IDC Flash note – BUY

IDC held its 2026 Annual General Meeting with the following highlights:

– 2026 business plan: The company targets revenue of VND9,474 bn (+10% YoY) and profit before tax (PBT) of VND2,903 bn (-1% YoY).

– 2026 Industrial Park (IP) leasing plan: Target of 100 hectares of land (+31% YoY) and over 100,000 m2 of ready-built factory space (a 4-fold increase YoY).

– 2025 Profit distribution plan: stock dividend of 10% and cash dividend of VND3,000/share, of which 1,500 VND/share was already paid in 2025.

– 2026 Dividend: Expected at 40%.

– Future dividend policy: IDC plans to maintain an annual dividend payout of 30%–40%, assuming an annual IP land lease area of approximately 100 hectares is achieved.

– Tan Phuoc IP (470 ha): Phase 1 (360 ha) has completed compensation and legal documentation, and is currently under construction. The company expects to begin signing MOUs for leasing by late Q3 or early Q4/2026.

– Vinh Quang IP (226 ha): Phase 1 (164 ha) has completed compensation and legal documentation and is currently under construction. It is expected to begin signing MOUs at the end of 2026. This is IDC’s first eco-industrial park, designed to attract modern green technology, clean production, and logistics sectors.

– Expansion of ready-built factories: Tariffs and geopolitical conflicts, particularly in the Middle East, have created an unpredictable global economic environment. Consequently, some investors are limiting land leases for long-term projects and shifting toward renting factories to mitigate risks. In response, IDC is accelerating its ready-built factory development with a target of 1 million sqm over the next 3–5 years.

Quick comment: We adjust our forecast for IP rental growth in the coming years from 0% to 3-5% to reflect the improved outlook for the industrial park sector as the government accelerates investment in transportation infrastructure, expeditiously finalizes the Resolution on the development of the foreign-invested economy, and strengthens the attraction of large-scale, high-tech FDI projects. Consequently, our projected revenue and PBT for 2026 are adjusted upwards to VND9,071 bn (+6% YoY) and VND2,908 bn (unchanged YoY), respectively. The target price is adjusted upwards by 3% to VND53,600 per share. Maintain our Buy recommendation.