HND Q3/2026: Hai Phong Thermal Swings to Profit as Ex-CEO Arrested

Overview

Hai Phong Thermal Power (ticker HND, UPCOM) reported Q3/2026 net revenue of nearly VND 2,782 billion, up 36% year-on-year, and a net profit of VND 35.49 billion versus a VND 15 billion loss a year earlier. The same filing period carried a governance shock: the company confirmed that its former General Director, Duong Son Ba, was arrested on a document-forgery charge.

Key Facts

• Q3/2026 net revenue: nearly VND 2,782 billion, up 36% year-on-year.
• Q3/2026 net profit: VND 35.49 billion, reversing a VND 15 billion loss in Q3/2025.
• Pre-tax profit: about VND 72.5 billion, against a loss of more than VND 15 billion a year earlier.
• Other expenses jumped to about VND 116 billion, more than 80 times the prior-year level, tied to a coal-price compensation and late-payment interest ordered by the Hải Phòng City People’s Court on 29 September 2026.
• Q3 profit fell nearly 88% from the VND 292 billion earned in Q2/2026.
• 9M/2026 net revenue: about VND 8,862 billion (+15.6%); net profit: nearly VND 544 billion (+38.4% from VND 393 billion).
• Total assets at 30 September: nearly VND 7,624 billion (+3.7% year-to-date); equity nearly VND 6,295 billion; liabilities down 3.3% to about VND 1,329 billion.
• On 21 May 2026 the company received notice from the Ministry of Public Security’s investigative police that Duong Son Ba, then General Director and legal representative, was prosecuted and detained for “forging documents of agencies and organizations.”

What Happened

The quarterly figures, disclosed in the company’s Q3/2026 financial statements, show a commercial recovery. Hai Phong Thermal Power said commercial electricity output rose by about 267.7 million kWh year-on-year, while market power prices and contracted coal-settlement electricity prices were higher. It attributed the prior-year loss to low contracted output in Q3/2025, which left revenue insufficient to cover fixed costs. Gross profit reached more than VND 194 billion, against a gross loss of about VND 1 billion a year earlier, as cost of goods sold rose 27% to nearly VND 2,588 billion.

The profit was nonetheless compressed by the court ruling. Other expenses of about VND 116 billion reflected a coal-price differential payment and late-payment interest under the 29 September 2026 judgment of the Hải Phòng City People’s Court. Separately, the company confirmed the arrest of Duong Son Ba, its former General Director and legal representative, following the 21 May 2026 notice from the Ministry of Public Security’s investigative police. On 13 October, the Board of Directors formally passed a related resolution; the filing does not disclose the full terms of the leadership transition.

Market Context

HND trades on UPCOM, the Hanoi-run exchange for unlisted public companies, and last closed at VND 8,800 on 21 October 2026. As a thermal-power generator selling into Vietnam’s regulated and competitive electricity markets, its earnings track output, coal costs and settlement prices more than broad index sentiment. The Q3 result is a sharp sequential deceleration from Q2’s VND 292 billion profit, and the one-off court-ordered charge illustrates how legal contingencies can override operating improvements for a utility of this size.

Strategic Significance

The core thesis for HND rests on contracted output and coal-price pass-through, not on quarterly swings. The 9M profit growth of 38.4% and a stronger balance sheet, with liabilities down 3.3% and equity up 5.3%, suggest the underlying generation economics improved in 2026. The court-ordered coal-price compensation is the key risk signal: it shows that legacy fuel-supply disputes can produce charges large enough to erase most of a quarter’s profit. The arrest of the former CEO adds a governance discount that investors will likely apply until the legal process and any related liabilities are clarified.

What to Watch

• The company’s Q4/2026 financial statements, expected in early 2027, to see whether the court-ordered charge is fully provisioned or recurs.
• Any further disclosure on the criminal case against Duong Son Ba and whether it touches company documents or contracts.
• Resolution details from the 13 October Board of Directors meeting, including the permanent leadership and legal-representative appointment.
• Monthly or quarterly commercial electricity output and coal-settlement price data from the electricity market operator.
• Updates on the Hải Phòng City People’s Court judgment of 29 September 2026, including any appeal or payment schedule.