First Read Vinpearl JSC Q226: Quality growth driving margin expansion

Research evidence excerpt

First Read Vinpearl JSC Q226: Quality growth driving margin expansion

Forecast returns

Forecast price appreciation -0.6%

Forecast dividend yield 0.0%

Forecast stock return -0.6%

Market return assumption 9.4%

Forecast excess return -10.0%

Company Description

Vinpearl JSC, a Vingroup subsidiary, is Vietnam's largest hospitality and leisure company,

managing over 17,000 rooms in hotels, resorts and villas under its own brand and

partnerships with Marriott and Melia. It operates theme parks, entertainment complexes and

golf courses under VinWonders and Vinpearl Golf in key destinations such as Nha Trang, Phu

Quoc, Danang, Hoi An and Ha Long. Specialising in master-planned tourism destinations with

integrated accommodation, entertainment, retail and MICE facilities, Vinpearl was de-listed

from HoSE in 2011 after merging with Vincom but re-listed in May 2025.

Valuation Method and Risk Statement

We value Vinpearl using discounted cash flow (DCF) methodology, applying weighted

average cost of capital (WACC) of 9.0% and a terminal growth rate of 5.5%.

We believe company-specific risks include: 1) Strategic execution risk, including potential

misalignment in development priorities, suboptimal capital allocation and failure to capture

new business opportunities or deliver high-value offerings aligned with market demand. 2)

Cybersecurity vulnerability, such as data breaches, unauthorized access, or loss of critical

information. 3) Operating risk from underperforming investments or projects with subpar

returns. 4) Reputational risk stemming from service quality lapses or negative publicity. 5)

Regulatory compliance risk, particularly in navigating evolving local laws and licensing

requirements. 6) Human capital risk, including elevated staff turnover and challenges in