Novaland divests 99.93% stake in Ngôi Nhà Mega, books VND 1,039B gain

Overview

Novaland (HOSE: NVL) has completed the transfer of its entire 99.93% stake in Công ty TNHH Ngôi Nhà Mega, a subsidiary with a charter capital of over VND 4,472 billion. The divestment, recorded in the H1 2026 financial statements, contributed to a gain of over VND 1,039 billion from divestment activities, helping the real estate developer post a net profit of nearly VND 1,772 billion for the period.

Key Facts

• Novaland divested 99.93% of its capital in Ngôi Nhà Mega, reducing its ownership to 0%.
• The investment value in Ngôi Nhà Mega increased from VND 212 billion to approximately VND 5,413 billion before the transfer.
• The gain from divestment and recovery of capital investments exceeded VND 1,039 billion in H1 2026, accounting for about 41% of financial revenue.
• H1 2026 revenue reached VND 5,096 billion, up 37.6% year-on-year.
• Net profit after tax was nearly VND 1,772 billion, versus a loss of VND 666 billion in H1 2025.
• The transfer was approved under Resolution No. 68 dated November 24, 2025.
• Post-deal, Novaland’s interest in Bất động sản An Phát fell to 0%, and in Đầu tư Địa ốc No Va dropped from nearly 100% to 52.91%.

What Happened

According to Novaland’s consolidated financial statements for the second quarter of 2026, the company completed the transfer of its entire 99.93% stake in Ngôi Nhà Mega by June 30, 2026. The divestment followed a series of capital contributions that increased the value of Novaland’s investment in Ngôi Nhà Mega from approximately VND 212 billion to nearly VND 5,413 billion.

The capital contributions were made using shares in two subsidiaries: 47.06% of Công ty CP Đầu tư Địa ốc No Va (charter capital VND 5,474 billion) and 99.999% of Công ty CP Đầu tư Thương mại và Phát triển Bất động sản An Phát (charter capital over VND 1,632 billion). The revaluation surplus from these contributions was nearly VND 944 billion.

The financial statements do not disclose the exact transfer price, but the difference between the total transfer value and the carrying amount of net assets was recognized in the consolidated income statement. The gain from divestment and recovery of capital investments exceeded VND 1,039 billion, a line item that did not exist in the same period of 2025.

Market Context

Novaland’s shares closed at VND 13,200 on August 17, 2026, reflecting a market capitalization of approximately VND 25 trillion. The stock has been under pressure due to the company’s high debt levels and ongoing restructuring efforts. The divestment of Ngôi Nhà Mega is part of a broader asset disposal strategy aimed at improving liquidity and reducing leverage. The positive H1 results, driven by the divestment gain, may provide some support to investor sentiment, but the sustainability of profitability remains a key concern.

Strategic Significance

This divestment is a strategic move for Novaland to streamline its portfolio and focus on core real estate development projects. By selling a non-core subsidiary, Novaland not only realizes a significant gain but also reduces its exposure to entities linked to certain projects. The transaction also alters its ownership in other related entities, potentially simplifying its corporate structure. For long-term investors, this signals management’s commitment to deleveraging and asset-light operations, which could improve financial health and transparency. However, the reliance on one-off gains for profitability underscores the need for sustained operational improvements.

What to Watch

• Subsequent quarterly earnings reports to see if operational revenue growth continues without divestment gains.
• Updates on the use of proceeds from the divestment, particularly debt repayment or new project funding.
• Any further asset sales or restructuring announcements from Novaland.
• Changes in ownership structure and their impact on consolidated financials.
• Market reaction to the stock’s valuation relative to its net asset value.