Ha Do (HDG) Profit Up 86% After Audit, Solar Provisions Top 800B VND

Overview

Ha Do Group (HOSE: HDG) reported an 86% increase in after-tax profit for H1 2026 after audit review, reaching over 386 billion VND, primarily due to real estate cost adjustments. However, the company also provisioned over 800 billion VND for receivables from two solar power projects entangled in pricing disputes with EVN, highlighting a stark contrast between accounting gains and operational risks.

Key Facts

• Audited H1 2026 after-tax profit reached over 386 billion VND, up 178 billion VND (86%) from the pre-audit figure.
• Profit attributable to parent shareholders rose to over 301 billion VND, more than triple the pre-audit level.
• Cost of goods sold was adjusted down to nearly 272 billion VND, lifting gross profit to nearly 904 billion VND.
• Net revenue after audit stood at over 1,175 billion VND.
• Receivables from EVN’s Electricity Trading Company reached over 804 billion VND by end-June 2026, up from about 513 billion VND at start of year.
• Total bad-debt provisions reached nearly 936.5 billion VND, covering almost all of the 939 billion VND in non-performing receivables.
• The provisions relate to two solar subsidiaries: Hà Đô Bình Thuận (Hồng Phong 4) and Năng lượng Surya Prakash Việt Nam (SP Infra 1).

What Happened

Ha Do Group’s semi-annual 2026 financial statements, after audit review, revealed a significant upward revision in net profit. The company attributed the change to a reassessment of land use costs and accumulated cost of goods sold in its real estate business, which reduced cost of goods sold sharply and boosted gross profit. This accounting adjustment added nearly 178 billion VND to after-tax profit, with parent shareholders’ profit more than tripling to over 301 billion VND.

In contrast, the energy segment faced mounting provisions. By end-June 2026, Ha Do recorded over 939 billion VND in non-performing receivables, nearly fully provisioned at 936.5 billion VND. The largest chunk—over 804 billion VND—is owed by EVN’s Electricity Trading Company, related to power sales from two solar plants: Hồng Phong 4 and SP Infra 1. Both projects are grappling with pricing issues. Hồng Phong 4 is under scrutiny for potentially having received FIT tariffs without meeting all conditions, which could lead to retroactive price adjustments. SP Infra 1 faces a proposed tariff of 1,184.9 VND/kWh for the period from commercial operation to formal acceptance, with the difference from the contracted price to be recovered. Ha Do stated that no official conclusions have been received yet, but it has provisioned based on the current legal status.

Market Context

HDG shares closed at 17,000 VND on September 7, 2026, reflecting investor caution amid regulatory uncertainties in the solar segment. The company, listed on HOSE, operates in real estate and energy, with the latter contributing to a significant portion of receivables risk. The broader Vietnamese market has been sensitive to policy changes in renewable energy, especially retroactive tariff adjustments, which have weighed on solar developers’ valuations. The profit beat is largely a one-off accounting effect, while the energy provisions signal ongoing legal and financial overhangs.

Strategic Significance

For long-term investors, the audit adjustments highlight the volatility in Ha Do’s real estate earnings, which can be materially revised based on cost recognition. More critically, the solar receivables issue underscores the regulatory risk in Vietnam’s renewable sector, where retroactive tariff changes can impair cash flows and require substantial provisions. Ha Do’s ability to resolve these pricing disputes with EVN will be crucial for its energy segment’s profitability and balance sheet health. The company’s diversified portfolio may offer some buffer, but the solar provisions could persist until final regulatory decisions are made.

What to Watch

• Official conclusions from the Ministry of Industry and Trade or other authorities on Hồng Phong 4’s FIT eligibility and tariff adjustments.
• Final decision on SP Infra 1’s tariff for the pre-acceptance period, as proposed by EVN/EPTC.
• Ha Do’s H2 2026 earnings release and any further provisions or reversals related to solar receivables.
• Updates on the collection of the 804 billion VND receivable from EVN and the impact on cash flow.
• Regulatory developments in Vietnam’s solar power pricing framework that could affect similar projects.