PC1 Approves 15% Stock Dividend, H1 2026 Profit Jumps 54%

Overview

PC1 Group (HOSE: PC1) has approved a plan to issue 61.7 million shares to pay a 15% stock dividend for 2025, funded from audited retained earnings. The move will raise charter capital to nearly VND 4,730 billion and follows a first half of 2026 in which net profit rose 54% year-on-year even as revenue fell 12%.

Key Facts

• Board approved issuance of 61,692,801 ordinary shares, par value VND 10,000 each, for a total par value of nearly VND 617 billion.
• Dividend ratio of 15% on outstanding shares, equivalent to 100:15; shareholders receive 15 new shares for every 100 held.
• Funding source is undistributed after-tax profit from the audited 2025 financial statements.
• PC1 currently has more than 411.28 million shares outstanding and no treasury shares; post-issuance share count would rise to about 473 million.
• Charter capital is expected to reach nearly VND 4,730 billion after completion.
• H1 2026 net revenue was over VND 4,206 billion, down 12% year-on-year, while net profit reached nearly VND 478 billion, up 54%.
• PC1 shares closed at VND 20,200 on 1 October 2026, with market capitalization of more than VND 8,300 billion.

What Happened

The Board of Directors of CTCP Tập đoàn PC1 approved the implementation of a share issuance to pay the 2025 stock dividend, in line with the charter capital increase plan already approved by the 2026 Annual General Meeting of Shareholders. The issuance is expected to take place in 2026, after the State Securities Commission confirms receipt of complete issuance documentation. The record date for shareholders has not yet been announced. Fractional shares arising from the 100:15 ratio will be rounded down to the nearest whole unit and the remainder cancelled.

On operations, PC1’s reviewed consolidated financial statements for H1 2026 showed net revenue of more than VND 4,206 billion, a 12% decline from the same period last year. Net profit, however, reached nearly VND 478 billion, up 54%. The company attributed the profit growth mainly to its residential real estate segment recognizing revenue and profit from the Tháp Vàng project, which was still under development in the year-earlier period. Higher dividend and profit distributions from subsidiaries, along with foreign exchange movements, also supported results.

Market Context

PC1 trades on the HOSE and closed at VND 20,200 on 1 October 2026, giving a market capitalization of more than VND 8,300 billion. The stock sits within the construction and materials sector, with growing exposure to residential real estate through projects such as Tháp Vàng. The 15% stock dividend, if completed, would be one of the larger share-based payouts among HOSE-listed construction names this cycle, though it does not involve a cash outflow.

Strategic Significance

The stock dividend converts retained earnings into permanent equity, strengthening PC1’s capital base without cash outflow. For long-term investors, the key question is whether the profit mix shift toward residential real estate is durable. The H1 2026 result shows that a single project, Tháp Vàng, can lift group net profit by more than half even as revenue contracts, which suggests earnings are becoming more concentrated and project-timing dependent. The capital increase also positions PC1 for larger infrastructure and real estate tenders where balance sheet capacity matters.

What to Watch

• State Securities Commission confirmation of receipt of complete issuance documentation, which triggers the 2026 issuance window.
• Announcement of the shareholder record date for the 15% stock dividend.
• Progress and revenue recognition at the Tháp Vàng residential project in H2 2026.
• Whether the 12% revenue decline persists or reverses as real estate handovers scale.
• Any further charter capital increase plans tied to the 2026 AGM resolution.