Vietnam's chemical group DGC lowers 2025 net profit goal, makes foray into real estate

Duc Giang Chemicals Group, a leading industry player in Vietnam, has set a 2025 net profit target of VND3 trillion ($116.91 million), down 3% year-on-year.

Listed on the Ho Chi Minh Stock Exchange as DGC, the firm targets VND10.38 trillion ($404.52 million) in revenue this year, up 5% year-on-year.

In the first quarter of this year, the firm posted VND2.7 trillion ($105.22 million) in revenue and VND800 billion ($31.18 million) in profit, said chairman Dao Huu Huyen at the 2025 AGM on Monday.

DGC plans to maintain a cash dividend of 30% this year, consistent with the 2024 level.

The company also intends to allocate VND1.2 trillion ($46.77 million) to the Duc Giang Nghi Son chemicals complex project in the central province of Quang Ngai, VND40 billion ($1.56 million) to expand the Tia Sang battery plant in the northern port city of Hai Phong, and VND50 billion ($1.95 million) to complete the Dak Nong alcohol factory.

Duc Giang also plans to repair and upgrade a detergent factory in the northern province of Hung Yen, expand the Dinh Vu warehouse in Hai Phong city to facilitate solvent imports, and expand an existing apatite quarry by an additional 1,000 hectares in the northern province of Lao Cai.

Notably, Duc Giang is venturing into the real estate sector with a 5.4-hectare apartment project in Long Bien district, Hanoi. The company expects to commence the project this year, featuring 1,000 apartments and 60 townhouses. It is projected to generate VND5 trillion ($194.86 million) in revenue and VND1 trillion in profit.

In addition, Duc Giang also plans develop a social housing project on three hectares of the Tia Sang battery plant land, expecting a profit of VND300-500 billion ($11.69-19.49 million).

Clarifying the company’s foray into real estate, DGC chairman Dao Huu Huyen stated at the 2025 AGM on Monday that the firm wants make use of available land for property projects rather than pursuing a multi-sector corporate model.

DGC shares have dropped 15% since early this year, closing at VND98,200 ($3.82) each on Tuesday.