Why did foreign investors flock to VCG shares?

Specifically, in five consecutive sessions, foreign investors bought VCG shares with a trading volume and value amounting to billions of VND. On February 14, they purchased 216,000 VCG shares worth VND 4.6 billion. On February 13, they bought 1.05 million shares with a total value of VND 22.8 billion. On February 12, foreign investors purchased 2.97 million shares, with a total transaction value reaching VND 44.7 billion. On February 11, they acquired 1.4 million shares, with a total transaction value of VND 29 billion. On February 10, foreign investors bought 1.2 million shares, with a total transaction value of VND 24.7 billion.

VCBS claims that because of Vinaconex's substantial development potential, overseas investors have become interested in VCG shares. This is because, as the government speeds up the distribution of public investment, it has a good chance of landing contracts for infrastructure construction between 2025 and 2030. Furthermore, it is anticipated that recent advancements in the Amatina Cát Bà project will boost long-term profit margins and hasten the project's sales debut.

In the construction sector, increased public investment positively impacts Vinaconex’s backlog, reinforcing construction and installation activities as the primary revenue driver. This ensures a stable project pipeline for the company from 2025 to 2027, thanks to major contracts such as the Long Thành Airport package 5.10 and several sub-projects under the North-South Expressway project.

With its extensive experience, VCG is considered to have a superior winning rate for government-funded transportation infrastructure projects compared to other listed companies in the industry.

Infrastructure development is one of the government’s key priorities for 2025-2030 to achieve economic growth and attract investment. This presents a strategic opportunity for Vinaconex to leverage its strengths. The company has established the VINACONEX Training Center, focusing on high-speed rail and urban railway specializations, to prepare a qualified workforce for the North-South high-speed railway project, which is expected to require a total investment of approximately VND 1.7135 trillion.

Real Estate (RE) Segment

After completing the handover of the Green Diamond project, Vinaconex is set to generate significant cash flow from two upcoming real estate projects: the extended Hòa Bình Boulevard Urban Area (49 hectares) and Vinaconex Móng Cái (44 hectares). With 637 and 782 low-rise units, respectively, these projects are expected to generate approximately VND 5 trillion in cash flow between 2025 and 2027.

"The business performance of these projects is expected to improve considerably, supported by higher land prices due to the vibrant Móng Cái real estate market, which benefits from enhanced regional infrastructure connectivity. Furthermore, the Vân Đồn – Móng Cái Expressway, Hải Phòng – Hạ Long – Vân Đồn – Móng Cái Expressway, Vân Đồn International Airport, and the well-planned Golden Avenue Móng Cái project will contribute to the area's real estate market boom," according to VCBS.

Industrial Real Estate Outlook

VCG's industrial real estate sector is another factor propelling the company's long-term growth prospects. In addition to running the Hòa Lạc 2 High-Tech Park, which is currently 35% occupied, Vinaconex is growing its land bank by constructing the Đông Anh Industrial Park and the Sơn Đông Industrial Cluster. With all of its leasing space now reserved, the Sơn Đông Industrial Cluster, which started building in October 2024, exhibits high absorption rates in the Hanoi market. When these two projects are operational by late 2025 or early 2026, the company should see positive cash flow.

Assessing VCG's stock, VCBS maintains that the company has substantial long-term growth potential, with key business drivers set to support its stock performance over time.