Lideco (NTL) Swings to VND 76.6B Q3 Loss on Securities Provisions

Overview

Lideco (HOSE: NTL), formally Công ty cổ phần Phát triển đô thị Từ Liêm, reported a net loss of VND 76.6 billion for Q3/2026, reversing a VND 12.7 billion profit in the same period of 2025, according to its quarterly financial statements. The swing was driven by securities investment provisions and a sharp drop in financial income, while the company’s OXH-01 social housing project in Hạ Long began absorbing significant capital.

Key Facts

• Q3/2026 net revenue reached VND 4.4 billion, up nearly 15% year on year from the same period in 2025.
• Q3/2026 net loss after tax was VND 76.6 billion, versus a VND 12.7 billion profit in Q3/2025.
• Financial income fell to VND 3.5 billion from VND 57.7 billion a year earlier, while financial expenses reached VND 75.8 billion.
• Nine-month 2026 net loss totaled VND 55.6 billion, against a VND 20.5 billion profit in the first nine months of 2025.
• The OXH-01 social housing project in Hạ Long, Quảng Ninh, was approved under Decision No. 2962/QĐ-UBND dated 29 July 2025 with total investment of about VND 967 billion: one 19-storey tower with 850 apartments.
• Work-in-progress at the social housing project rose to VND 261.5 billion at end-Q3/2026 from VND 44.2 billion at the start of the year, a 5.9x increase.
• Cash and cash equivalents fell to nearly VND 83 billion from more than VND 512 billion at the start of 2026; short-term borrowings stood at VND 215.8 billion, priced at 6.1% per annum in H1 and 7% from 1 July 2026.

What Happened

The loss stemmed from the financial line rather than the core property business. Gross profit turned positive at roughly VND 610 million, compared with a gross loss of nearly VND 629 million in Q3/2025, as cost of goods sold fell from VND 4.5 billion to VND 3.8 billion. But financial income collapsed to VND 3.5 billion from VND 57.7 billion, and financial expenses of VND 75.8 billion, which the company attributes in part to securities investment provisions, overwhelmed the result. Corporate management expenses were VND 7.27 billion.

On the balance sheet, the OXH-01 project in Hạ Long is moving from planning into construction. The company’s explanatory notes state the project was assigned under Decision No. 2962/QĐ-UBND dated 29 July 2025, with approved total investment of about VND 967 billion for a single 19-storey tower containing 850 apartments across the Cao Thắng, Hà Khánh and Hà Lầm wards of Hạ Long city, Quảng Ninh province. Work-in-progress at the project rose to VND 261.5 billion by end-Q3/2026 from VND 44.2 billion at the start of the year, an increase of more than VND 217 billion in nine months. The filing does not disclose the specific securities holdings behind the provision.

Market Context

NTL trades on HOSE and closed at VND 12,150 on 26 October 2026. The result places Lideco among the smaller-capitalisation names in the Vietnamese real estate sector, where developers with limited recurring revenue remain exposed to non-core investment losses. The company’s cash position fell from more than VND 512 billion at the start of the year to nearly VND 83 billion, with most of the outflow directed into the Dịch Vọng project, while short-term debt of VND 215.8 billion was drawn under credit contracts for social housing construction in Cao Xanh and Hà Lầm, Quảng Ninh.

Strategic Significance

The investment case for NTL now rests on execution of the social housing pipeline rather than on the securities portfolio that drove this quarter’s loss. Social housing in Vietnam carries policy support, including preferential credit, but thin margins and long construction cycles mean the VND 967 billion Hạ Long project will consume capital well before it generates revenue. The near-sixfold rise in work-in-progress confirms construction is underway; the question for long-term holders is whether the 850 apartments can be absorbed at prices that justify the borrowing cost, now 7% per annum, against a balance sheet with VND 83 billion in cash.

What to Watch

• Q4/2026 financial statements, expected in late January 2027, for whether securities provisions reverse or recur.
• Disclosure of the specific securities holdings behind the VND 75.8 billion financial expense line.
• Progress milestones and any pre-sale or handover schedule for the 850-unit OXH-01 tower in Hạ Long.
• Further drawdowns on the VND 215.8 billion short-term credit facility and any change to the 7% lending rate.
• Revenue recognition at the Dịch Vọng project, which absorbed most of the year’s cash outflow.