DHB Q3/2026: Ha Bac Fertilizer Swings to VND 136B Profit, Losses Narrow

Overview

CTCP Phân đạm và Hóa chất Hà Bắc (DHB), listed on UPCOM, reported Q3/2026 after-tax profit of VND 136 billion against a loss of nearly VND 96 billion in the same quarter of 2025, with net revenue up 112% year on year to VND 1,378 billion. The swing reflects a sharp recovery in gross margin and a steep reduction in interest expense, though the company still carries VND 1,102 billion in accumulated losses.

Key Facts

• Q3/2026 net revenue: VND 1,378 billion, up 112% year on year.
• Q3/2026 cost of goods sold: VND 1,124 billion, up 78%; gross profit VND 254 billion, up 1,172%.
• Q3/2026 after-tax profit: VND 136 billion, versus a loss of nearly VND 96 billion in Q3/2025.
• 9M/2026 net revenue: VND 4,995 billion (+67%); pre-tax profit VND 1,236 billion; after-tax profit VND 989 billion, versus a VND 38 billion loss a year earlier.
• Interest expense fell 70% to VND 12 billion; total financial expenses dropped 63% to VND 15 billion.
• Total borrowings at 30 September 2026: VND 431 billion, down 81% from the start of the year, all long-term; short-term debt is now zero versus VND 284 billion at the start of 2026.
• Accumulated losses: VND 1,102 billion, down from VND 2,090 billion at the start of the year; equity rose 157% to VND 1,620 billion.

What Happened

According to the company’s Q3/2026 financial statements, Ha Bac Fertilizer’s gross profit rose more than twelvefold to VND 254 billion as revenue growth outpaced a 78% increase in cost of goods sold. Net profit from operating activities reached VND 169 billion, reversing a VND 45 billion operating loss in the prior-year quarter. Selling expenses rose 214% to VND 24 billion and general and administrative costs rose 149% to VND 49 billion, but these were absorbed by the much larger gross margin.

The balance sheet shows aggressive deleveraging. Total liabilities fell 31% from the start of the year to VND 3,547 billion, and total assets declined 11% to VND 5,167 billion. Long-term loans at VietinBank’s Bắc Giang branch and co-lenders were reduced by VND 894 billion to VND 131 billion, while a VND 300 billion facility with the North-East Regional Development Bank remains outstanding. Short-term balances at VietinBank, BIDV Kinh Bắc, ACB Hoàng Cầu, Vietcombank Tây Hồ and MSB Bắc Giang all closed the period at zero. The filing does not disclose a full-year 2026 profit target.

Market Context

DHB trades on UPCOM, the least liquid of Vietnam’s three exchanges, and closed at VND 11,800 on 26 October 2026. The stock is a small-cap fertilizer and chemicals name whose earnings are highly sensitive to urea and ammonia price spreads and to input costs such as coal and gas. The domestic fertilizer sector has benefited through 2026 from firmer regional urea prices and reduced import competition, a backdrop that shows up clearly in DHB’s gross-margin recovery. The broader Vietnamese market has been supported by falling domestic interest rates, which directly lowers the refinancing cost on the company’s remaining long-term debt.

Strategic Significance

The central thesis for DHB is balance-sheet repair rather than growth. Cutting total borrowings by 81% and eliminating short-term debt removes the interest burden that drove prior losses, and the resulting equity increase of 157% materially improves the company’s leverage profile. The remaining question is whether the earnings recovery is structural or cyclical: nine-month after-tax profit of VND 989 billion has already reduced accumulated losses by roughly VND 988 billion, but the VND 1,102 billion residual still exceeds stated equity of VND 1,620 billion, meaning the company cannot pay dividends and remains exposed if fertilizer spreads compress. Continued profit at the current run-rate would clear the accumulated deficit within roughly one year, a milestone that would reset the investment case.

What to Watch

• Q4/2026 and full-year 2026 financial statements, expected in early 2027, to confirm whether the margin recovery holds.
• Monthly and quarterly urea price benchmarks in Asia, which drive DHB’s realized selling prices.
• Further repayment of the VND 431 billion in remaining long-term debt, particularly the VND 300 billion facility with the North-East Regional Development Bank.
• Any corporate action or shareholder resolution tied to the accumulated loss position, including a possible plan to offset losses against share premium or retained earnings.
• UPCOM liquidity and foreign-ownership data for DHB, given the stock’s thin trading volume.