PC1 to Divest Entire 40% Stake in Affiliate Tan Thanh by Q4 2026

Overview

PC1 Group (HOSE: PC1) has approved the transfer of its entire 40% stake in affiliate Công ty CP Tân Thanh, according to an extraordinary disclosure filed with the State Securities Commission and the Hồ Chí Minh City Stock Exchange. The board resolution, dated 29 September 2026, covers 1.2 million shares and targets completion in Q3-Q4 2026. The move follows a first half in which PC1’s net profit rose 54.2% year on year to nearly VND 477.6 billion despite a 12.3% decline in revenue.

Key Facts

• Board Resolution No. 47/NQ-PC1-HĐQT dated 29 September 2026 approved the transfer of the full 40% stake in Công ty CP Tân Thanh.
• The stake comprises 1.2 million shares, equivalent to 40% of Tan Thanh’s charter capital.
• Execution is expected in Q3-Q4 2026, with the CEO authorised to negotiate and sign the sale contract.
• H1 2026 net revenue was over VND 4,206 billion, down 12.3% year on year.
• H1 2026 net profit after tax reached nearly VND 477.6 billion, up 54.2% year on year.
• Total assets stood at nearly VND 24,846 billion as of 30 June 2026, with fixed assets at VND 9,078.3 billion, or 36.5% of the total.
• Total liabilities were over VND 15,719.1 billion, of which borrowings and finance leases accounted for VND 12,216 billion, or 77.7%.

What Happened

In the disclosure, PC1’s board said it had issued Resolution No. 47/NQ-PC1-HĐQT on 29 September 2026 to divest the company’s entire holding in Công ty CP Tân Thanh. The stake amounts to 1.2 million shares, or 40% of the affiliate’s capital, and the transaction is scheduled for the third to fourth quarter of 2026. The board delegated authority to the Tổng Giám đốc (general director) to negotiate, sign the sale contract and handle all related filings and procedures in line with law and the company charter.

The filing does not disclose the transaction value, the buyer, or the expected gain or loss on disposal. Separately, PC1 reported reviewed consolidated financial statements for H1 2026 showing net revenue of more than VND 4,206 billion, down 12.3% year on year, and net profit after tax of nearly VND 477.6 billion, up 54.2%. Management attributed the profit increase mainly to revenue and profit recognition from the Tháp Vàng residential real estate project, which was still under development in the year-earlier period, along with higher dividend distributions from subsidiaries and favourable foreign-exchange differences.

Market Context

PC1 closed at VND 20,750 on 30 September 2026 on HOSE, where the shares trade under the Construction & Materials industry grouping. The company spans infrastructure and residential real estate, and the H1 result reflects that mix: top-line weakness in construction and energy-related activity offset by property handovers at Tháp Vàng. The divestment of a non-controlling affiliate stake is a portfolio-simplification step rather than a change to the core business, and it arrives while the balance sheet remains leveraged, with borrowings and finance leases at 77.7% of total liabilities.

Strategic Significance

For long-term holders, the key question is capital allocation. PC1 is exiting a minority position in an affiliate while carrying over VND 12,216 billion in borrowings and finance leases, so proceeds from the sale, if completed, would most plausibly be directed toward debt reduction or the infrastructure and real estate projects that now drive earnings. The H1 profit growth is concentrated in a single residential project, which makes the durability of that earnings base the central issue. Divesting Tan Thanh narrows the consolidated perimeter and reduces exposure to a business outside the company’s core infrastructure and property platforms, but without a disclosed sale price the value created or destroyed by the transaction cannot yet be assessed.

What to Watch

• Disclosure of the buyer, sale price and expected gain or loss on the Tan Thanh transfer.
• Completion timing within Q3-Q4 2026 and any revision to the schedule.
• Q3 2026 consolidated results for evidence that Tháp Vàng handovers continue to support profit.
• Progress on deleveraging, given borrowings and finance leases of VND 12,216 billion.
• Any further affiliate or subsidiary divestments following the Tan Thanh resolution.