Novaland (NVL) Forced Margin Sale by Chairman-Related Shareholders

Overview

Novaland (NVL) reported that two major shareholder groups related to Chairman Bui Thanh Nhon were forced to sell nearly 1.2 million shares due to margin calls, valued at approximately VND 20 billion. The forced sale occurred as NVL shares surged nearly 70% over the past month, ahead of the company’s upcoming annual general meeting on April 23, 2026.

Key Facts

• Diamond Properties and NovaGroup, both related to Chairman Bui Thanh Nhon, were forced to sell a combined 1.187 million NVL shares via margin calls.
• Diamond Properties sold 426,000 shares on April 13, 2026; NovaGroup sold 761,000 shares between April 10-13, 2026.
• The total value of the forced sale is approximately VND 20 billion (USD 0.8 million).
• After the sale, Diamond Properties holds 170 million NVL shares (7.6% stake), and NovaGroup holds 491 million shares (21.977% stake).
• NVL shares closed at VND 17,500 on April 15, up 70% from one month earlier.
• Novaland targets 2026 net profit of VND 1,852 billion on revenue of VND 22,715 billion (3.26x 2025 revenue).
• The company plans to deliver over 2,600 products in 2026 and has a potential cash flow of over VND 470,000 billion from ongoing projects through 2030.

What Happened

Novaland (NVL) disclosed in a filing that two institutional shareholders—Diamond Properties and NovaGroup—both affiliated with Chairman Bui Thanh Nhon, were forced to sell shares due to margin calls. Diamond Properties sold 426,000 NVL shares on April 13, while NovaGroup sold 761,000 shares between April 10 and 13. The combined sale of nearly 1.2 million shares was executed at market prices, totaling about VND 20 billion.

This forced sale follows a period of active selling by Diamond Properties, which had previously sold 930,800 shares out of a registered 2.157 million shares, completing 43.15% of its plan. The margin calls occurred as NVL shares rallied sharply, gaining 70% in the past month to close at VND 17,500 on April 15.

Market Context

NVL shares on HOSE have experienced a strong recovery, rising 70% in just over a month. The stock closed at VND 18 on April 15 with high volume of 35.9 million shares. The forced sale by related parties may raise concerns about insider sentiment, but the relatively small size (0.05% of outstanding shares) limits immediate market impact. The broader real estate sector has been supported by improving liquidity and policy easing.

Strategic Significance

The margin call highlights ongoing financial pressure on Novaland’s major shareholders, even as the company itself targets a turnaround in 2026. Novaland’s plan to achieve VND 1,852 billion in net profit after a loss in 2025 depends on successful project deliveries and cash flow generation. The forced sale, while small, signals that key insiders may still face liquidity constraints, which could affect their ability to support the company if needed.

What to Watch

• Outcome of the April 23 AGM, particularly approval of the 2026 business plan and any capital increase proposals.
• Q1 2026 earnings release to assess progress toward revenue and profit targets.
• Further margin calls or insider selling by related parties.
• Progress on project deliveries, especially the Lakeview City project and other key developments.
• Any changes in foreign ownership limits or new capital raising plans.