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SAIGON VRG INVESTMENT JSC (SIP VN)
Positive result in 1H2025 mainly thanks to the stable power & water supply and industrial park segments as well as a jump in financial income. Revise 2025 NPAT up by 6% to VND1,414 bn as we add income from the Phuoc Dong New City – Phase 2 project while keeping forecast of other segments unchanged. Our YE2025 target price is VND76,800/share, down by 19% compared to the previous update report given an issuance of 15% stock dividend, lower growth rates of IP leasing prices and power & water volume. Reiterate Outperform rating.
SIP posted a slight increase in 2Q2025 business result with revenue of VND2,129 bn (+10% YoY) and NPAT of VND342 bn (+3% YoY). Growth mainly came from the power & water supply segment which recorded revenue of VND1,800 bn (+11% YoY), accounted for 85% of total revenue. Profit grew at a slower pace than revenue mainly due to a 247% YoY increase in financial expenses, to VND63 bn.
SIP recorded positive result in 1H2025 with revenue of VND4,071 bn (+8% YoY) and NPAT of VND744 bn (+26% YoY), completing 89% of its profit target and 56% of our forecast. Growth in the top line was generated by the stable power & water supply segment while growth in the bottom line was mainly thanks to a 56% YoY jump in financial income, to VND401 bn, driven by higher saving and lending interests and profit from transferring shares of Nam Tan Uyen Industrial park JSC (UpCOM: NTC) and Tay Ninh Rubber JSC (HOSE: TRC).
After nearly 4 months of negotiation, the US agreed to reduce Vietnam tariff from 46% to a much more favourable rate of 20% which is in line with most ASEAN countries. The main concern is now a 40% tariff on transhipped goods which the US government has not clearly defined. Despite uncertainty from the US tariff, SIP is on track with its leasing plan with 26.7 ha leased in 1H2025, completing 59% of its target and 76% of our previous forecast.
In the 2025-2028 period, we project flat IP leasing prices compared to the 2024 levels, instead of an annual growth of 0–3% in the previous forecast. Newly leased area is assumed at around 40-48 ha per year, equivalent to around 80-90% of the 2019-2024 average, almost unchanged compared to the previous forecast.
In 2Q2025, SIP launched and sold out 79 townhouses at Phuoc Dong New City – Phase 2 project with selling prices from VND1.2 to VND1.9 bn/unit. The company delivered 27 units and recorded revenue of VND34 bn in 2Q2025. In 2025, we forecast that the company will launch over 200 units, deliver 111 units and record revenue of VND154 bn.
Overall, we forecast 2025 revenue of VND8,810 bn (+13% YoY) and NPAT of VND1,414 bn (+11% YoY), up by 2%/6% compared to the previous forecast given the adding of income from the Phuoc Dong New City – Phase 2 project while keeping forecast of other segments unchanged. Our YE2025 target price is VND76,800/share, down by 19% compared to the previous update report given an issuance of 15% stock dividend and lower growth rates of leasing prices at IPs and power & water volume.
