Savico chairman says major shareholders have no divestment plans

Savico, Vietnam's largest automotive distributor, has withdrawn a planned share issuance to existing shareholders after its major shareholders indicated they had no intention of reducing their stakes.

Chairman Ngo Duc Vu disclosed the information at Savico's (HoSE: SVC) 2026 annual general meeting on Thursday.

One of the key issues raised by shareholders was the company's decision to withdraw a proposal, submitted on May 14, to issue additional shares to existing shareholders to increase charter capital. The move effectively means Savico will not pursue a capital increase this year.

In response, Vu said the company had originally planned the capital raising to comply with public company requirements set by the State Securities Commission (SSC).

"However, since major shareholders have no plans to divest, the company has agreed to temporarily withdraw the proposal and is seeking alternative solutions. The SSC has also granted us a one-year extension," he added.

For 2026, Savico has adopted a cautious business plan, citing macroeconomic indicators that suggest the market could become overheated, alongside expectations of higher interest rates and inflation, which could directly affect the automotive industry.

The company targets consolidated revenue of over VND22.09 trillion (over $839 million) this year, down 21% from the VND27.81 trillion recorded in 2025.

Net profit is projected at around VND159 billion ($6.04 million), down 68% from last year's VND499 billion, mainly because 2025 earnings were boosted by gains from the transfer of its stake in the Can Gio project.

Commenting on business performance in the first four months of the year, Vu said that although the overall market had weakened and both vehicle sales and revenue had declined, profit improved from a year earlier thanks to the company's focus on higher-margin service activities.

Q1 financial results reflected that trend. During the first three months of the year, Savico had completed 29% of the year's revenue target and 21% of its full-year profit target.

Quarterly revenue from sales and services rose 16.2% year-on-year to VND6.45 trillion ($244.93 million), while net profit increased 5.7% to VND34 billion ($1.29 million).

On restructuring plans and future strategy, CEO Nguyen Hai Ha said the company had proactively divested from motorcycle and truck distribution businesses, as well as several traditional brands that were no longer efficient or held limited market share.

"Savico is focusing on businesses capable of supporting the government's green transition agenda. Brands without a clear transition roadmap or with unsuitable product structures will be restructured," Ha said.

The company is also focusing its real estate operations on service-oriented and rental properties, where occupancy rates remain healthy.

Savico plans to continue upgrading existing properties to improve rental yields and profitability. Assets located in suitable areas may be converted to support its automotive business directly.

"Properties that do not generate satisfactory returns will be reviewed for potential divestment so that resources can be concentrated on more efficient investments," Ha said.