Company Insight

Update coverage with BUY call and target price of VND 15,500

Deo Ca Traffic Infrastructure Investment Joint Stock Company (HHV) is a leading entity in Vietnam within the sector of investment, operation management, and construction of traffic infrastructure projects. With a portfolio of 6 operational BOT projects providing solid cash flow alongside growth momentum from the construction segment, we issue a BUY recommendation for HHV stock. Based on the Sum-of-the-Parts (SOTP) valuation method, the adjusted target price is determined at VND 15,500/share.

Positive Business Results in 6M/2026 Driven by BOT Toll Collection

Cumulatively for the first 6 months of 2026, HHV recorded a net revenue of VND 1,877.2 billion (+11.6% YoY) and profit after tax of VND 389.2 billion (+20.0% YoY). In Q2/2026 alone, net revenue and profit after tax reached VND 970.3 billion (+2.5% YoY) and VND 171.8 billion (+13.5% YoY), respectively.

The core profit growth driver continues to stem from the BOT segment, with 6M/2026 revenue reaching VND 1,247 billion (+16.8% YoY). This breakthrough originates from the increase in vehicle traffic on arterial routes, led by Cu Mong station (+63.2% YoY), the Bac Giang – Lang Son expressway cluster (+24.0% YoY), Bac Hai Van (+20.5% YoY), and the Cam Lam – Vinh Hao expressway (+13.3% YoY). The BOT toll collection segment is projected to maintain a compound annual growth rate (CAGR) of about 14% during the 2026–2030 period, assuming toll fees increase by an average of 5%/year and vehicle traffic increases by 7%–10%. Accordingly, BOT revenue is estimated to reach VND 2,566 billion (+18% YoY) in 2026 and rise to VND 2,938 billion (+14% YoY) in 2027.