Vinaconex (HOSE: VCG) | Q2 2025 Update, HOLD – 1Y Upside -0.9%.

Strong revenue, margin pressure persists: VCG delivered H1 2025 revenue of VND 7,008.1bn (+28.3% YoY) on robust construction activity, but NPAT-MI fell -22.1% YoY to VND 436.7bn due to a high base  last year due to profit recognition from real estate. Gross margin declined 7.1% YoY to 12.5%, with the construction segment facing persistent cost pressures.

VCR divestment to support Q3 earnings: VCG completed the sale of its 51% stake in VCR (developer of Cat Ba Amatina) in August 2025, potentially recognizing ~VND 1,200bn profit in Q3 2025. The expected proceeds of up to VND 5,140bn will strengthen liquidity, improve leverage, and provide capital for future projects.

H1 2025 FINANCIAL PERFORMANCE

o   Revenue: VND 7,008.1bn (+28.3% YoY)

o   PBT: VND 591.6bn (-20.3% YoY)

o   NPAT-MI: VND 436.7bn (-22.1% YoY)

We revise our 12-month Target price for VCG to VND 26,100/share, up from VND 24,600/share, following the completion of its divestment from VCR as of August 02, 2025. Based on the updated valuation and limited downside of -0.6% from the closing price of VND 26,360/share on August 11. With the stock up 31% since initiation and offering a -0.9% implied return from the current price, we downgrade from BUY to HOLD.