PC1 Flash Note- BUY

PC1 announced Q3/2025’s result with VND3,278 bn in revenue, +47% YoY, and NPAT of VND394 bn, +52% YoY. Cumulative 9M2025, NPAT was VND704 bn, +22% YoY, fulfilling 84% its plan and 76% ACBS’s forecast for 2025. The positive performance was mainly driven by robust growth in the construction and Industrial production (IP) segments, supported by an acceleration in public investment projects, particularly in power infrastructure, as well as improved profit margins from large-scale contracts. Additionally, the mining–nickel segment contributed positively to consolidated earnings thanks to enhanced operational efficiency and reduced input costs. Hence, we maintain a target price of VND32,800/share for PC1, giving a total expected return of 32.5%, rating BUY.

Revenue in Q3/2025 increased 47% YoY to VND3,278 bn, largely driven by the Construction and IP segments. Specifically, Construction contributed VND1,738 bn, +147% YoY, while the IP segment generated VND337 bn, +109% YoY. The gross margin of the Construction segment improved to 9% from 4% YoY, mainly due to a higher share of large-scale contracts such as the 110kV Con Dao Submarine Cable project. However, the overall gross margin of PC1 slightly declined to 21% from 22% YoY, as the construction and IP segments typically have lower margins compared to the group average. Consequently, gross profit reached VND681 bn, +41% YoY. Meanwhile, the Nickel segment recorded a 21% YoY decline in revenue to VND444 bn, but its gross margin expanded to 44% from 29% YoY, thanks to lower extraction costs. As a result, PC1’s gross profit increased 19% YoY to VND193 bn, supporting NPAT growth of 52% YoY to VND394 bn.

For 9M2025, revenue was VND7,538 bn, +7% YoY, and VND1,490 bn in gross profit, +11% YoY. The main contributions came from the Construction segment (Gross profit: VND171 bn, +99% YoY) and the Energy segment (Gross profit: VND631 bn, +12% YoY). Consequently, NPAT reached VND704 bn, +22% YoY, with NPAT’s margin improving from 8% YoY to 9%.

Quick conclusion: PC1 post a solid results for 9M2025, fulfilling 84% its target and 76% ACBS’s 2025 forecast. We maintain a target price of VND32,800/share for PC1, implying a total expected return of 32.5%, rating BUY.