DCM Raises 2026 Profit Plan 83% to VND2,419 Billion on Urea, NPK Surge

Overview

Đạm Cà Mau (DCM), listed on HOSE, has raised its 2026 consolidated revenue plan by 7.4% to VND18,926 billion and its pre-tax profit plan by 83.3% to VND2,419 billion, according to a board resolution dated 4 November. The revision follows nine-month 2026 pre-tax profit of VND2,563 billion, which already exceeds the new full-year target, driven by domestic urea and NPK sales.

Key Facts

• Board resolution dated 4 November 2026 raised the 2026 consolidated revenue plan from VND17,615 billion to VND18,926 billion, an increase of VND1,311 billion (+7.4%).
• Pre-tax profit plan lifted from VND1,320 billion to VND2,419 billion, up VND1,099 billion (+83.3%).
• After-tax profit plan set at VND2,168 billion, VND986 billion above the original plan (+83.4%).
• Planned after-tax margin improves from roughly 6.7% to 11.5%.
• Urea production target raised from 926,000 tonnes to 950,000 tonnes; urea trading volume from 891,000 tonnes to 908,000 tonnes.
• Free-trade fertilizer volume plan cut from 395,000 tonnes to 310,000 tonnes; food-grade CO2 output cut from 3,700 tonnes to 900 tonnes.
• Q3 2026 net revenue reached VND5,742 billion (+92.1% year on year) with net profit of VND430 billion (+31.1%); domestic urea and NPK revenue rose 214.4% and 227.6% respectively.

What Happened

In a resolution published on 4 November, the Board of Directors of CTCP - Tổng Công ty Phân bón Dầu khí Cà Mau (Đạm Cà Mau) approved an upward revision to several 2026 production and business targets. The company raised consolidated revenue to VND18,926 billion and pre-tax profit to VND2,419 billion, with after-tax profit planned at VND2,168 billion. The resolution also adjusted physical volume targets, lifting urea production and urea trading while reducing free-trade fertilizer and food-grade CO2 volumes.

The revision rests on operating momentum rather than a one-off item. Third-quarter 2026 net revenue rose 92.1% year on year to VND5,742 billion, with net profit up 31.1% to VND430 billion, led by domestic urea and NPK consumption. For the first nine months of 2026, net revenue reached VND17,734 billion (+42.6%) and pre-tax profit VND2,563 billion (+49%), already above the original VND1,320 billion target and roughly 6% above the newly revised full-year plan.

Market Context

DCM closed at VND33,000 on 4 November 2026 on HOSE. The stock sits in the fertilizer and chemicals segment of the Vietnamese market, where earnings are sensitive to urea price cycles, gas feedstock costs, and seasonal planting demand. The company’s nine-month revenue growth of 42.6% stands out against a broader market where chemical and commodity-linked names have traded unevenly, and the urea and NPK volume gains suggest share capture in the domestic channel rather than purely price-led growth.

Strategic Significance

The scale of the profit upgrade relative to revenue — 83% versus 7% — points to margin expansion rather than volume alone, with the planned after-tax margin moving from 6.7% to 11.5%. For long-term holders, the key question is durability: the plan implies the company expects favorable urea pricing and a richer product mix through 2026, while the cut to free-trade fertilizer volume signals a deliberate shift toward higher-margin segments. Because nine-month profit already exceeds the revised target, the revision may understate full-year earnings if fourth-quarter conditions hold, leaving room for further upward revision or a stronger dividend base.

What to Watch

• Q4 2026 and full-year 2026 results, which will show whether the revised VND2,419 billion pre-tax target is comfortably exceeded.
• Monthly or quarterly disclosures on domestic urea and NPK sales volumes versus the raised 950,000-tonne and 908,000-tonne targets.
• Global urea price benchmarks and Vietnamese gas feedstock cost updates, the main swing factors for margin.
• Any further board resolutions adjusting 2026 targets or setting the 2027 plan.
• Dividend announcements and the annual general meeting schedule for 2027.