FECON 2026 AGM: Net Profit Target Up 160%, 87.5M Share Issue

Overview

FECON Corporation (FCN) held its 2026 Annual General Meeting (AGM) on August 10, 2026, in Hà Nội, approving a consolidated net profit target of VND 250 billion, up 160% from 2025, and revenue of VND 5,600 billion, up 15%. The company also approved a plan to issue 87.5 million shares to raise capital, part of a broader financial restructuring and growth strategy for 2026–2030.

Key Facts

• Consolidated net profit target for 2026: VND 250 billion, up over 160% from 2025.
• Consolidated revenue target: VND 5,600 billion, up 15% year-on-year.
• Parent company net profit target: VND 60 billion, up 445%.
• Consolidated EPS target: VND 1,115 per share, up 455%.
• Plan to issue 87.5 million shares to raise capital.
• Backlog for construction activities: approximately VND 10,000 billion as of end of Q2 2026.
• H1 2026 revenue: VND 3,213 billion, up 49.6% year-on-year; net profit: VND 79 billion.
• Operating cash flow turned positive at VND 172 billion in H1 2026, versus negative VND 356 billion in H1 2025.

What Happened

At the AGM held on August 10, 2026, FECON shareholders approved the 2026 business plan, which includes a significant profit jump. The company’s management emphasized that the profit growth outpacing revenue reflects a focus on operational efficiency, cost control, and better project selection, prioritizing projects with favorable payment terms and cash flow.

FECON also reported strong first-half results: revenue reached nearly VND 3,213 billion, up 49.6% year-on-year, and net profit after tax was nearly VND 79 billion, a sharp increase from the same period in 2025. The company’s backlog stood at approximately VND 10,000 billion, providing revenue visibility. The AGM also approved a plan to issue 87.5 million shares to raise capital, supporting financial restructuring and investment in strategic infrastructure projects.

Market Context

FCN closed at VND 11,000 on August 10, 2026, on the HOSE. The stock has been supported by improving fundamentals, including a positive operating cash flow swing and a growing backlog. The construction sector in Vietnam is recovering, with infrastructure spending and industrial park development driving demand. FECON’s focus on high-margin projects and financial restructuring aligns with broader market trends favoring companies with strong cash generation and strategic positioning.

Strategic Significance

The 2026 targets and capital raise signal FECON’s commitment to scaling up in strategic infrastructure sectors, including industrial parks and renewable energy. The company’s backlog of VND 10,000 billion provides a solid foundation for revenue growth, while the profit target suggests margin improvement through better project selection and cost control. The share issuance will strengthen the balance sheet, enabling FECON to fund new projects and reduce debt, which is critical in a capital-intensive industry. Long-term investors should view this as a strategic pivot toward higher-value projects and financial discipline.

What to Watch

• Q3 2026 earnings release, expected in October 2026, to confirm margin improvement and cash flow trends.
• Details of the share issuance, including pricing and timeline, and its impact on EPS and ownership structure.
• Progress on the Danh Thắng – Đoan Bái industrial park project and other key infrastructure ventures.
• Execution of the 1,000MW wind power project in Laos, proposed with a global fund manager.
• Quarterly updates on backlog and new contract wins, particularly in high-margin segments.