Novaland (NVL) H1 Net Profit Surges 366%, Hits 96% of Full-Year Target

Overview

Novaland Group (NVL) reported a net profit of nearly VND 1,772 billion in the first half of 2026, completing 96% of its annual profit target. The earnings beat was driven by a sharp increase in financial income, while core real estate revenue declined. The company continues to execute a financial restructuring plan, including debt extensions and equity issuance.

Key Facts

• H1 2026 net profit: VND 1,772 billion, versus a loss of VND 666 billion in H1 2025.
• H1 2026 revenue: VND 5,096 billion, up 38% YoY.
• Q2 2026 net profit: VND 912 billion, compared to a loss of VND 190 billion in Q2 2025.
• Q2 2026 revenue: VND 1,509 billion, down 22% YoY.
• Financial income in H1 2026: VND 1,741 billion, 3.4x higher YoY, from lending, investment cooperation contracts, and divestment gains.
• Annual profit target completion: 96%; revenue target completion: 22%.
• Total assets as of June 30, 2026: VND 258,658 billion, up 3.5% from year-end 2025.
• Inventory: VND 157,712 billion, mainly completed properties for sale.
• In June 2026, NVL issued 167 million bonus shares, raising charter capital to nearly VND 24,021 billion.
• NVL reached an agreement with bondholders to restructure an international convertible bond, extending maturity to July 2028.

What Happened

Novaland Group (NVL) released its Q2 2026 financial statements, showing a net profit of VND 912 billion for the quarter, reversing a loss of VND 190 billion in the same period last year. The improvement was primarily due to a surge in financial income, which reached VND 1,741 billion in H1, up 3.4 times YoY. This income came from lending, investment cooperation contracts, and divestment gains from subsidiaries and capital recovery.

For the first half of 2026, NVL reported consolidated net profit of nearly VND 1,772 billion, compared to a loss of over VND 666 billion in H1 2025. Revenue rose 38% to VND 5,096 billion. However, core real estate transfer revenue in Q2 fell 22% YoY to VND 1,341 billion, attributed to handovers at projects such as Sunrise Riverside, Victoria Village, Aqua City, NovaWorld Phan Thiet, and NovaWorld Ho Tram.

Market Context

NVL shares closed at VND 13,000 on July 30, 2026, on the HOSE. The real estate sector has faced headwinds from tight credit conditions and slow market recovery. NVL’s earnings beat, driven by non-operating income, may raise questions about sustainability. The company’s high inventory (VND 157,712 billion) and ongoing debt restructuring efforts remain key concerns for investors.

Strategic Significance

Novaland’s ability to generate profit through financial income, rather than core property sales, highlights the ongoing challenges in the Vietnamese real estate market. The company’s aggressive debt restructuring, including the extension of an international convertible bond to 2028 and securing credit commitments of over VND 33,000 billion, suggests a focus on liquidity management. However, the low revenue target completion (22%) indicates that project handovers and sales remain sluggish. Long-term investors should monitor the pace of core business recovery and the resolution of overdue debts.

What to Watch

• Q3 2026 earnings release for signs of core revenue recovery.
• Progress on debt restructuring and any new bond issuances.
• Updates on major project handovers, especially at Aqua City and NovaWorld Phan Thiet.
• Changes in inventory levels and cash flow from operations.
• Any further equity issuances or asset sales to meet financial obligations.