Lilama 10 (L10) Hits Seventh Ceiling as Q3/2026 Profit Jumps 780%

Overview

Lilama 10 (HOSE: L10) extended its run of ceiling sessions to seven on 27 October 2026, with the shares closing up 6.9% at VND 35,650. The move followed the company’s Q3/2026 filing, which showed net profit of VND 111 billion, roughly 8.8 times the same period last year, even as revenue slipped 4%.

Key Facts

• Q3/2026 net revenue of VND 405 billion, down 4% year-on-year.
• Cost of goods sold fell to VND 255 billion from VND 379 billion, lifting gross profit to VND 150 billion from VND 41 billion.
• Q3/2026 net profit of VND 111 billion, approximately 8.8x the prior-year quarter and the highest quarterly result in recent periods.
• Nine-month revenue of VND 1,212 billion and net profit of nearly VND 151 billion; pre-tax profit of about VND 189 billion equals 6.3x the full-year target of VND 30 billion.
• Seven consecutive ceiling sessions from 19 October; the stock rose 59.5% from VND 22,350 on 16 October to VND 35,650, implying market capitalization of about VND 349 billion.
• Trading volume of 8,400 shares on the morning of 27 October, above the 10-session average.
• Lilama 10 has charter capital of VND 98.9 billion and close to 9.9 million shares listed on HOSE.

What Happened

On 26 October 2026, Lilama 10 published a written explanation of its five-session ceiling streak at the request of the Ho Chi Minh City Stock Exchange (HoSE). The company attributed the sharp improvement in results to contributions from the expanded Ialy hydropower plant, the Snowy hydropower project and the Nậm Phak hydropower project, together with tighter cost control. The filing was made alongside the release of Q3/2026 results.

The profit expansion came almost entirely from the gross margin line rather than from volume. Revenue declined 4% to VND 405 billion, but cost of goods sold dropped by VND 124 billion, widening gross profit by VND 109 billion. After operating and other costs, net profit reached VND 111 billion. On a nine-month basis, Lilama 10 has already exceeded both its revenue target of VND 1,000 billion and its pre-tax profit target of VND 30 billion for the full year. The company’s explanation does not quantify how much of the margin gain came from project mix versus one-off cost recoveries.

Market Context

L10 trades on HOSE and is a small-cap contractor in the industrial and energy construction segment, with a free float limited by its roughly 9.9 million listed shares. The stock closed at VND 33,350 on 26 October and reached VND 35,650 the following session, a 59.5% gain over seven ceiling sessions from the 16 October reference of VND 22,350. Daily volume of 8,400 shares is thin in absolute terms, meaning the ceiling streak reflects limited supply more than broad institutional accumulation. The move comes as Vietnamese construction and infrastructure names have drawn interest from public-investment and power-project pipelines, though L10’s re-rating is company-specific rather than sector-wide.

Strategic Significance

The investment case rests on whether Lilama 10’s margin expansion is structural or project-timed. Hydropower mechanical and installation work, including the Ialy expansion, carries higher margins than general industrial construction, and a sustained shift toward energy projects would support earnings above the company’s historically conservative planning. However, a 6.3x overshoot of the annual pre-tax target after nine months indicates the plan was set well below actual capacity, which limits the plan’s value as a forward indicator. The key question for long-term holders is backlog quality: without disclosure of order book value or contract margins, the durability of the Q3 margin cannot be assessed.

What to Watch

• Q4/2026 and full-year 2026 results, including whether gross margin holds near the Q3 level.
• Any additional HoSE request for explanation or disclosure as the ceiling streak continues.
• Disclosure of order backlog and contract values for the Ialy, Snowy and Nậm Phak projects.
• Liquidity metrics, given daily volumes of a few thousand shares and the risk of reversal once ceiling demand fades.
• Any 2027 business plan release that resets profit targets above the VND 30 billion base.