HBC Q3/2026: Revenue Up 31.5%, Net Profit Down 93.2% at Hoa Binh Construction

Overview

Hoa Binh Construction Group (HBC), listed on UPCOM, reported Q3/2026 net revenue of VND 1,476.4 billion, up 31.5% year on year, while net profit fell 93.2% to roughly VND 12.8 billion. The divergence between top-line growth and bottom-line contraction, disclosed in the company’s consolidated Q3/2026 financial statements, leaves the contractor far behind its full-year profit plan.

Key Facts

• Q3/2026 net revenue: VND 1,476.4 billion, +31.5% YoY.
• Q3/2026 net profit: approximately VND 12.8 billion, -93.2% YoY.
• 9M/2026 net revenue: VND 4,736.8 billion, +71.7% YoY; net profit VND 62.8 billion, -73.8% YoY.
• 2026 profit plan: VND 250 billion; 9M completion rate 25.1%.
• Gross margin improved to 7.4% from 5.9%; gross profit VND 109.1 billion, +63.3%.
• Financial income fell 72.6% to VND 63 billion; other income dropped to VND 1.9 billion from VND 44.4 billion.
• Administrative expenses cut to about VND 1.1 billion after a VND 83.9 billion reversal of doubtful-receivable provisions.
• Total assets: VND 17,231.6 billion, +7% since the start of the year; short-term receivables VND 10,998.4 billion, or 63.8% of assets.

What Happened

According to the consolidated Q3/2026 financial statements, construction services generated more than VND 1,230 billion of revenue, up 23%, while real estate sales, apartments, consulting and management services brought in over VND 140.1 billion, 2.8 times the prior-year figure. Goods and finished-product sales reached nearly VND 48.2 billion, up 108.7%. Gross profit rose 63.3% to VND 109.1 billion and the gross margin widened from 5.9% to 7.4%.

The profit collapse came below the gross line. Financial income fell 72.6% to VND 63 billion and other income dropped from VND 44.4 billion to VND 1.9 billion. Financial expenses rose 21.4% to nearly VND 119 billion, of which borrowing costs accounted for VND 103.3 billion. Administrative expenses were reduced to about VND 1.1 billion only because of an VND 83.9 billion reversal of provisions for doubtful receivables, a non-cash item that flattered the reported result. Inventory climbed 50.7% since the start of the year to VND 3,438.8 billion, equal to 20% of total assets, with work-in-progress rising from VND 572.8 billion to VND 1,183.5 billion.

Market Context

HBC trades on UPCOM and last closed at VND 2,900 on 3 November 2026, a price level that reflects persistent skepticism about the contractor’s earnings quality and balance-sheet liquidity. The stock sits in the construction and real-estate-linked segment of the Vietnamese market, where contractors have benefited from a recovery in project awards and residential sales volumes but continue to face high borrowing costs and slow client settlements. Revenue growth of this magnitude signals that construction activity is returning; the profit and cash-flow deterioration suggests the recovery is not yet translating into shareholder returns.

Strategic Significance

The core issue for long-term holders is receivables quality, not revenue momentum. Short-term receivables of VND 10,998.4 billion represent 63.8% of total assets, with concentrated exposures to Matec (VND 658.8 billion), Gamuda Land HCMC (VND 414.3 billion) and Dat Phuong Nam (VND 431 billion). The VND 83.9 billion provision reversal implies management now expects to collect on previously impaired balances, a judgment that will be tested as the cycle matures. Until cash conversion improves and interest costs of roughly VND 103 billion per quarter ease, HBC’s earnings will remain sensitive to non-operating items rather than construction margins.

What to Watch

• Q4/2026 and full-year 2026 results, and whether the VND 250 billion profit plan is formally revised.
• Cash-flow-from-operations line in the annual financial statements, to test whether receivables are being collected.
• Further provision reversals or new impairments on the Matec, Gamuda Land and Dat Phuong Nam balances.
• Work-in-progress conversion at Ascent Plaza and other long-term projects, and any inventory write-downs.
• Any UPCOM disclosure on debt refinancing or changes to borrowing costs.