An Cuong raises annual targets due to property market recovery

During An Cuong’s AGM on May 7, the company board announced revised guidance that reflects a new phase of growth for the wood industry.

An Cuong now targets net revenue of $212 million, a 15 per cent increase on-year. Profit after tax is projected to reach $24.16 million, a 20 per cent rise on-year.

These figures replace the more conservative initial targets of $192.48 million in revenue and $22 million in profit set amid global economic uncertainty, which represent a 4.4 per cent and 9.2 per cent jump, respectively.

An Cuong now targets net revenue of $212 million, representing a 15 per cent increase on-year

The upward revision is also supported by strong financial results in the first quarter of 2026, where profit after tax rose by 31.6 per cent compared to the same period in 2025.

Le Duc Nghia, chairman of the Board of Directors at An Cuong, noted that the company expected a robust construction pipeline from major real estate developers such as Vingroup and Sun Group to drive the growth trajectory this year.

“Domestically, the real estate market began recovering in 2025, and 2026 is expected to be even stronger than 2025, and significantly better than 2023 through 2024. Currently, the number of quotations we submit to projects has increased fourfold compared to the same period last year. This indicates that we are entering a new cycle, and there is no need to be concerned about the upcoming outlook,” he said.

While domestic demand is the primary catalyst, the company's export revenue has remained stable despite geopolitical pressures, reaching $6.04 million in the first quarter.

“Export will continue to expand. In May, An Cuong will participate in an exhibition in Shanghai to open access to the Dubai market, followed by an exhibition in Dubai, and we will also further expand into Japan through our partner, Sumitomo,” Nghia added.

Regarding recent global market disruptions, the board views tensions in the Middle East and US tariff shifts as temporary hurdles.

In 2025, US exports accounted for approximately 12 to 13 per cent of total revenue, which limits the company’s exposure to changes in American trade policy. Nghia noted that countervailing taxes in the United States have not significantly hindered operations, as American partners are currently being reimbursed for these costs.

A central pillar of the 2026 strategy is the opening of a $120 million factory in Dong Nai. The facility is designed to produce raw boards, which are currently sourced from a Sumitomo plant in Long An province that is operating at full capacity.

According to internal estimations, the plant is expected to commence production in November this year.

At full capacity, it is projected to generate annual profits between $10 million and $12 million, with an estimated internal rate of return of 15 per cent.

The facility will dedicate at least 65 per cent of its output to serve internal production requirements, while the remaining 35 per cent will be sold to Sumitomo for export.

Following a 23 per cent cash dividend for 2025, An Cuong has proposed a minimum 20 per cent payout for 2026. The company’s management expects to increase these ratios by 2027 as new revenue streams from the Dong Nai factory and recovered real estate assets begin to materialise on the balance sheet.

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