Agro-giant invests VND220 billion in Vingroup stock, eyeing market trends

An Giang Agricultural Products and Food Import-Export Company (AFiex), a major agricultural enterprise in Vietnam, has disclosed a significant investment of VND220 billion (approximately $8.6 million) in the shares of Vingroup (VIC) in its second-quarter 2026 financial report. This move signals a strategic shift as AFiex appears to be consolidating its investment portfolio by divesting from other companies. In the second quarter of 2026, AFiex liquidated its stakes in Phu Quoc Tourism Investment and Development, Lien Hiep Real Estate Investment and Business, and Saigon Anpha Real Estate Exchange. The entirety of its business securities portfolio now consists of investments in Vingroup stock. This concentrated investment strategy comes at a time when Vingroup's stock (VIC) has experienced substantial growth over the past year, although its momentum has moderated in the most recent quarter, aligning with broader market trends. While individual investors may express caution about purchasing VIC at peak prices, AFiex's decision suggests a strong conviction in Vingroup's future prospects. The financial statements indicate that the fair value of this investment is equivalent to its book value, with no significant unrealized gains or losses recorded as of the end of the quarter. Operationally, AFiex reported VND704 billion in net revenue for Q2 2026, a slight decrease of about 1% compared to the same period last year. Gross profit also declined to over VND16 billion. However, driven by a substantial increase in financial income and reduced selling expenses, the company posted a post-tax profit of nearly VND8.9 billion, a 39% increase year-on-year. For the first six months of the year, AFiex achieved VND1.589 trillion in net revenue, up 56%, and a post-tax profit of nearly VND26.9 billion, a 2.4-fold increase from the previous year. AFiex, headquartered in An Giang province, has a charter capital of VND350 billion and operates in the procurement, processing, and export of food, agricultural products, and seafood, as well as animal feed production and forestry product processing. The company's substantial investment in Vingroup, a leading conglomerate in Vietnam, is expected to be closely watched for its impact on both AFiex's performance and the broader market sentiment.