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IDICO Corporation (IDC VN) – Q1 2026 – Rising Industrial Land Demand Supports Long-Term Growth
Summary of Q1 2026 results and outlook of IDICO Corporation JSC (IDC VN)
- IDC secured 13ha of new leasing contracts, broadly sustaining the previous quarter’s level. The large remaining leasable land bank across key manufacturing hubs enables it to serve a diversified tenant base, including high-tech, food and beverage, textile and garment, and fertilizer producers. In addition, the company continues to attract solid demand from potential Chinese tenants, suggesting that further leasing contracts could be secured in the coming quarters. Sustained leasing demand supported a 4.4% y/y increase in average leasing prices.
- However, leasing revenue recognition depends on the delivery timing of secured contracts, which typically takes 6-12 months as IDC completes the legal procedures for handover. Given that many contracts were secured late last year, handovers are expected mainly in the second half of this year, with only 5ha delivered during the quarter. Residential real estate revenue also softened, as most low-rise units at the Bac Chau Giang project in Ninh Binh had already been delivered in 2025. These impacts were partly offset by higher revenue from the energy and toll-fee businesses. As a result, net profit declined 19.0% y/y to VND338bn.
- Looking ahead, we expect FDI inflows to remain solid as global manufacturers continue to diversify production bases amid heightened global uncertainty. In 4M/2026, disbursed FDI reached USD7.4bn (+9.8% y/y), the highest level in five years. Proximity to China remains a structural advantage, enabling manufacturers to relocate selected activities while preserving access to supplier networks, cost efficiency, and operational continuity. Recent commitments from Samsung, Foxconn, and Goertek across electronics, semiconductors, and high-value manufacturing further reinforce the country’s role as a preferred production hub. Continued legal improvements, infrastructure investment, and the upgrade of IPs into higher-standard ecosystems should strengthen its competitiveness in global site-selection decisions.
- IDC is well positioned to capture rising industrial land demand. The company retains a remaining leasable land bank of 1,300ha across key manufacturing hubs, of which 390ha is currently available for lease. In addition, four new projects with a total leasable area of 910ha are expected to gradually start leasing from 2H2026 onward.
- For the last 9M/2026, we project net profit of VND2,241bn (+15.7% y/y), lifting full-year earnings to VND2,579bn (+9.6% y/y). We expect land handovers to accelerate in the coming quarters, bringing total handover area this year to 120ha, including 90ha from the five existing projects and 30ha from Vinh Quang IP in Hai Phong, which is scheduled to start leasing from 2H2026. Meanwhile, contributions from the energy and toll-fee segments are expected to remain broadly stable.
Read our previous analysis on IDC’s quarterly earnings.
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