(EN) GTJASVN_SIP_Equity Initial Report_26.06.2025

INVESTMENT THESIS

Short-Term Business Outlook: The positive short-term outlook for SIP is supported by existing projects and a stable revenue structure from a backlog of approximately VND 12,000 billion. While industrial park (IP) land leasing activities are impacted by tariff policies, the stable revenue from signed IP land leasing contracts and utility services (electricity and water) within the IPs ensures consistent revenue generation.

Medium- to Long-Term Outlook: SIP possesses significant growth potential due to its large, legally cleared commercial land bank of over 1,000 hectares, concentrated in strategic locations. In the medium to long term, we assess that SIP’s robust asset foundation positions it to capitalize on opportunities as domestic and foreign investment capital rebounds strongly. The company’s legally cleared land bank provides a significant advantage amid increasingly stringent regulatory requirements, which prolong approval times for new projects. This enables SIP to swiftly resume development and leasing activities when demand recovers, without delays for land clearance or new permits. Financial Strength: SIP maintains a healthy financial position, supported by abundant cash flows from IP land leasing activities and minimal reliance on debt financing.

For 2025, we forecast that Saigon VRG Investment Joint Stock Company (HSX: SIP) will achieve revenue of VND 8,667 billion (+11% YoY) and net profit after tax (NPAT) of VND 1,335 billion (+4.5% YoY), equivalent to an EPS of VND 6,345 per share. Based on the valuation results, we recommend a BUY rating for SIP stock with a fair value of VND 79,200 per share, representing an upside potential of 15.00% compared to the closing price on June 26, 2025.