SIP Flash note – BUY

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

– 2026 Business targets: SIP sets revenue target of VND 5,940 billion and NPAT target of VND 874 billion, representing decreases of 31% and 40% respectively compared to 2025 results, and equivalent to 64% and 56% of ACBS’s projections. In previous years, the company has typically set its business plan for the following year to grow by approximately 5% compared to the previous year’s plan. Consequently, the annual business plan figures are consistently significantly lower than the prior year’s actual results, allowing the company to widely outperform its set targets (2024: exceeded revenue target by 45% and profit target by 61%; 2025: exceeded by 52% and 76%, respectively).

– 2026 industrial land leasing plan: SIP plans to lease 60 ha of industrial land in 2026, more than double the amount leased in 2025. This includes 40 ha in Phuoc Dong Industrial Park (IP), 10 ha in Loc An – Binh Son IP, 5 ha in Dong Nam IP, and 5 ha in Le Minh Xuan 3 IP.

– 2025 profit distribution plan: 2025 cash dividend will be VND 5,000/share, of which VND 1,000/share already paid in 2025 and the remainder will be paid in 2Q and 3Q of 2026.

– 2026 Dividend plan: Minimum 10% of charter capital.

– Preliminary 1Q2026 Business result: Revenue is VND 2,250 billion (+16% YoY), and NPAT is VND 352 billion (-13% YoY), achieving 38% and 40% of the targets, respectively. In this quarter, the company signed new leases for 35 ha of land and 10,000 sqm of factory space.

– Long Duc Phase 2 IP: The project is currently awaiting approval for land compensation pricing. In parallel, the company is adjusting the 1/2,000 plan, preparing the Environmental Impact Assessment (EIA) report, and developing the basic design. It is expected to be launched for leasing by the end of 2027.

– Dong Nai’s transition to a centrally-governed city presents both opportunities and challenges for SIP in attracting investment to its Loc An Binh Son and Long Duc Phase 2 IPs. With the upcoming development of several new IPs in the area, rental rates at these two IPs will remain competitive to meet investor demand.

– The Middle East tensions have impacted input costs for all tenants within the IPs; however, overall production operations remain stable and have not been significantly affected.

Quick comment: Given the stable growth of the electricity and water supply segment, the IP leasing segment being recognized using an annual allocation method, and revenue from deposits and loans expected to benefit from the upward interest rate trend, we think that the 2026 business results will continue to exceed the targets with estimated revenue of VND 9,217 billion (+7% YoY) and estimated NPAT of VND 1,568 billion (+7% YoY), unchanged from our previous projections. Maintain our target price but upgrade our recommendation from Outperform to Buy given a 6% drop in share price since the update report on February 5, 2026, and a higher-than-expected cash dividend for 2025.