NDN Swings to Q3/2026 Loss as 9-Month Profit Falls 90% Despite VHM Gain

Overview

Da Nang House Development (NDN), listed on HNX, reported a Q3/2026 net loss of more than VND 10B, reversing a VND 71B profit in the same period last year, according to its quarterly financial statements. Nine-month net profit fell nearly 90% year-on-year to about VND 15B, even as the company’s securities portfolio, which includes VHM, HPG and GEX, carried an unrealized gain of roughly VND 101B on its Vinhomes stake.

Key Facts

• Q3/2026 net loss of more than VND 10B, versus a VND 71B profit in Q3/2025.
• Nine-month 2026 net profit of about VND 15B, down nearly 90% year-on-year.
• Q3/2026 net revenue of nearly VND 7.5B, down about 19% year-on-year; nine-month revenue of nearly VND 32B, up about 60%.
• Securities portfolio at cost of nearly VND 668B as of 30 September 2026, up from about VND 389B at the start of the year; fair value above VND 760B.
• VHM position: cost of nearly VND 84B, fair value of nearly VND 185B, an unrealized gain of about VND 101B.
• GEX position: fair value of about VND 46B against cost of more than VND 52B; provision of about VND 6.4B.
• Total securities provision of VND 51B at end-Q3, up from VND 15B at the start of the year; total assets of VND 1,378B.

What Happened

NDN’s filing shows financial revenue collapsing to VND 15B in Q3/2026 from more than VND 96B a year earlier, while financial expenses rose to more than VND 26B, nearly double the prior-year figure. The company recorded a net operating loss of more than VND 11B, compared with an operating profit of more than VND 85B in Q3/2025. In its explanation, NDN attributed the deterioration to adverse moves in the stock market that reduced portfolio efficiency and raised costs and provisioning.

The securities book remains the balance sheet’s dominant feature. At 30 September 2026, the HPG position carried a cost of more than VND 110B against fair value of nearly VND 123B, while VHM nearly doubled from its VND 84B cost to almost VND 185B. Those gains were partly offset by GEX, where fair value of about VND 46B sits below a cost base of more than VND 52B. Cash, cash equivalents and deposits fell nearly 46% from the start of the year to about VND 223B, and the company continues to carry no long-term financial borrowings, with short-term debt of VND 171B mostly comprising dividends and other payables.

Market Context

NDN closed at VND 7,900 on 25 October 2026 on HNX, a small-cap property name whose equity story is now driven more by its listed-securities book than by residential development. VHM closed at VND 63 on 26 October, down 2.02% on volume of 6.2 million shares, and remains the single largest contributor to NDN’s paper gains; HPG closed at VND 21 and GEX at VND 24,100. The result lands against a Vietnamese market where real estate and steel names have traded sideways to lower, making mark-to-market swings on a concentrated portfolio a material earnings variable for small listed companies.

Strategic Significance

NDN’s core development business is now too small to absorb portfolio volatility: nine-month revenue of VND 32B cannot offset a VND 51B provision or a VND 26B quarterly financial expense. The VHM gain is real but unrealized, and it is the kind of asset that can be monetized to fund operations or dividends, or can reverse if Vinhomes shares weaken. For long-term holders, the key question is whether management treats the securities book as a treasury function or as a de facto profit center; the near-doubling of the portfolio at cost since January suggests the latter, which raises governance and disclosure scrutiny for a company with VND 1,200B of equity and no long-term bank debt.

What to Watch

• Q4/2026 financial statements, expected by end-January 2027, for any reversal or realization of the VHM gain.
• Movement in VHM, HPG and GEX prices, given the portfolio’s concentration and the VND 51B provision balance.
• Any disclosure of share sales from the securities book, which would convert paper gains into cash.
• Dividend payment timing, given the VND 171B short-term payable largely tied to dividends and profit distribution.
• Further detail on financial expenses, which doubled year-on-year and are not fully explained by the market commentary.