AsemconnectVietnam - Positive business results and large investment plans are raising expectations for Becamex IJC. However, stock performance shows that the market remains cautious about translating growth into tangible results.

From Positive Profits to Market Expectations
For many years, Becamex Infrastructure Development Joint Stock Company (Becamex IJC, ticker IJC) was considered a rather special case on the stock exchange. The company not only owned a large land bank in the former Binh Duong area but also built an image as a real estate stock maintaining an attractive and relatively stable dividend policy.
However, the stock market often anticipates expectations and reflects not only current results in financial reports but also expectations about future prospects.
Against the backdrop of the real estate sector failing to regain its leading position, declining market liquidity, and increasingly stringent investor expectations regarding growth quality, the performance of IJC shares has not truly reflected improvements in business operations.
From September 26, 2025 to May 25, 2026, IJC shares fell by approximately 31.1%, from VND14,200 per share to VND9,790 per share. The stock continues to trade below the long-term MA200 moving average for a relatively long period, while liquidity has not significantly improved, indicating that cautious investor sentiment persists.
It is noteworthy that this development occurred despite relatively positive business results. In the first quarter of 2026, Becamex IJC recorded revenue of VND253.5 billion, a 69.4% increase compared to the same period last year. Net profit after tax reached VND104.3 billion, a significant increase of 129.4%, and approximately 19.3% of the annual profit target of VND541 billion.
Looking solely at the growth figures, this could be seen as a positive sign after a period of significant fluctuations in the real estate market. However, the market is not only concerned with the rate of profit growth, but also with the ability to improve efficiency on an increasingly expanding scale of investment capital.
Despite the improved profit, Becamex IJC's cash flow from business operations has not changed correspondingly: a negative VND796.9 billion in 2024, a further negative VND232.3 billion in 2025, and a continued negative VND121.8 billion in the first quarter of 2026.
For real estate businesses, negative cash flow is not unusual due to the nature of having to invest capital in land and projects before recognizing revenue at a later stage. It's worth noting that when this situation persists over several periods, investors tend to be more interested in the progress of converting assets into real cash flow.
According to the 2026 annual report, by the end of 2025, Becamex IJC was implementing 12 projects with a total completed land bank of over 54 hectares. This remains a noteworthy foundation considering the difficulties many real estate businesses face in expanding their land bank.
The majority of the company's land bank is located in the former Binh Duong area, now part of Ho Chi Minh City, where large industrial parks such as VSIP, My Phuoc, and Dong An are concentrated. This is considered a long-term advantage if urbanization and infrastructure expansion continue as expected.
However, owning a large land bank does not automatically translate into profit. In fact, Becamex IJC's current strategy shows that the company is not only focusing on residential real estate but also expanding into infrastructure investment. The company is participating in or preparing to participate in large-scale projects such as the Ho Chi Minh City Ring Road 4 and the Ho Chi Minh City - Thu Dau Mot - Chon Thanh Expressway.
This simultaneously increases the need for capital, prompting the company to accelerate its fundraising plans to expand investment. At the beginning of 2023, Becamex IJC's charter capital was VND2,518 billion. After two consecutive capital increases, by the beginning of 2026, the charter capital had increased to VND6,296 billion, equivalent to an increase of approximately 150% in just three years.
Regarding the capital increase, in 2024, the company issued more than 125.9 million shares to existing shareholders at a price of VND10,000 per share, raising approximately VND1,259 billion. A year later, the company continued to offer more than 251.8 million shares and raised an additional VND2,518 billion.
Capital increases help improve financial resources and facilitate investment expansion. From a capital efficiency perspective, the market typically looks not only at the amount of capital raised but also at the rate of return on that capital. Specifically, during the 2020-2021 period, Becamex IJC's ROE fluctuated between 18.96-22.94%, higher than the real estate industry average of approximately 10.51-15.38% during the same period. However, by 2025, the company's ROE is projected to be only 9.04%, lower than the industry average of approximately 14.47%.
This indicates that the rate of capital expansion is outpacing the ability to improve profitability. When ROE declines, the impact extends beyond stock valuation and directly affects dividend policy, a factor that was once one of IJC's most attractive aspects.
Dividend Policy Changes in the New Investment Cycle
Looking back at its history, Becamex IJC once pursued a rather aggressive dividend policy. During the period 2018-2022, the company maintained a profit distribution ratio to shareholders ranging from 51-84% of total after-distribution profits. Specifically, dividends reached 12% in 2018, 10% in 2019, 15% in 2020, 16% in shares in 2021, and 14% in 2022.
Thanks to this, the stock once created an image of a company that was both growing and providing a steady cash flow to shareholders. However, as it enters a new investment cycle, the strategy has changed. In 2025, the company plans to distribute dividends at only about 5%.
If converted to current prices, the dividend yield is only around 5.1%, significantly lower than in the previous period and no longer offering a clear difference compared to long-term deposit interest rates.
Behind the dividend reduction lies a larger investment ambition. According to the 2026 plan, the Company expects to invest VND1,981 billion in equity investments in businesses, the largest of which is Ho Chi Minh City Ring Road 4 Joint Stock Company with a capital contribution of VND1,078 billion; invest VND362 billion in the construction of the upgrade and expansion project of National Highway 13 (expansion project); spend VND798 billion on the construction of civil and transportation works; and invest VND1,267 billion in the Company's real estate projects.
Furthermore, for the period 2025-2030, the total investment plan reaches VND13,262 billion.
At the General Shareholders' Meeting in early 2026, Mr. Trinh Thanh Hung, General Director of Becamex IJC, shared that the increased investment in real estate projects in 2026 mainly comes from the Sunflower 2 project. Due to the implementation of a model of selling houses under construction, the company must accelerate investment in construction to hand over to customers. The Green City project also requires completion of investment and construction before revenue is recognized.
In addition, Mr. Do Quang Ngon, Chairman of the Board of Directors, added at the meeting that Becamex IJC will transform into a General Corporation under the Becamex Group, with expected revenue exceeding VND5,000 billion and expected profit exceeding VND1,000 billion. The company will leverage the advantages of two major arterial roads in the North of Ho Chi Minh City to develop real estate projects, increase investment in land development, and raise capital to expand its scale.
However, ambition always comes with the pressure of execution. As of March 31, 2026, Becamex IJC's total debt had increased by approximately 271% compared to the beginning of 2020, reaching nearly VND1,395 billion, equivalent to about 17.1% of its equity.
This figure is not considered a high level of leverage for a real estate company. However, when compared to the rate of capital increase, the prolonged negative cash flow, and declining ROE, the market tends to closely monitor the implementation efficiency and the feasibility of investment plans. This is because the market value of a company does not only come from the size of its land bank or investment plans, but also depends on its ability to convert those resources into sustainable revenue, profit, and cash flow.
N.Nga
Source: VITIC/Dau tu Chung khoan