VPI Plans Full Divestment of 35% Stake in Associate Company

Overview

Van Phu Real Estate Development Corporation (VPI) has announced plans to divest its entire 35% stake in its associate company, Van Phu Trade Investment Development JSC. The divestment involves 965,300 shares and will sever the associate relationship. This strategic shift comes as VPI reported a sharp decline in Q1 2026 net profit, falling 81.4% year-on-year to 26.5 billion VND.

Key Facts

• VPI plans to transfer all 965,300 shares, representing 35% of charter capital, in Van Phu Trade Investment Development JSC.
• After the transfer, Van Phu Trade Investment will no longer be an associate of VPI.
• Van Phu Trade Investment was established in November 2015 with initial charter capital of 275.8 billion VND.
• On June 5, 2026, VPI’s board approved an additional capital contribution of 1.2 million shares to Van Phu Hotel Investment and Management JSC, raising its stake to 30%.
• On June 2, 2026, VPI approved the establishment of a wholly-owned subsidiary, Van Phu Investment Consulting LLC, with charter capital of 10 billion VND.
• Q1 2026 net revenue was 287.4 billion VND (+15.6% YoY), but net profit fell 81.4% to 26.5 billion VND.
• VPI’s 2026 full-year targets are 4,500 billion VND in revenue and 720 billion VND in net profit; Q1 achieved only 6.4% and 3.7% of those targets, respectively.

What Happened

Van Phu Real Estate Development Corporation (VPI) announced via a corporate disclosure that its board has approved the divestment of its entire 35% stake in Van Phu Trade Investment Development JSC, an associate company. The transaction involves 965,300 shares, and upon completion, Van Phu Trade Investment will cease to be an associate of VPI. The company did not disclose the expected transaction value or timeline.

Separately, VPI has been active in other corporate actions. On June 5, the board approved an additional capital contribution to Van Phu Hotel Investment and Management JSC, a subsidiary, by purchasing 1.2 million shares to increase ownership to 30%. On June 2, the board also approved the establishment of a wholly-owned consulting subsidiary with 10 billion VND in charter capital.

Market Context

VPI shares closed at 62,400 VND on July 11, 2026, down 0.95% with volume of 671,300 shares on HOSE. The stock has been under pressure following the weak Q1 earnings report, which showed a steep 81.4% decline in net profit despite a 15.6% revenue increase. The divestment plan may be seen as an effort to streamline operations and focus on core real estate development, but the low achievement of annual targets (3.7% of profit target) raises concerns about near-term performance.

Strategic Significance

The divestment of the associate stake suggests VPI is rationalizing its portfolio to concentrate on its core real estate development business and recent investments in hotel management and consulting services. The move could free up capital and reduce complexity, but the lack of disclosed transaction value makes it difficult to assess the financial impact. The sharp profit decline in Q1 highlights execution risks, and the company’s ability to meet its ambitious 2026 targets remains uncertain.

What to Watch

• Disclosure of the transaction value and buyer for the 35% stake in Van Phu Trade Investment.
• VPI’s Q2 2026 earnings report to gauge whether the profit decline is temporary or structural.
• Progress on the new consulting subsidiary and its contribution to revenue.
• Any further asset sales or capital-raising activities to support the 2026 business plan.
• Market reaction to the divestment announcement and subsequent filings.