Vinhomes targets record $1.9 bln profit, bets on transit-oriented development strategy

Vinhomes, a subsidiary of conglomerate Vingroup (HoSE: VIC), has outlined a record-breaking 2026 business plan, targeting net profit of VND50 trillion ($1.9 billion), up 18.7% year-on-year, as Vietnam’s largest listed developer positions for a selective recovery in the property market.

Vinhomes (HoSE: VHM) also aims to lift revenue by 62.2% year-on-year to VND250 trillion ($9.49 billion) this year, marking the highest targets in its history.

The ambitious earnings goal comes alongside a significant shareholder return plan. Vinhomes intends to distribute nearly VND24.6 trillion ($935.75 million) in cash dividends, equivalent to a 60% payout ratio, or VND6,000 ($0.28) per share.

It also plans to issue stock dividends at a 100% ratio, effectively doubling the number of shares held by existing investors.

The move signals a shift after three years of retained earnings, during which the developer conserved cash to navigate market volatility and prepare for a recovery phase.

According to its latest annual report, Vinhomes has sold a cumulative 309,000 residential units over the past 15 years, generating more than VND1,000 trillion ($37.97 billion) in total sales. As of the end of 2025, the company owns Vietnam's largest land bank, at approximately 29,500 hectares, while continuing to seek expansion opportunities.

In a letter sent to shareholders ahead of its AGM, Vinhomes chairman Pham Thieu Hoa said the property market is entering a “selective recovery” phase in 2026, characterized by a shift toward greener, more transparent and disciplined development. While regulatory reforms are expected to ease supply bottlenecks, he cautioned that legal and financial challenges would persist.

In response, Vinhomes is doubling down on transit-oriented development (TOD) projects, integrating residential areas with major transport infrastructure, and continuing its plan to develop 500,000 social housing units under the “Happy Home” brand. The developer also plans to expand its portfolio of large-scale urban developments across key cities such as Hanoi and Danang.

VHM shares ended up 4.88% to VND128,900 ($4.89) each on Tuesday.