DCM Q1 Net Profit Surges 91% on Global Urea Boom; Mirae Asset Raises Target to 47,000 VND
This Aveluro analysis covers DCM (- Tổng Công ty Phân bón Dầu Khí Cà Mau) in the Chemicals sector. The classified event type is earnings beat, with positive sentiment and a deterministic market-impact score of 9.8/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from CafeF - Doanh nghiệp, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
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Overview
Petrovietnam Ca Mau Fertilizer (DCM) reported a 91% surge in net profit to 789 billion VND for the first quarter of 2026, propelled by elevated global urea prices and robust export volumes. The company’s revenue rose 55% year-on-year to 5,286 billion VND, with urea exports reaching 177,000 tonnes. Mirae Asset subsequently raised its target price for DCM to 47,000 VND, maintaining a ‘Hold’ recommendation.
Key Facts
- DCM’s Q1/2026 net profit reached 789 billion VND, up 91% year-on-year.
- Revenue for the quarter was 5,286 billion VND, a 55% increase from Q1/2025.
- Urea export volume hit 177,000 tonnes, up 19% year-on-year.
- Urea export revenue rose 34% to 1,866 billion VND, with gross margin improving to 41% from 36%.
- NPK revenue grew 56% to 815 billion VND, with sales volume up 47%.
- DCM completed 69% of its full-year urea export volume target and 67% of its net profit target in Q1.
- Mirae Asset raised its target price for DCM to 47,000 VND, implying a 7% upside from the current price of 43,750 VND.
What Happened
DCM reported its Q1/2026 financial results, showing a sharp increase in profitability driven by the global urea price rally. According to the company’s filing, net profit rose 91% to 789 billion VND, while operating profit more than doubled to 816 billion VND. The strong performance was fueled by a 34% increase in urea export revenue, as global supply disruptions from Russia and the Middle East pushed prices higher.
In addition to urea, DCM’s NPK segment also posted strong growth, with revenue up 56% and gross margin improving to 16%. The company’s fertilizer trading business saw a near six-fold jump in revenue to 1,489 billion VND. Mirae Asset noted that DCM has already achieved 69% of its full-year urea export volume target and 67% of its net profit target in just the first quarter.
Market Context
DCM shares closed at 43,750 VND on May 17, 2026, up 1.63% on the day, with a trading volume of 2.9 million shares. The stock has been volatile in the 40,000–50,000 VND range over the past three months. DCM is listed on HOSE and has a market capitalization of approximately 23,161 billion VND. The broader fertilizer sector has benefited from the global commodity upcycle, though domestic agricultural demand remains subdued due to low crop prices and high input costs.
Strategic Significance
DCM’s strong Q1 performance underscores its ability to capitalize on favorable global urea market conditions. The company’s plan to expand plant capacity to 125% of design capacity, with an investment of 800–1,000 billion VND, signals a long-term growth strategy. Additionally, the investment in Nhon Trach port aims to enhance logistics and export capabilities. However, the reliance on volatile global urea prices and potential headwinds from weak domestic demand pose risks. The capacity expansion, expected to be completed by Q3/2027, could provide a structural uplift to earnings if global prices remain supportive.
What to Watch
- Q2/2026 earnings release to assess whether export momentum and margins are sustained.
- Global urea price trends, particularly supply developments in Russia and the Middle East.
- Progress on the plant capacity expansion project, including final investment decision and timeline.
- Domestic agricultural demand indicators, such as crop prices and farmer purchasing power.
- Any changes in foreign ownership limits or regulatory policies affecting fertilizer exports.