JC&C-backed REE targets record revenue, bets on energy investment for double-digit growth

Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corp (HoSE: REE) has set a record revenue target for 2026 and outlined a strategy centered on energy investments, as it seeks to sustain double-digit growth across its core businesses.

At its 2026 AGM on Tuesday, the company announced targets for this year’s revenue at VND12.23 trillion ($464.25 million) and net profit at VND2.81 trillion ($106.82 million), up 22.2% and 11.3% year-on-year, respectively.

Energy continues to anchor REE’s earnings, contributing the largest share of profit. The segment is expected to deliver VND5.48 trillion ($207.87 million) in revenue and VND1.47 trillion ($55.61 million) in net profit, up 10% and 3.8% year-on-year.

REE chairwoman Nguyen Thi Mai Thanh said hydropower and renewable assets are being operated at full capacity to offset reduced output from fossil fuel-based generation amid geopolitical and market volatility.

With the La Niña weather pattern expected to end in 2026, REE forecasts hydropower plants will maintain a high utilization rate, supporting stable generation output.

The company plans to begin construction of 328 MW of nearshore wind capacity this year and bring 128 MW into commercial operation, aligning with its long-term goal of tripling installed capacity to 3,000 MW by 2030.

Beside energy, the mechanical and electrical (M&E) segment is projected to post revenue of VND4.67 trillion ($177.35 million), up 32.7% year-on-year, and net profit of VND226 billion ($8.58 million), up 38.1%.

REE targets signing new contracts worth VND6 trillion ($227.76 million) in 2026, with a longer-term ambition to push segment revenue beyond $1 billion, supported by projects in data centers and power plants.

Real estate is also expected to play a larger role in profit generation, particularly as energy projects require longer development timelines.

In its office leasing business, REE aims to raise occupancy to 97% through more flexible leasing strategies and pricing adjustments. Current occupancy across its portfolio stands at about 91.9%, excluding the E-Town 6 building in HCMC. Thanh noted a growing trend among tenants to reduce office space to cut costs, making occupancy the primary focus.

In property development, REE plans to complete the sale of remaining low-rise units at The Light Square project in the northern province Hung Yen, while continuing to seek tenants before starting work on the New City office project in HCMC.

The company is also setting its sight on two projects, though details have not been disclosed as feasibility studies are ongoing, Thanh stated.

The water and environmental segment is forecast to generate VND221 billion ($8.39 million) in revenue, up 27.2%, and VND346 billion ($13.13 million) in profit, slightly down 2.6% year-on-year. Other segments are expected to contribute VND84 billion ($3.19 million) in profit.

The company plans to distribute a 10% cash dividend and a 15% stock dividend for 2025. In 2026, it expects to maintain a cash dividend of up to 10% while preserving capital for expansion.

At the meeting, shareholders also approved an issuance of 500,000 shares under an employee stock ownership plan (ESOP), equivalent to about 0.09% of outstanding shares, with a three-year lock-up period.

The board also approved the appointment of two new members for the remainder of the 2023-2027 term, succeeding Alain Xavier Cany and Hsu Hai Yeh. The newly elected members are Nirukt Narain Sapru, chief representative of Jardine Matheson Limited, and Lee Liang Whye, group finance director at Singapore-listed Jardine Cycle & Carriage Limited (JC&C).

Lee also holds management roles across several companies within the Jardine ecosystem, underscoring the strategic influence of the group as a key shareholder in REE. As of the end of 2025, Platinum Victory, wholly-owned investment subsidiary of JC&C, owned about 225.8 million REE shares, equivalent to 41.7% of the company’s charter capital.

REE shares ended down 2.14% to VND68,500 ($2.6) each on Tuesday.