Looking at the numbers, very few companies on the Vietnamese market recorded 102% profit growth in 2025 against a backdrop of CPI rising 3.35%, domestic diesel prices surging over 50% in a single month, and the Big 4 banks simultaneously raising deposit rates. F88 not only achieved this but completed 135% of its annual target. The story of Vietnam’s largest pawn lending chain offers a fascinating case study in counter-cyclical business models, where economic hardship becomes a growth catalyst.
2025 Results: the numbers speak for themselves
For the full year 2025, F88 recorded VND 907 billion in pre-tax profit, doubling the VND 449 billion from 2024 and completing 135% of its annual plan.Vietstock Outstanding customer loans reached VND 7,216 billion as of December 31, 2025, up 57% from the beginning of the year, while the transaction office network surpassed 950 locations nationwide.
What stands out in this financial picture is the pace of lending scale expansion. Outstanding loans grew 57%, but profit surged 102%, indicating that F88 is significantly improving operational efficiency. Expanding profit margins reflect economies of scale as the network of nearly 1,000 transaction offices begins to leverage fixed cost advantages.
The counter-cyclical mechanism: why economic difficulty creates tailwinds
At the Annual General Meeting on March 30, 2026, Chairman Phung Anh Tuan shared a thought-provoking observation: “When the economy is normal, the pawn lending industry grows well. When there are problems, the industry still grows well.”MarketTimes The 2025 financial data proves this is not empty rhetoric.
The mechanism is straightforward: when inflation rises and bank interest rates climb, banks tighten lending criteria for low-income customers, while rising living costs make working-class people need urgent cash more than ever. Both factors push demand toward modern pawn lending chains. F88’s target customers are factory workers, freelancers, small traders, and ride-hailing drivers: people with unstable income who struggle to access bank credit. Loans are small (typically a few million VND), short-term (weeks to months), with disbursement taking just 15-30 minutes.
Estimated outstanding pawn loans in the formal market have reached approximately VND 30,000 billion (equivalent to USD 1.3 billion), and the actual figure may be much higher since traditional pawn operations remain largely untracked.Phap Luat TP.HCM With over 950 transaction offices, F88 is leading the transformation from traditional pawn shops to a technology-driven chain model. Compared to consumer finance companies like FE Credit (VND 611 billion pre-tax profit in 2025), F88 has an advantage in disbursement speed and collateral security, since pawn lending always involves physical collateral (motorcycles, phones, laptops) that reduces capital loss risk.
2026 Plans: targeting VND 1 trillion profit and doubling capital
F88 presented ambitious 2026 targets at the AGM: revenue of VND 5,462 billion (up 42%), pre-tax profit of VND 1,134 billion (up 25%), outstanding loans of VND 7,502 billion (up 33%), and expansion to approximately 1,000 transaction offices.Thoi Bao Tai Chinh
More notably, the company plans to increase charter capital from VND 1,101 billion to approximately VND 2,467 billion, a 123% increase, through three channels: 1:1 bonus share issuance, an ESOP program, and a public offering of over 22 million shares.Fili F88 also plans to transfer its listing from UPCoM to HOSE in the second half of 2026, just over one year after its initial listing.
SHS Research projects F88 could achieve VND 1,245 billion in pre-tax profit for 2026, 10% above management’s target, with an expected ROE above 34% and PEG of just 0.77x.Bao Phap Luat A PEG below 1 suggests the stock price has not fully reflected growth potential, but investors should weigh additional risk factors before making decisions.
Risks: don’t forget the other side of the coin
Chairman Phung Anh Tuan himself acknowledged that when the economy deteriorates, F88’s customer segment will be the first to suffer income losses, thereby increasing credit risk.MekongASEAN F88’s Net Write-off ratio currently stands at 3.1% per quarter, and the on-time repayment rate hovers around 84%. While these figures are acceptable within the consumer lending industry, they could deteriorate rapidly if a prolonged downturn unfolds.
Additionally, the 123% capital increase plan and public share offering will significantly dilute existing shareholders’ stakes. The HOSE transfer also requires F88 to meet higher governance and transparency standards, adding compliance cost pressure. Competition from fintech fast-lending platforms (online lending apps, e-wallets) is also intensifying, threatening the position of the traditional physical office model.
The bigger picture
F88 shares on UPCoM are trading around VND 134,200 per share (March 31 session), with a market capitalization of approximately VND 14,800 billion. This is a rare story on the market: a counter-cyclical company growing above 25% annually, preparing to transfer to HOSE and raise significant capital.
Looking at the numbers, F88 is in the most clearly defined “acceleration” phase in its operating history. However, the line between “counter-cyclical” and “concentrated risk” is thinner than many investors realize. With a business model dependent on the most vulnerable customer segment in the economy, bad debts could erode profits faster than revenue grows if a genuine recession materializes. Investors should closely monitor the Net Write-off ratio and on-time repayment rate in the coming quarters to assess the true quality of F88’s growth.
