Is AMY Grupo's IPO truly attractive?

AMY GRUPO recorded significant progress in scale of operations during the 2023–2025 period. Source: AMY GRUPO

According to the plan, AMY GRUPO is offering 16.1 million shares at a price of 48,900 VND per share, corresponding to a total capital mobilization of nearly 787 billion VND.

A Specialized Building Materials Industry

AMY Grupo operates in the manufacturing of floor and wall tiles. In the market, alongside AMY Grupo, several other major listed companies exist, such as An Cuong Wood, Viglacera, and Vicostone. Additionally, there is intense competition from major foreign brands.

Mordor Intelligence estimates that Vietnam's floor tile market reached approximately USD 5.9 billion in 2024 and is expected to hit USD 11.11 billion by 2029, representing a compound annual growth rate (CAGR) of 13.64%.

According to statistics from the Ministry of Construction and the Vietnam Building Materials Association, by the end of 2023, Vietnam had 83 invested floor-tilt manufacturing plants with a total capacity of 831 million m²/year. Market growth is impacted by various factors, including a narrowing output market and industry competition risks. Meanwhile, vinyl (thermoplastic) product manufacturing faces competition from China—which previously held the world's largest SPC output but has since shifted production to Vietnam—alongside risks from fluctuating raw material costs and changing market preferences.

Despite market risks and pressures, AMY Grupo's leadership remains confident in its competitive capability. Rather than focusing solely on a single product line, the company is committed to building a synchronized ecosystem of finishing materials, including floor tiles, SPC flooring, interior decorative materials, and new material lines centered around its two core activities.

Operating two plants in Phu Tho province with a total capacity of 45 million m²/year (AMY SPC Plant and Hoa Son Plant), supplying composite accessories produced on a single line at a capacity of 30,000 pieces/month, and distributing PVC resin powder, the company exports to 30 countries. The United States accounts for the largest share, establishing a solid market position while exposing the firm to tariff policy fluctuations. AMY Grupo General Director Dinh Quoc Tuan revealed that thanks to the willingness of supply chain customers to negotiate, recent tariff fluctuations—though challenging—have not stalled the company's 10% growth momentum.

According to Ms. Nguyen Thao Vy, a specialist at Vietcap (AMY Grupo's IPO advisory firm), the company maintains balanced growth across both export and domestic markets with a nationwide showroom system of over 110 stores, helping mitigate risks associated with relying on a single market. Looking broadly at trends among building material enterprises in general—and specialized groups like PTB and HSG in particular—striking a balance between domestic and international markets is the "key" to adapting to fluctuations.

No Growth Driven by Leverage

According to AMY Grupo's IPO prospectus, interest rate risks have a direct impact on capital costs, profitability, and corporate investment strategy. Rising interest rates reduce profit margins and competitiveness. Furthermore, businesses face reinvestment risks, depreciation risks of fixed assets such as bonds, and maturity mismatch risks between assets and liabilities.

AMY Grupo conducts an IPO of 16.1 million shares at 48,900 VND/share. (Illustrative photo)

According to AMY Grupo's IPO information, from January 1, 2024, to March 31, 2026, short-term receivables grew by 51.5% compared to the beginning of the period—an increase of 428.14 billion VND, reaching 1,259.71 billion VND. Inventories rose by 9.35% (up 84.18 billion VND) to 984.07 billion VND. Total debt increased by 23% (up 436.02 billion VND) to 2,328.81 billion VND, equivalent to 119.6% of total equity.

AMY Grupo stated that within its debt structure, to ensure financial resources for production and business operations, the company utilizes a combination of short-term and long-term loans. Short-term debt—carrying interest rates ranging from 3.6% to 6.8% per annum—makes up the majority, reflecting a stable financial position that does not rely on long-term debt. "We do not seek growth through leverage at all costs," emphasized Mr. Tran Tuan Dai, Vice Chairman of the Board of Directors and Deputy General Director of AMY Grupo.

For 2026, AMY Grupo targets total revenue of 9,063 billion VND and an expected net profit after tax of 935 billion VND. In Q1 2026, the enterprise reported revenue of 1,785.65 billion VND, up 36.6% year-over-year; net profit after tax reached 193.56 billion VND, up 37.3% year-over-year, fulfilling 20.7% of the full-year target, with management affirming confidence in meeting or exceeding this year's targets.

Addressing whether AMY Grupo retains growth potential after reaching such high baseline figures, Ms. Nguyen Thao Vy projected that net revenue will maintain a 23% growth rate over the next three years, with net profit after tax growing at 24% annually, driven by core business segments as well as expansion in volume and product value.

Notably, prior to the IPO, the company paid a cash dividend at a rate of 115% and a stock dividend at a rate of 22%. However, according to the 2026 plan, expected dividends range only from 25% to 40%, significantly lower than pre-IPO levels. AMY Grupo has a concentrated ownership structure, with five individuals controlling over 90% of the capital. Consequently, high cash dividends primarily reward these key shareholders, who contribute not only capital but also hold crucial roles, particularly from the Chairman of the Board. Nonetheless, this raises questions among future investors regarding how AMY Grupo will adjust its long-term growth and dividend distribution plans following the IPO and subsequent share dilution.

Investors continue to monitor AMY Grupo's IPO of 16.1 million shares at 48,900 VND per share amid a deep market correction, while the subscription window remains open until mid-August 2026.