HT1 Flash note – BUY

VICEM HA TIEN CEMENT JSC (HT1 VN)

HT1 held its 2026 Annual General Meeting, highlighting the following key points:

– 2026 Business plan: HT1 targets revenue of VND7,979 bn (+9% YoY) and NPAT of VND400 tn (+46% YoY). Growth is expected to be driven by (i) pricing flexibility, evidenced by successful price hikes to offset input cost pressures, and (ii) accelerated public investment in Southern Vietnam (Long Thanh Airport, expressways, metro), positioning HT1 to benefit from higher cement demand and margin expansion.

– Dividend policy: The company plans a 2025 cash dividend of 3.2%.

– Cost management and risk mitigation: Rising coal prices and freight costs amid Middle East tensions since late February 2026 have pressured input costs. HT1 has responded through price adjustments, cost optimization, and raw material diversification. Over the longer term, the company is investing in waste heat recovery power generation (7.5 MW, capex of VND315 bn, expected operation from 2Q2026), alongside rooftop solar, to reduce electricity costs by ~30% and enhance margins.

– Land bank: HT1 owns a land plot in Thu Duc, currently undergoing legal procedures. While not contributing in the near term, it is expected to unlock asset value and provide long-term growth optionality.

– 1Q2026 results: HT1 reported PBT of VND102 bn, a 58x YoY increase. For 2Q2026, the company targets sales volume of 1.73 million tons and PBT of ~VND132 bn (+3.5% YoY), supported by demand from major infrastructure projects such as Tan Son Nhat T3 terminal, Long Thanh Airport, Can Tho–Ca Mau and Chau Doc–Soc Trang expressways, and Hon Khoai port cluster.

Quick comment: We expect cement demand in Southern Vietnam to recover, driven by public investment acceleration and a rebound in residential supply during 2026–2027. For 2026, we forecast revenue of VND8,341 bn (+9% YoY) and NPAT of VND362 bn (+42% YoY). We maintain a BUY recommendation with a target price of VND 20,200/share by end-2026.