KDH Q2 Profit Hits Record VND 750B on Divestment, Sales Slump 85%

Overview

Khang Dien (KDH) posted a record Q2 2026 net profit of nearly VND 750 billion, quadruple the year-ago figure, but core sales revenue plunged 85% to a four-year low. The profit surge was driven by a VND 906 billion financial income from divesting its stake in Binh Trung Moi Real Estate LLC. Meanwhile, Nam Long (NLG) and Phat Dat (PDR) also reported mixed results, highlighting a bifurcated real estate market.

Key Facts

• KDH Q2 net profit: ~VND 750 billion, up 4x YoY, highest ever.
• KDH Q2 sales revenue: down 85% YoY, lowest in four years.
• KDH H1 revenue: VND 442 billion, down 75% YoY; net profit: VND 1,031 billion, up 3.2x.
• KDH financial income from divestment: VND 906 billion.
• KDH total debt: ~VND 16,700 billion.
• NLG H1 after-tax profit: VND 176 billion; customer prepayments: VND 2,900 billion, up 13% YTD.
• NLG H1 sales: over VND 5,000 billion; cash: VND 6,100 billion; debt/equity: 0.75x.
• PDR Q2 property transfer revenue: zero; service revenue: VND 51 billion; property business revenue: VND 2 billion.
• PDR divested 99.34% of Serenity for ~VND 2,500 billion and sold 30% of Tam Hiep for VND 637 billion.

What Happened

Khang Dien’s Q2 financial report reveals a stark contrast: record profit but collapsing core sales. The company’s only growth driver was a VND 906 billion financial income from reducing its ownership in Binh Trung Moi Real Estate LLC. This move signals KDH’s priority to strengthen its balance sheet and recover capital amid rising debt of nearly VND 16,700 billion. The company’s H1 revenue fell 75% to VND 442 billion, while net profit tripled to VND 1,031 billion.

Nam Long, in contrast, showed resilience in its core business. H1 after-tax profit was VND 176 billion, modest but supported by strong customer prepayments of VND 2,900 billion, up 13% from the start of the year. This indicates good absorption of its mid-end and affordable products (Ehome, Flora, Valora) despite a sluggish market. With H1 sales exceeding VND 5,000 billion and cash of VND 6,100 billion, NLG maintains a safe financial structure with a debt-to-equity ratio of 0.75x.

Phat Dat reported zero property transfer revenue in Q2, with service revenue of VND 51 billion and property business revenue of just VND 2 billion. Similar to KDH, its bright spot came from financial activities. In early June, PDR completed the transfer of 99.34% of Serenity (owner of the Serenity Phuoc Hai project) to San Fortis for about VND 2,500 billion. It also sold 30% of Tam Hiep for VND 637 billion. In early July, PDR paid VND 2,444 billion to acquire a 35% stake in Lotte Properties HCMC, joining the Thu Thiem Eco Smart City project with total investment of VND 60,000 billion.

Market Context

All three tickers trade on HOSE. KDH closed at VND 17,450 on July 31, 2026, reflecting investor caution despite the profit beat. NLG closed at VND 22,200, and PDR at VND 11,450. The Vietnamese real estate sector remains subdued, with weak transaction volumes and tight credit. KDH’s reliance on divestment gains rather than core sales underscores the challenging operating environment. NLG’s stable sales in the mid-end segment offer a contrast, while PDR’s aggressive capital recycling indicates a strategic shift toward large-scale projects.

Strategic Significance

For long-term investors, KDH’s record profit is a one-off event; the 85% drop in sales revenue raises concerns about its ability to generate recurring income. The divestment reduces exposure to a promising project but improves liquidity and reduces leverage. NLG’s consistent sales in affordable housing suggest a resilient business model aligned with government policy on social housing. PDR’s pivot to major projects like Thu Thiem Eco Smart City could position it for future growth, but the zero revenue quarter highlights execution risks. The divergence among these developers underscores the importance of project location and segment focus in Vietnam’s real estate market.

What to Watch

• KDH’s Q3 2026 sales revenue and any new project launches to gauge core business recovery.
• NLG’s ability to convert customer prepayments into recognized revenue in H2 2026.
• PDR’s progress on Thu Thiem Eco Smart City and any additional divestments to fund capital commitments.
• Regulatory changes on real estate credit and land laws that could impact project approvals.
• Market-wide transaction volumes in H2 2026 as a barometer for sector recovery.