FIC AGM Approves 5.5% Cash Dividend, Prioritizes VND 2,800B Tay Ninh Cement Project

Overview

FIC (UPCoM: FIC), the Construction Materials Corporation No. 1, held its 2026 Annual General Meeting on April 21 in Ho Chi Minh City, approving a 5.5% cash dividend and prioritizing the VND 2,800 billion Tay Ninh Cement project. The company adopted a cautious 2026 business plan with 1-2% growth targets amid expectations of higher interest rates and global market volatility.

Key Facts

• FIC’s 2026 AGM approved a 5.5% cash dividend.
• The company prioritized investment in the Tay Ninh Cement project with a total estimated capital of VND 2,800 billion.
• The Tay Ninh Cement project’s second production line has a designed capacity of 1.4 million tonnes of clinker per year, raising total plant capacity to approximately 3 million tonnes.
• FIC set 2026 consolidated revenue target of nearly VND 1,197 billion and parent company net revenue of VND 1,446 billion.
• Consolidated pre-tax profit target is VND 148 billion; parent company pre-tax profit is expected at nearly VND 100 billion.
• The company forecasts a 1-2% growth in business results compared to 2025.
• Interest rates are expected to rise from around 5% to 8% per annum, increasing FIC’s capital costs by VND 15-20 billion given its outstanding debt of approximately VND 550 billion.

What Happened

At its 2026 Annual General Meeting held on April 21 in Ho Chi Minh City, FIC’s management presented a cautious outlook for the year ahead. General Director Cao Truong Thu noted that 2026 would be more challenging than 2025 due to complex global developments and market conditions. He highlighted that interest rates are expected to rise significantly, from around 5% to 8% per annum, and oil price volatility will increase production costs. With outstanding debt of approximately VND 550 billion, the interest rate hike alone could add VND 15-20 billion to the company’s capital costs.

Despite these headwinds, FIC approved a 5.5% cash dividend and outlined strategic priorities, including accelerating investment in the Tay Ninh Cement project. The company plans to start construction on the second production line of the Tay Ninh Cement plant, with total investment of VND 2,800 billion. The new line will add 1.4 million tonnes of clinker capacity annually, bringing the plant’s total capacity to about 3 million tonnes. FIC also intends to increase capital in Phuoc Hoa FICO JSC and develop the FICO inland waterway port cluster to enhance logistics capabilities.

Market Context

FIC shares trade on UPCoM, Vietnam’s unlisted public company market. The construction materials sector has faced prolonged weakness due to a sluggish real estate market and subdued demand for finished materials like tiles. However, FIC’s cement and minerals segment has shown relative resilience. The company’s cautious 1-2% growth forecast reflects the broader industry challenges, including rising input costs and weak domestic demand. The Tay Ninh Cement expansion signals FIC’s long-term bet on infrastructure-driven demand, but near-term earnings may remain under pressure.

Strategic Significance

The Tay Ninh Cement project is FIC’s most significant capital commitment in years, representing a bet on Vietnam’s infrastructure buildout and eventual recovery in construction activity. By doubling clinker capacity to 3 million tonnes, FIC aims to capture market share in the southern region and improve economies of scale. The project’s VND 2,800 billion price tag, however, will require substantial financing, and the company’s ability to secure funding at favorable terms will be critical. The dividend payout, while modest, signals management’s commitment to shareholder returns even during a capital-intensive phase.

What to Watch

• Progress on financing arrangements for the Tay Ninh Cement project, including any debt or equity raises.
• Q2 2026 earnings release to assess whether the 1-2% growth target is on track.
• Interest rate trends and their impact on FIC’s borrowing costs.
• Updates on the Phuoc Hoa FICO capital increase and inland waterway port development.
• Cement selling prices and demand trends in the southern region.