DIC Corp (DIG) Posts Net Loss of VND 10B in Q1 2026, Far from Annual Target

Overview

DIC Corp (DIG, HoSE) reported a net loss of nearly VND 10 billion in Q1 2026, with revenue declining 5.4% year-on-year. The weak start to the year places the company far from its ambitious full-year profit target of VND 600 billion, highlighting ongoing operational challenges in the real estate sector.

Key Facts

• Net loss of VND 9.9 billion in Q1 2026, compared to a loss of VND 45.4 billion in Q1 2025.
• Net revenue reached VND 144.6 billion, down 5.4% year-on-year.
• Gross profit rose 35.5% to VND 39.6 billion, but higher expenses weighed on the bottom line.
• Financial expenses increased 8.6% to VND 25.7 billion; selling expenses surged 46.6% to VND 12.9 billion.
• Cash flow from operations was negative VND 436.9 billion, versus negative VND 278.5 million in Q1 2025.
• Total assets fell 6.5% from the start of the year to VND 17,721 billion; inventory accounted for 38.4% of assets.
• Total liabilities decreased 15.3% to VND 7,568.4 billion, with short-term customer advances comprising 40.1% of total debt.

What Happened

DIC Corp (Tong Cong ty Co phan Dau tu Phat trien Xay dung) released its consolidated financial statements for the first quarter of 2026, revealing a net loss of nearly VND 10 billion. While this is an improvement from the VND 45.4 billion loss in the same period last year, the company’s revenue contracted 5.4% to VND 144.6 billion. Gross profit increased 35.5% to VND 39.6 billion, but higher selling and administrative expenses eroded profitability.

The company’s operating cash flow turned deeply negative at VND 436.9 billion, compared to a negligible negative amount in Q1 2025. DIC Corp’s full-year 2026 target calls for pre-tax profit of VND 600 billion, but the first-quarter pre-tax loss of VND 10.1 billion leaves a significant gap.

Market Context

DIG shares closed at VND 15,000 on April 10, 2026, unchanged from the previous session, with trading volume of 7.86 million shares. The stock has faced pressure amid a sluggish real estate market and the company’s ongoing financial challenges. DIC Corp, listed on HoSE, is a mid-cap real estate developer with a portfolio of large-scale urban and tourism projects.

Strategic Significance

The Q1 results underscore the difficulty DIC Corp faces in executing its business plan for 2026. The company’s high inventory levels (VND 6,805 billion, mostly work-in-progress at key projects) and negative operating cash flow suggest delays in project monetization. The reliance on customer advances (VND 3,038 billion) for funding adds risk if project timelines slip. Meeting the VND 600 billion profit target will require a sharp acceleration in revenue and cost control in subsequent quarters.

What to Watch

• Q2 2026 earnings release for signs of revenue recovery and margin improvement.
• Progress on major projects: Dai Phuoc eco-tourism urban area, Nam Vinh Yen new urban area, and Hau Giang residential area.
• Changes in customer advances and inventory levels as indicators of project sales.
• Any guidance updates or capital-raising plans from management.
• Sector-wide real estate demand trends and policy support from the government.