Hodeco (HDC) Q3/2026 Net Profit Falls 88% to VND 63.3B, Hits 33.5% of Annual Plan

Overview

Hodeco (ticker HDC, HOSE), formally CTCP Phát triển Nhà Bà Rịa - Vũng Tàu, reported Q3/2026 consolidated net profit of nearly VND 63.3 billion, down 88.2% year-on-year, per its quarterly financial statements. Nine-month net profit fell 73% to roughly VND 165.1 billion, equal to only 33.5% of the company’s VND 493 billion full-year target. The drop is driven by a much smaller gain on the sale of shares in Đại Dương Vũng Tàu, not by a collapse in core home sales.

Key Facts

• Q3/2026 net revenue of more than VND 116 billion, up 13.7% year-on-year; gross profit of over VND 20.1 billion, up 16.9%.
• Gross margin improved to 17.3% from 16.9% a year earlier.
• Financial income fell 86.7% to over VND 92.8 billion; the gain on selling Đại Dương Vũng Tàu shares dropped from VND 696.4 billion to nearly VND 78.2 billion.
• Q3/2026 net profit of nearly VND 63.3 billion, down 88.2%; 9-month net profit of nearly VND 165.1 billion, down 73%.
• Nine-month net revenue of more than VND 459.1 billion, up 63.3% year-on-year.
• 2026 net profit plan of VND 493 billion; 9-month completion at 33.5%.
• Operating cash flow negative at more than VND 534 billion for 9M/2026; total assets down 5.2% to nearly VND 5,766 billion; cash on hand down 97.4% to nearly VND 13 billion.

What Happened

The figures come from Hodeco’s consolidated Q3/2026 financial statements, published on the company’s disclosure channel. Revenue growth was solid, but the profit line was dominated by non-core items. Financial income fell 86.7% to VND 92.8 billion because the prior-year quarter booked a VND 696.4 billion gain on the sale of shares in CTCP Đầu tư Xây dựng Giải trí Đại Dương Vũng Tàu; this year the same line contributed only VND 78.2 billion. Hodeco also swung to a loss of more than VND 9.3 billion in joint ventures and associates, versus a VND 5.8 billion profit a year earlier.

Costs moved against the company. Financial expenses rose 114.3% to nearly VND 43.5 billion, selling expenses rose 63.8% to nearly VND 9.5 billion, and general and administrative costs eased slightly to VND 21.3 billion. Other income jumped from VND 301 million to nearly VND 41.3 billion, mainly a VND 40.7 billion land-compensation payment for a project. On the balance sheet, total assets fell 5.2% from the start of the year to nearly VND 5,766 billion, inventory stood at nearly VND 1,503.2 billion (26.1% of assets), and unrestricted cash fell 97.4% to nearly VND 13 billion. Operating cash flow was negative VND 534 billion, an improvement on the negative VND 555 billion a year earlier.

Market Context

HDC closed at VND 11,450 on 27 October 2026 on HOSE. The stock trades in the small- and mid-cap residential segment of the Vietnamese real estate sector, where earnings quality has been a recurring theme: developers that booked large one-off asset-sale gains in 2025 face tough comparatives through 2026. Hodeco’s revenue growth of 63.3% over nine months shows the underlying handover pipeline is moving, but the market has historically valued HDC on reported profit and dividend capacity rather than gross revenue. The thin cash balance and negative operating cash flow sit against a sector still working through inventory and funding constraints.

Strategic Significance

The investment case for HDC now hinges on whether Q4 can deliver roughly VND 328 billion of net profit to meet the VND 493 billion plan, a figure more than double the entire nine-month result. That is unlikely from operations alone and would require either a large land or project transfer, a further asset sale, or a formal plan revision. The Q3 print also shows the 2025 earnings base was inflated by the Đại Dương Vũng Tàu disposal, so year-on-year comparisons overstate the deterioration in the core business. For long-term holders, the more important signal is the balance sheet: near-zero unrestricted cash and negative operating cash flow limit the company’s ability to accelerate project development without new debt or equity, and financial expenses are already rising sharply.

What to Watch

• Q4/2026 financial statements, due by end-January 2027, to test whether the VND 493 billion target is met or formally revised.
• Any disclosure of a land, project, or subsidiary transfer that would generate a one-off gain in Q4.
• The 2027 annual general meeting and business plan, which will indicate management’s view on the earnings base after the Đại Dương disposal.
• Inventory composition and the long-term work-in-progress balance, to gauge how much revenue is genuinely near handover.
• Cash flow and debt disclosures in the next quarterly filing, given the VND 13 billion unrestricted cash position and rising financial expenses.