Becamex IJC Doubles Subsidiary Charter Capital for Highway Projects

Overview

Becamex IJC (IJC) has approved a plan to increase the charter capital of its wholly-owned subsidiary Xay dung IJC from VND 20 billion to VND 43 billion, injecting VND 23 billion in August 2026. The funds will finance equipment purchases and working capital for construction projects, including major highways and industrial park infrastructure. This move comes as IJC reported a 32% drop in Q2 2026 net profit but a 33% rise in H1 profit.

Key Facts

• IJC’s board passed Resolution No. 39/NQHĐQT on August 2026 to raise Xay dung IJC’s charter capital from VND 20 billion to VND 43 billion.
• The additional VND 23 billion comes from owner’s equity contributions, with VND 17 billion for machinery and equipment and VND 6 billion for working capital.
• The subsidiary targets 2026 revenue of VND 368 billion, supported by projects like the HCMC – Thủ Dầu Một – Chơn Thành Expressway and Ring Road 4 HCMC.
• Q2 2026 net revenue reached VND 235 billion, up 35% year-on-year, driven by real estate sales of VND 118 billion (triple the prior year).
• Q2 net profit fell 32% to VND 86 billion, impacted by a 5.4x surge in cost of goods sold to VND 127 billion.
• H1 2026 net profit rose 33% to VND 190 billion on revenue of VND 489 billion (up 50%).
• IJC’s 2026 targets are consolidated revenue of VND 2,454 billion and after-tax profit of VND 541 billion; H1 achieved 20% of revenue and 35% of profit targets.

What Happened

Becamex IJC, listed on HOSE, announced via board resolution that it will increase the charter capital of its subsidiary Xay dung IJC from VND 20 billion to VND 43 billion. The VND 23 billion injection, sourced from owner’s equity, is scheduled for August 2026. Of this, VND 17 billion will be used to purchase construction machinery and equipment for infrastructure projects, including the HCMC – Thủ Dầu Một – Chơn Thành Expressway and Ring Road 4 HCMC, while VND 6 billion will supplement working capital for civil and transport infrastructure construction.

The company stated that the capital increase will help ensure construction progress on these key projects and enhance its bidding capacity for infrastructure packages in the 2026–2030 period. In its Q2 2026 financial report, IJC posted net revenue of VND 235 billion, up 35% year-on-year, but net profit declined 32% to VND 86 billion due to a sharp rise in cost of goods sold. For the first half, net profit increased 33% to VND 190 billion, though this represents only 35% of the full-year target.

Market Context

IJC shares closed at VND 7,290 on August 22, 2026, reflecting a modest valuation in the real estate and infrastructure sector. The company’s H1 performance shows strong revenue growth but compressed margins, with Q2 profit falling despite higher sales. The capital injection into its construction subsidiary aligns with Vietnam’s infrastructure push, particularly highway projects in the southern region. IJC’s diversified revenue from real estate and financial income (interest on deposits) provides some buffer, but the reliance on project execution and cost control remains critical.

Strategic Significance

This capital increase strengthens IJC’s construction arm, enabling it to participate in large-scale infrastructure projects that are central to Vietnam’s development plans. By equipping Xay dung IJC with better machinery and working capital, IJC aims to improve project delivery and bidding competitiveness, potentially securing long-term revenue streams. The move also signals management’s commitment to expanding its infrastructure footprint, which could support future earnings growth if executed efficiently. However, the recent profit decline highlights execution risks and cost pressures that investors should monitor.

What to Watch

• Q3 2026 earnings release to see if margin recovery occurs and whether profit growth resumes.
• Progress updates on the HCMC – Thủ Dầu Một – Chơn Thành Expressway and Ring Road 4 HCMC projects, including any delays or contract awards.
• Utilization of the VND 23 billion capital injection and its impact on Xay dung IJC’s revenue and profitability.
• IJC’s ability to meet its full-year 2026 targets of VND 2,454 billion revenue and VND 541 billion profit, given H1 achievement levels.
• Any further capital raises or related-party transactions that could affect minority shareholders.