VRE Flash note- BUY

Profit growth in 1Q2026 mainly came from higher financial revenue and an extraordinary profit of VND185 bn from the transfer of an investment property. The 2026 profit forecast is adjusted upwards by 3%, to VND5,581 bn to reflect this extraordinary profit. The target price for the end of 2026 remains at VND36,000/share, but the recommendation is changed from Outperform to Buy thanks to the 7% share price decline since the report dated January 27, 2026.

VRE announced positive 1Q2026 results with revenue of VND2,294 bn (+8% YoY) and NPAT of VND1,606 bn (+36% YoY), completing 30% of the profit plan and 30% of ACBS’s forecast. Profit growth mainly came from:
(1) Financial revenue (mainly from interest on deposits, loans and deposits) increased by 34% YoY, to VND836 bn;
(2) Extraordinary profit of VND185 bn from the transfer of an investment property to a hospital in Tan Son Nhat ward, Ho Chi Minh City.

The property leasing segment had stable growth in 1Q2026 with revenue reaching VND2,208 bn (+9% YoY) and the segmented gross profit margin decreased slightly to 56.2% compared to 58% in 1Q2025. If we exclude the operating results of the transferred shopping mall in 4Q2025, VCC Nguyen Chi Thanh, revenue of this segment grew by 11.8% YoY in 1Q2026 thanks to:
(1) the occupancy rate of shopping malls improved to 88.9% at the end of 1Q2026 compared to 86.1% in 1Q2025 and
(2) 3 new shopping malls opened in 2025 with a total GFA increase of 119,000 sqm.

VRE maintains its plan to open 1 new shopping mall in 2026, Vincom Plaza Dan Phuong, with a retail GFA of approximately 25,000 sqm in 3Q2026. In 2027, the company plans to open VMM Hau Nghia in Tay Ninh and upgrade VCP Cong Hoa. In 2028, VRE plans a large-scale expansion and expects to open 3-5 new shopping malls, including 3 malls at the Vinhomes Green Paradise project in Can Gio, and 2 VMM projects located within the Vinhomes Global Gate complex in Hanoi and Quang Ninh, respectively.

Vincom Collection is a model of managing, operating, and marketing commercial streets (shophouses) in Vingroup’s major urban areas. This model is still in the initial investment and completion phase, therefore its contribution to 2026 revenue is insignificant, only about 1.5–2%.

The 3 shophouse projects in Vu Yen, Mong Cai, and Can Gio have a total investment of approximately VND13,000 bn. The Vu Yen and Mong Cai projects are expected to launch as early as 2027, and the Can Gio project is expected to launch in 2028.