Vincom Retail reverses course, proposes cash dividend ahead of AGM

Vincom Retail, a subsidiary of Vingroup, has proposed a cash dividend for 2026, reversing an earlier plan to retain earnings, as the company prepares for its annual general meeting on Thursday.

The company (HoSE: VRE) said it would allocate about 2.27 trillion dong ($86.3 million) to pay a dividend of 10%, equivalent to VND1,000 per share, funded from accumulated after-tax profits as of end-2025. The payout is expected in the third quarter of 2026.

The move comes just two days before the April 23 AGM, after the board revised its earlier proposal to keep all earnings for business operations.

Vincom Retail has rarely paid cash dividends since listing in 2017, with the only previous payout in 2019 for the 2018 fiscal year at a rate of 10.5%.

The company has accumulated more than VND27.04 trillion ($1.03 billion) in retained earnings, exceeding its charter capital of VND23.3 trillion, supported by steady profit growth from VND1.31 trillion in 2021 to nearly VND6.45 trillion ($244.82 million) in 2025.

Profit target declines on paper

For 2026, Vincom Retail targets revenue of VND10.13 trillion ($384.8 million), up 14.6% year-on-year, and net profit of VND5.38 trillion ($204.14 million), down 16.6%.

However, the management said that excluding one-off income booked in 2025 - including financial contributions from Vincom Nguyen Chi Thanh mall, gains from divesting a stake in Vincom NCT Real Estate and contract compensation income - both revenue and profit would rise about 16% and 15% in 2026, respectively.

The company expects core operations to remain resilient, with leasing income and related services continuing as the main revenue drivers. Growth will be supported by improved tenant mix, higher occupancy rates, and gradual optimization of rental prices based on location and asset quality.

Customer traffic and retail spending at its shopping malls are also expected to improve, underpinning sustainable growth, the company said.

In 2026, Vincom Retail plans to open Vincom Plaza Dan Phuong in Hanoi, adding about 25,000 square metres of gross floor area.

Ecosystem peers adjust targets

The revision follows similar last-minute adjustments by parent Vingroup and affiliate Vinhomes ahead of their AGMs.

Vingroup raised its 2026 targets to VND485 trillion ($18.42 billion) in revenue and VND35 trillion ($1.33 billion) in net profit, increases of VND35 trillion and VND10 trillion (VND379.87 million), respectively.

Vinhomes also revised its plan upward, targeting VND285 trillion (10.83 billion) in revenue and VND60 trillion ($2.28 billion) in net profit, up by the same margins.

On the Ho Chi Minh Stock Exchange (HoSE), VRE shares closed Tuesday at VND29,300 (over $1) apiece.