Searefico broadens industrial and renewable energy footprint

Searefico broadens industrial and renewable energy footprint

Searefico Joint Stock Corporation, the Vietnamese mechanical and electrical engineering group, is targeting higher earnings in 2026 by expanding its presence in industrial and renewable energy projects.

On May 19, the company unveiled its 2026 business plan with targets of VND2.3 trillion ($88.5 million) in new contract bookings, $61.5 million in revenue, $1.85 million in consolidated earnings before tax, and $1.5 million in consolidated earnings after tax.

To realise these goals, the Board of Management has outlined three operational focal points. First, Searefico prioritises projects in industrial, logistics, automation, and green energy sectors where Searefico commands competitive advantages and higher margins. Second, the company will reinforce its position as a leading engineering, procurement, and construction (EPC) contractor offering comprehensive turnkey solutions. Third, the company will boldly invest in projects of long-term strategic value in line with the Board-approved pivot roadmap.

A solid foundation for this plan is the carried-forward backlog of nearly $76.9 million, equivalent to over 120 per cent of the targeted revenue for 2026.

In addition, Searefico will prioritise expanding Searee Industrial Building in Hoa Khanh Industrial Zone, Danang. The venture is expected to commence operations by the end of the second quarter of 2026, while researching potential industrial real estate investments for the next cycle.

In 2025, Searefico's new contract bookings reached $85 million, representing a 6.5 per cent increase on-year, while executed revenue rose 11.5 per cent to $46.5 million. Meanwhile, consolidated earning before tax grew nearly 4.7 times to $1.2 million, and consolidated net earning after tax reached $946,000, surging over 20-fold from a year ago.

The mechanical and electrical sector, the backbone of Searefico's ecosystem, recorded a 40 per cent revenue increase and a 116 per cent profit jump compared to 2024, with a prominent project portfolio spanning 5-star Marriott-standard resorts in Quang Nam, Danang, Hanoi, and Ho Tram, Hung Ha Medical Complex, and Movenpick Halong Hotel.

The industrial real estate sector maintained its sustainable growth path with profits doubling, reinforcing that strategic warehouse leasing remains a highly profitable and stable revenue stream. Searee, a member of Searefico, entered the fast-moving consumer goods distribution market and generating an initial revenue of $992,000 as of December 31, 2025.

Regarding asset quality, the highlight was efficient working capital management: short-term receivables decreased by 6.3 per cent to $26.9 million despite rising revenues, demonstrating significantly improved debt recovery capabilities. Concurrently, long-term assets surged by 40.9 per cent to $20.2 million, reflecting the company's commitment to expanding capacity in preparation for upcoming growth cycles.

Based on the audited 2025 financial results, the board will submit a proposal to the General Meeting of Shareholders for a cash dividend payout of 1.9 US cents per share for 2025, equivalent to 5 per cent of par value. For the 2026 plan, the Board also proposes maintaining a similar dividend level if profit targets are met.

The board has set out a deep transformation roadmap for 2026–2030. Searefico will complete its transition into a "Pure Holding" corporate governance structure, clearly separating ownership from executive management to enhance system-wide transparency and accountability. Concurrently, AI will be integrated comprehensively into corporate governance, manufacturing, bidding, and supply chain management to maintain its competitive edge in the digital era.

VIR