CSV Q3 2026: Southern Basic Chemicals Net Profit Jumps 60% on Sulfuric Acid Prices

Overview

Southern Basic Chemicals (HOSE: CSV) reported Q3 2026 consolidated net revenue of more than VND 814 billion, up 59.6% year on year, and net profit after tax of over VND 96.3 billion, up 60.41%, according to the company’s Q3 2026 consolidated financial statements. The result was driven by sharply higher selling prices for sulfuric acid (H₂SO₄), hydrochloric acid (HCl) and yellow phosphorus, plus a 56% increase in yellow phosphorus sales volume at the subsidiary.

Key Facts

• Q3 2026 net revenue: over VND 814 billion, +59.6% YoY, an increase of more than VND 304 billion.
• Q3 2026 net profit after tax: over VND 96.3 billion, +60.41% YoY, up more than VND 36.2 billion.
• Parent-company revenue rose nearly VND 188.9 billion (+42.22%); average sulfuric acid selling price rose 289% and hydrochloric acid 72%.
• Subsidiary revenue rose more than VND 115.1 billion (+83.86%) on yellow phosphorus volume +56% and average price +22%.
• Cost of goods sold rose 65.91% to over VND 626.3 billion, outpacing revenue; gross margin fell to 23.1% from about 26% a year earlier.
• Net profit attributable to parent-company shareholders: over VND 85.4 billion, +47.9% YoY.
• 9M 2026 net revenue: nearly VND 2,129.7 billion (+40.5%); net profit after tax: nearly VND 275.8 billion (+46.8%).

What Happened

In its Q3 2026 consolidated financial statements, CTCP Hóa chất Cơ bản Miền Nam (Southern Basic Chemicals) attributed the revenue increase to improved chemical selling prices at the parent company and to both higher volume and price for yellow phosphorus at its subsidiary. Per the company’s own explanation, parent-company consumption revenue rose nearly VND 188.9 billion, or 42.22%, with average sulfuric acid prices up 289% and hydrochloric acid up 72%, while several other products rose between 1% and 7%. At the subsidiary, consumption revenue rose more than VND 115.1 billion, or 83.86%, helped by a 56% rise in yellow phosphorus volume and a 22% rise in its average selling price.

Profitability did not scale one-for-one with revenue. Cost of goods sold climbed 65.91% to over VND 626.3 billion, faster than the top line, so gross profit reached nearly VND 187.7 billion (+41.6%) and the gross margin narrowed to 23.1% from roughly 26% in Q3 2025. Operating profit from core business came in at nearly VND 121.7 billion (+58.5%), financial income rose 6.55% to nearly VND 11.7 billion on higher deposit interest at the parent, while financial expenses jumped 166.14% to about VND 5.6 billion. Selling expenses rose 14.59% to VND 48.7 billion and general and administrative expenses rose 6.03% to nearly VND 23.6 billion. Other income swung to a VND 920 million gain from a loss of nearly VND 1.3 billion a year earlier.

Market Context

CSV trades on the Ho Chi Minh City Stock Exchange (HOSE) and closed at VND 23,850 on 26 October 2026. The stock sits in the small-cap chemicals segment, where earnings are closely tied to commodity input and output prices rather than to domestic demand volumes. The Q3 result extends a strong nine-month run in which revenue grew 40.5% and net profit 46.8%, a pace that stands out against the broader Vietnamese market’s more modest aggregate earnings growth and gives the chemicals sub-sector a rare commodity-price tailwind story for 2026.

Strategic Significance

The investment case for CSV now hinges on whether the sulfuric acid and yellow phosphorus price spike is structural or cyclical. Sulfuric acid prices rising 289% is an extreme move that typically reflects tight global supply of smelting by-products and strong demand from fertilizer and industrial users; if it persists, CSV’s pricing power at the parent company could keep earnings elevated even without volume growth. The offsetting signal is the margin compression: input costs rose faster than selling prices, meaning CSV captures the revenue headline but not the full margin benefit. For long-term holders, the key question is whether the company can lock in favorable contract prices for 2027 before the commodity cycle turns, and whether the subsidiary’s yellow phosphorus volumes continue to scale.

What to Watch

• Q4 2026 and full-year 2026 financial statements, expected in early 2027, to show whether sulfuric acid prices held at elevated levels.
• Any company disclosure on 2027 contract pricing for sulfuric acid and hydrochloric acid.
• Yellow phosphorus volume and price trends at the subsidiary, which contributed the faster-growing revenue line.
• Gross margin trajectory: a further slide below 23.1% would suggest cost inflation is eroding the price-driven gain.
• Regional sulfuric acid and phosphate fertilizer price benchmarks, which drive CSV’s realizations.