintain our 2025 forecast with revenue of VND 4,081 bn (+14% YoY) and net profit after tax of VND 289 bn (+29% YoY), and reiterate our OUTPERFORM rating, with a target price of VND 49,200 at YE2025.