Binh Tay Steel Wire Chairman Resigns Amid Delisting Risk, 2026 Profit Target Slashed

Overview

Binh Tay Steel Wire (VDT) announced the resignation of Chairman Le Hai Tu on April 14, 2026, amid a regulatory warning that the company may lose its public company status due to insufficient charter capital. The firm also set a cautious 2026 profit target of VND 1.2 billion, down 41% from 2025, despite exceeding its 2025 targets.

Key Facts

• Chairman Le Hai Tu resigned on April 14, 2026, citing personal reasons; he holds 94,760 shares (4.82% of charter capital).
• VDT’s charter capital is VND 19.7 billion, below the VND 30 billion minimum required for public company status.
• The State Securities Commission (UBCKNN) gave VDT one year from February 4, 2026 to remedy the capital shortfall or face delisting.
• 2026 pretax profit target is VND 1.2 billion, a 41% decline from 2025’s VND 2.04 billion.
• 2026 revenue target is VND 90 billion, up 8% from 2025’s VND 83.65 billion.
• 2026 sales volume target is 3,600 tons, up 1.46% from 2025.
• The company proposes to elect Hoang Ngoc Chien, a VNSTEEL legal executive, to the board to replace Tu.

What Happened

On April 14, 2026, Binh Tay Steel Wire (VDT) received the resignation of Chairman Le Hai Tu, who stated personal reasons for stepping down. The company has not yet announced a replacement but has proposed electing Hoang Ngoc Chien, currently Head of Legal at VNSTEEL and a board member of VICASA, to the board. Tu’s departure comes as VDT faces a regulatory deadline to increase its charter capital from VND 19.7 billion to at least VND 30 billion to maintain public company status, as mandated by the Securities Law.

Simultaneously, VDT released its 2026 business plan, projecting revenue of VND 90 billion (+8%) but pretax profit of only VND 1.2 billion, a 41% drop from the VND 2.04 billion achieved in 2025. The company exceeded its 2025 targets, with revenue 11.5% above plan and profit 2.1% above. Despite the profit decline, VDT indicated it may still pay cash dividends to shareholders.

Market Context

VDT trades on the UPCoM exchange and has a market capitalization of approximately VND 50 billion. The steel sector in Vietnam faces headwinds from global oversupply and weak domestic demand, though VDT’s niche in steel wire mesh may offer some insulation. The stock has been thinly traded, and the delisting risk adds uncertainty. The resignation of the chairman further clouds governance stability.

Strategic Significance

For long-term investors, VDT’s situation highlights the challenges faced by small-cap companies on UPCoM with limited capital. The delisting risk could reduce liquidity and force a restructuring. The appointment of Hoang Ngoc Chien, with his VNSTEEL background, may signal an attempt to leverage state-owned enterprise connections for capital or business support. However, the sharp profit decline target suggests management expects margin compression or higher costs in 2026.

What to Watch

• VDT’s ability to raise charter capital to VND 30 billion within the one-year deadline.
• Shareholder approval of the board changes at the upcoming AGM.
• Q1 2026 earnings report to assess whether the profit decline trajectory is materializing.
• Any strategic moves such as asset sales or capital injections from VNSTEEL.
• Trading volume and price action around the delisting deadline.