HODECO (HDC) Sells Vung Tau Seavillage Project for VND 1,050 Billion

Overview

HODECO (ticker HDC, HOSE) announced that its Board of Directors approved the principle of transferring the entire HODECO Seavillage project, also known as the residential area east of duong 3/2 in Vung Tau, for VND 1,050 billion. The 2.58ha site carries 132 commercial apartments, 795 condotel units and 39 townhouses. The disposal comes as the company reports sharply higher H1 2026 revenue and profit but negative operating cash flow.

Key Facts

• Board resolution announced 22 September approving transfer of the whole HODECO Seavillage project for VND 1,050 billion, approximately USD 42 million.
• Project site covers 2.58ha at duong 3/2, Rach Dua ward, former Vung Tau City, comprising 132 apartments, 795 condotels and 39 townhouses.
• HODECO has developed the project since 2011 at an original scale of about 4.74ha; a 1/500 detailed plan adjustment in 2020 cut the area to roughly 2.58ha.
• H1 2026 net revenue exceeded VND 343 billion, up more than 91% year on year; net profit after tax reached nearly VND 102 billion, up almost 42%.
• Net cash flow from operating activities was negative VND 411 billion in H1 2026, versus positive VND 24 billion a year earlier.
• The company issued close to VND 1,000 billion of bonds in 2025, including private and convertible bonds, and also issued shares to raise equity.
• In July 2025 HODECO completed the transfer of its entire 47.27% stake in Dai Duong Vung Tau Entertainment Investment and Construction JSC, owner of the 19.5ha Dai Duong tourism site.

What Happened

The board resolution authorises the Chairman and the General Director to carry out all related work for the transfer of the HODECO Seavillage project, according to the company’s disclosure. The project has been in HODECO’s pipeline since 2011, when it was planned at roughly 4.74ha; a revised 1/500 detailed plan approved in 2020 reduced the developable area to about 2.58ha. The company did not disclose the identity of the buyer, the payment schedule, or the expected timing of completion in the announcement.

The disposal follows a period of active portfolio restructuring. In July 2025 HODECO completed the sale of its entire 47.27% interest in Dai Duong Vung Tau Entertainment Investment and Construction JSC, the entity behind the 19.5ha Dai Duong tourism complex in the Chi Linh - Cua Lap area, which had planned investment of up to VND 4,300 billion. Audited 2025 financial statements showed cash recovered from capital contributions to other entities jumping to nearly VND 939 billion. In a July 2026 letter to shareholders, the Chairman said management’s focus is optimising operating cash flow through stronger sales, debt collection and handover of completed products, while progressing legal procedures for Sea Village 3/2.

Market Context

HDC closed at 11,750 on 23 September 2026 on HOSE. The stock trades in the small- and mid-cap real estate segment, a group that has broadly lagged the VN-Index recovery as investors favour banks and select large caps. HODECO’s own cash-flow record frames the valuation debate: net operating cash flow was about negative VND 133 billion in 2024 and negative VND 1,017 billion in 2025, offset by investing cash flow swinging from negative VND 61 billion in 2024 to more than positive VND 903 billion in 2025. The pattern shows an asset-sale-driven liquidity model rather than recurring development cash generation.

Strategic Significance

The Seavillage transfer converts a long-dormant land bank into cash at a time when HODECO’s operating cash flow is deeply negative and financial costs have risen to nearly VND 84 billion in H1 2026, 2.5 times the prior-year level. Management has said most of the company’s clean land is carried at original cost and has never been revalued, which means book value understates the economic value of disposals like this one. For long-term holders, the thesis rests on whether proceeds are recycled into the named priority projects, The Light City phase 1, Ngoc Tuoc 2 villa hill, Ecotown Phu My (Eco Home CC1) and Bien Da Vang, or used mainly to service the roughly VND 1,000 billion of bonds issued in 2025. The sale reduces execution risk on Seavillage but also removes a future revenue source, so the net effect depends on redeployment.

What to Watch

• Disclosure of the buyer, transaction value breakdown and payment schedule for the VND 1,050 billion transfer.
• Q3 2026 financial statements, particularly whether operating cash flow turns positive after the disposal.
• Bond repayment and interest schedules tied to the roughly VND 1,000 billion issued in 2025, including any convertible bond conversion terms.
• Handover progress and presales at The Light City phase 1, Ngoc Tuoc 2, Ecotown Phu My and Bien Da Vang.
• Legal approval milestones for Sea Village 3/2 and any further asset disposals or land revaluations.