<\/div><\/div>Becamex IJC: Strong profit growth, but market still cautious about growth conversion<\/strong><\/p>
Keywords: <\/strong> Becamex IJC, IJC, profit growth, cash flow, land bank, capital increase, dividend, infrastructure investment, Binh Duong real estate, stock valuation<\/p>
Amid ongoing volatility in the real estate market and industry stocks, Becamex IJC (stock code: IJC) is a rather special case. The company owns a significant land bank in the former Binh Duong area and has established a reputation as a real estate stock with a relatively stable dividend policy. However, the stock market does not only focus on current performance but also assesses the company's ability to convert development prospects into actual value. Therefore, despite IJC's relatively positive recent operating results, the stock price still reflects investor caution.<\/p>
From the end of September 2024 to the end of May 2025, IJC shares fell about 31.1%, from VND 14,200 to VND 9,790 per share. Notably, the stock has been trading below the MA200 line for most of the time, reflecting a still weak medium-term trend and a lack of real market capital inflows.<\/p>
Meanwhile, the company's operating performance has improved significantly. In Q1 2026, Becamex IJC recorded revenue of VND 2,535 billion, up 69.4% year-on-year; after-tax profit reached VND 1,043 billion, up 129.4% year-on-year. This profit represents about 19.3% of the full-year target of VND 5,410 billion, indicating that if project progress is maintained, the outlook for achieving the target remains positive.<\/p>
However, investors typically look beyond short-term profit figures. For real estate companies, revenue and profit growth are only meaningful when accompanied by capital control, improved asset turnover, and sustained cash flow generation. This is precisely where IJC still leaves the market cautious.<\/p>
Notably, despite profit improvement, Becamex IJC's operating cash flow has been persistently negative. Cash flow was -VND 7,969 billion in 2024; -VND 2,323 billion in 2025; and still -VND 1,218 billion in Q1 2026.<\/p>
By nature, negative cash flow is not uncommon for real estate companies because their business model typically requires upfront investment in land, site clearance, infrastructure, and construction before revenue can be recognized. However, if this situation continues for several periods, investors question the speed of asset conversion into cash and financial risks in the new investment cycle.<\/p>
In other words, the market is not only concerned about how much IJC earned, but also "where these profits come from" and "how long it takes to convert into actual cash flow." This criterion is increasingly important in a context where investment preferences have changed: if capital use efficiency does not improve accordingly, investors will no longer easily accept growth at any cost.<\/p>
According to the latest report, as of the end of 2025, Becamex IJC had advanced 12 projects with a cumulative land bank of over 54 hectares. At a time when many real estate companies struggle to accumulate new land reserves, this remains a noteworthy foundation.<\/p>
Most of the company's land bank is located in the former Binh Duong area, now part of Ho Chi Minh City. This area hosts large industrial parks such as VSIP, My Phuoc, and Tan Dong Hiep. If urbanization and infrastructure expansion proceed as expected, these lands could be a long-term advantage supporting the company's development space.<\/p>
However, a large land bank does not automatically improve operational efficiency. Becamex IJC is currently not only developing residential business but also expanding into infrastructure investment, participating or preparing to participate in large projects such as Ring Road 4 of Ho Chi Minh City and the Ho Chi Minh City - Thu Dau Mot - Chon Thanh Expressway. This strategy may open new growth space but also brings greater capital needs, longer payback periods, and higher execution risks.<\/p>
If in the past IJC stock was favored for both growth and stable dividends, the current phase shows that the company's priorities are changing. From the beginning of 2023 to the beginning of 2026, the company's charter capital increased from VND 25.18 billion to VND 62.96 billion, an increase of about 150% in three years.<\/p>
In 2024, the company issued over 125.9 million shares to existing shareholders at VND 10,000 per share to raise funds. In 2025, the company continued to issue over 251.8 million shares, significantly enhancing financial resources for investment.<\/p>
Meanwhile, the dividend policy has been notably reduced. During 2018-2022, IJC's profit distribution rate was high, typically ranging from 51% to 84% of after-distribution profits; cash dividend rates were 12%, 10%, 15%, 16%, and 14% respectively. This was an important factor attracting investors, maintaining IJC's image as a "safe, stable, and cash-generating" stock.<\/p>
However, the expected dividend rate for 2025 is only about 5%. At the current stock price, the dividend yield is about 5.1%, no longer significantly superior to long-term savings rates. This indicates that the company is prioritizing capital accumulation to fund the new investment cycle rather than maintaining the previous high profit distribution levels.<\/p>
Another reason for the market's continued caution is that capital use efficiency has not kept pace with scale expansion. During 2020-2021, Becamex IJC's ROE ranged from 18.96% to 22.94%, higher than the real estate industry average at the time. This foundation helped the company achieve a higher valuation.<\/p>
However, by 2025, IJC's forward P/E is only about 9.04x, below the industry average of about 14.47x. This gap reflects the market's doubts about growth quality: capital has increased rapidly, but the profit-generating ability per unit of capital has not shown clear improvement.<\/p>
It can be said that the issue for Becamex IJC today is no longer "whether it grows" but "whether this growth is efficient enough to create sustainable value." In the long run, only when the company proves it can convert land bank, projects, and investment capital into revenue, profits, and actual cash flow will the market be willing to revalue the stock at a higher level.<\/p>
Becamex IJC is at a critical stage: operating performance has improved significantly, land bank and project portfolio remain supportive, but persistent negative cash flow, huge capital needs, and rapid capital increase are keeping the market cautious. For IJC stock, the biggest challenge is no longer expanding scale, but proving that this scale can translate into substantive efficiency.<\/p>
In this context, Becamex IJC still has development prospects, but to convert expectations into market value, the company needs to pay more attention to financial discipline, project progress, and cash flow quality. Only when these factors improve simultaneously can investor confidence return sustainably.<\/p>Introduction<\/h3>
Operating performance improved but not enough to build strong confidence<\/h3>
Persistent negative cash flow: a signal that needs explanation from growth quality<\/h3>
Land bank and expansion strategy: real advantages, but do not automatically create value<\/h3>
Rapid capital increase, dividend decline: signals of a new investment cycle<\/h3>
Valuation and capital use efficiency: measures determining market confidence<\/h3>
Conclusion<\/h3>
