CII Boosts PC1 Stake to 11.09%, Books Unrealized Gain of VND 113B

Overview

CII (HOSE: CII) has increased its ownership in PC1 Group (PC1) to 11.09%, becoming the second-largest shareholder. The investment has generated an unrealized gain of over VND 113 billion, as PC1’s share price has risen more than 20% since CII began accumulating shares in June.

Key Facts

• CII holds 45.61 million PC1 shares, equivalent to 11.09% of charter capital.
• Initial investment cost: VND 738.5 billion for 36.9 million shares (average cost ~VND 20,000/share).
• Fair value of the stake as of June 30: VND 851.8 billion, yielding an unrealized gain of VND 113.3 billion (+15%).
• CII started buying PC1 shares in early June via subsidiary CII Invest, acquiring 3.9 million shares initially.
• By end-June, CII held 8.97% of PC1, becoming the second-largest shareholder after former Chairman Trịnh Văn Tuấn.
• PC1’s share price closed at VND 21,650 on July 30, up over 20% from the May-June range of VND 18,000-20,000.
• CII’s board approved further increases in its stake, citing PC1’s stabilized operations.

What Happened

According to CII’s consolidated financial report for Q2, the company held nearly 36.9 million PC1 shares at cost of over VND 738.5 billion. The fair value, based on the June 30 closing price, exceeded VND 851.8 billion, resulting in an unrealized gain of more than VND 113 billion—a return of over 15%.

CII began its presence as a major shareholder in early June when its subsidiary CII Invest purchased nearly 3.9 million shares. Since then, the group has continuously accumulated shares, reaching 8.97% by end-June. The average purchase price was around VND 20,000 per share, near the stock’s one-year low. CII has stated this is a financial investment and it does not intend to participate in PC1’s management, including board nominations.

Following CII’s involvement, PC1’s share price improved over 20%. Recently, CII increased its holding to 45.61 million shares, or 11.09% of capital. PC1, formerly a state-owned enterprise specializing in power transmission infrastructure, has undergone leadership changes after former Chairman Trịnh Văn Tuấn was prosecuted in May. His daughter, Trịnh Khánh Linh, was elected Chairwoman at an extraordinary meeting. CII’s board approved further stake increases, citing PC1’s stabilized operations and potential synergies.

Market Context

CII (HOSE: CII) closed at VND 13,400 on July 30, 2026. PC1 (HOSE: PC1) closed at VND 21,000 on July 31, down 2.08% with volume of 1,058,200 shares. The stake increase comes amid broader market interest in infrastructure and energy sectors. CII’s move aligns with its strategy to diversify into energy-related infrastructure, leveraging PC1’s expertise in power transmission projects.

Strategic Significance

For long-term investors, CII’s increased stake in PC1 signals confidence in the company’s recovery and growth prospects. PC1’s core business in power transmission infrastructure aligns with Vietnam’s energy transition and grid modernization plans. CII’s financial backing and potential operational synergies could enhance PC1’s project execution capabilities. However, CII’s stated passive investment stance suggests it may seek financial returns rather than operational control, which could limit strategic integration.

What to Watch

• Further stake increases by CII or its subsidiaries in PC1.
• PC1’s Q3 earnings report to assess operational stability under new leadership.
• Any regulatory approvals or disclosures related to the stake changes.
• PC1’s project pipeline and order book for power transmission contracts.
• CII’s own financial performance, especially its ability to manage debt costs.