DNH Q1/2026 Net Profit Surges 59% to VND 294B on Favorable Hydrology

Overview

DNH (Da Nhim - Ham Thuan - Da Mi Hydropower Joint Stock Company) reported a 59% year-on-year increase in Q1/2026 net profit to VND 294 billion, driven by a 20% revenue rise to VND 585 billion. The company attributed the strong performance to favorable hydrology and higher water flow into its reservoirs, boosting electricity output.

Key Facts

• Q1/2026 net profit: VND 294 billion, up 59% YoY.
• Q1/2026 revenue: VND 585 billion, up 20% YoY.
• Total assets as of March 31, 2026: VND 6,866 billion, down VND 557 billion from the start of the year.
• Total liabilities: VND 1,715 billion, including VND 1,442 billion in borrowings.
• Equity: VND 5,424 billion.
• Parent company EVNGENCO1 holds 99.93% of DNH shares.
• DNH operates the Da Nhim, Ham Thuan, and Da Mi hydropower plants, with a combined capacity of 475 MW for the Ham Thuan-Da Mi system.

What Happened

DNH released its Q1/2026 financial statements, showing a sharp increase in profitability. The company explained that the primary reason for the after-tax profit growth was favorable hydrological conditions, with higher water inflow to the Don Duong and Ham Thuan reservoirs leading to increased electricity production and revenue.

The company, formerly a subsidiary of EVN, was equitized in 2011. It also owns the Da Mi floating solar power plant (47.5 MWp), the first of its kind in Vietnam, built on the Da Mi reservoir.

Market Context

DNH is listed on the Ho Chi Minh Stock Exchange (HOSE) and is a major hydropower player in Vietnam. The company’s performance is highly dependent on weather patterns, particularly rainfall in the Central Highlands. The strong Q1 results contrast with potential dry-season risks later in the year. The stock has likely benefited from the earnings beat, though broader market sentiment and sector dynamics also influence its valuation.

Strategic Significance

DNH’s earnings beat highlights the operational leverage inherent in hydropower assets when hydrological conditions are favorable. The company’s strategic importance is underpinned by its long-term power purchase agreements with EVN and its role in Vietnam’s renewable energy mix. The addition of floating solar capacity diversifies its generation profile and aligns with the government’s push for clean energy. However, the high concentration of ownership by EVNGENCO1 limits free float and liquidity.

What to Watch

• Q2 2026 earnings release for signs of sustained hydrological advantage.
• Updates on reservoir levels and rainfall forecasts for the Central Highlands.
• Any regulatory changes affecting hydropower tariffs or PPAs.
• Progress on the Da Mi floating solar expansion or new renewable projects.
• Changes in EVNGENCO1’s ownership or potential divestment plans.