In a recent discussion on investor relations (IR), Duong Thanh Danh Francois, standing vice chairman of PVI Insurance (HNX: PVI), said IR should go beyond providing accurate and timely disclosures and should also help the market correctly assess the company’s value.

The message came as PVI’s business performance is running well ahead of the year's plan. In the first six months of 2026, the company posted pre-tax profit of nearly VND1,240 billion ($47.4 million), compared with a full-year target of VND1,243 billion. This means PVI achieved around 99.7% of the year's profit goal after just half a year, with only about VND3.4 billion ($129,990) remaining to reach the target.

The near-100% completion rate should be viewed in the context that PVI set a relatively cautious 2026 pre-tax profit target of VND1,243 billion, about 15% lower than its 2025 result. Therefore, reaching the target after six months reflects both strong business performance and the impact of a conservative baseline.

However, some recent quarterly indicators showed signs of slower improvement. In the second quarter alone, net profit from business operations increased only slightly year-on-year, while gross profit margin declined from around 20.5% to 17.2%.

During the first half, claims expenses for original insurance rose to more than VND3,656 billion ($139.78 million), although reinsurance recovery revenue also increased significantly. These developments suggest that results in subsequent quarters will provide a clearer assessment of PVI’s ability to sustain growth momentum throughout 2026.

From management’s perspective, PVI’s “value” extends beyond its non-life insurance business. The company currently operates on three main pillars: PVI Insurance, Hanoi Re and PVI Asset Management (PVI AM), covering insurance, reinsurance and asset management.

PVI Insurance remains the core business unit. According to company management, the unit recorded total revenue of VND27,266 billion ($1.04 billion) and pre-tax profit of VND1,066 billion ($40.76 million) in 2025, while maintaining its leading position in Vietnam’s non-life insurance market.

Another layer of value lies in PVI’s shareholder structure and governance foundation. According to an April 2026 report by Guotai Junan Vietnam, PVI has a relatively concentrated ownership structure. HDI Global owns 42.38% of PVI, Petrovietnam holds 35%, while free float accounts for around 10%, with the remainder held by other institutions.

The two largest shareholders therefore control more than 77% of the company. According to PVI’s leadership, HDI Global supports the company with international industrial insurance expertise, risk management, reinsurance capabilities, and portfolio management.

As of the end of June 2026, PVI’s consolidated total assets reached VND46,450 billion ($1.78 billion), up around 4.4% from the beginning of the year, while shareholders’ equity stood at VND9,475 billion ($362.26 million), rising around 11%.

Profit target almost achieved after six months

In 2025, according to audited consolidated financial statements, PVI recorded service revenue of more than VND27,319 billion ($1.04 billion), up nearly 34% year-on-year. Net revenue reached VND9,546 billion ($364.98 million), increasing more than 23%.

Pre-tax profit stood at nearly VND1,460 billion ($55.82 million), up nearly 29%, while after-tax profit reached VND1,152 billion ($44.05 million), also rising more than 29%.

For 2026, PVI set a pre-tax profit target of VND1,243 billion ($47.52 million). However, after only six months, the company had already achieved nearly VND1,240 billion, equivalent to around 99.7% of the year's target.

After-tax profit reached about VND993 billion ($37.97 million), up 28.3% year-on-year, while profit attributable to parent company shareholders was nearly VND961 billion.

In terms of operations, six-month service revenue reached about VND16,921 billion ($646.95 million), up 16.1% from a year earlier. Net revenue came in at VND5,731 billion ($219.12 million), rising 27.4%, while gross profit exceeded VND1,160 billion ($44.35 million), increasing around 35.6%.

In its core business, original insurance premiums in the first half exceeded VND9,000 billion ($344 million), up around 12%, while reinsurance premiums surpassed VND6,700 billion, increasing more than 15%.

Original insurance claims rose sharply to more than VND3,656 billion ($139.78 million), while reinsurance recovery revenue also increased to more than VND3,900 billion. After accounting for expenses, gross profit still grew faster than net revenue in the first half.

Nearly VND19,800 billion ($757 million) in financial investments and high dividend policy

Alongside insurance operations, PVI’s large financial asset portfolio represents a significant part of its business model.

As of June 30, 2026, the company’s short-term financial investments stood at around VND15,438 billion ($590.25 million), while long-term financial investments reached about VND4,347 billion.

Combined, PVI held nearly VND19,800 billion ($757 million) in financial investments, equivalent to more than 42% of total assets.

Of this amount, time deposits accounted for around VND14,350 billion, including VND11,859 billion in short-term deposits and VND2,490 billion in long-term deposits. Bond holdings amounted to approximately VND2,725 billion.

This financial asset portfolio generates a significant source of income. In the first half, PVI recorded nearly VND756 billion ($28.9 million) in financial revenue. Interest income from deposits and lending contributed nearly VND455 billion, while income from bonds and other securities exceeded VND125 billion .

Therefore, in addition to insurance underwriting results, investment income remains an important component of PVI’s profitability.

From a shareholder perspective, the company maintains a relatively generous profit distribution policy. For 2025, PVI approved a total dividend payout ratio of 33%, including 23% in cash and 10% in shares.

According to Guotai Junan Vietnam, this marked the 11th consecutive year that PVI maintained a cash dividend ratio of at least 20%.

The message about “properly recognizing value” came after a period of significant volatility in PVI’s share price. Over the past year, the stock climbed from above VND50,000 per share to more than VND100,000 ($3.82) per share in late 2025 and early 2026 before correcting.

After an adjustment on August 7 due to the issuance of stock dividends, PVI closed at VND68,300 ($2.6) per share on Monday, August 10. The price remains significantly below its peak, although still higher than it was around a year ago.

PVI’s earnings performance and share price movement have sent two different signals: six-month profit has almost reached the full-year target, while the stock price after adjustment remains substantially below its previous high.

This context has made management’s message that IR should help the market “properly recognize company value” particularly noteworthy.

With the year's profit target almost achieved after only six months, investors will closely watch whether PVI revises its 2026 earnings plan and whether profit margins recover in the third quarter after narrowing in the second quarter.

These factors will provide clearer indicators for the market to assess the company’s underlying value and validate PVI management’s message on improving market recognition.