PDR, KDH, NVL H1 2026 Profit Surge on Financial Income, Not Home Sales

Overview

Several Vietnamese real estate firms, including Phát Đạt (PDR), Khang Điền (KDH), and Novaland (NVL), reported strong profit growth for H1 2026, despite a sharp decline in home sales revenue. The profit surge was driven primarily by financial income from divestments and investment gains, a trend also seen at smaller firms Lideco (NTL) and Nhà Đà Nẵng (NDN). This divergence between core operations and bottom-line results highlights the role of one-off financial activities in the sector’s earnings.

Key Facts

• PDR’s H1 2026 net revenue fell over 65% year-on-year to nearly VND 158 billion, but pretax profit tripled to nearly VND 505 billion.
• PDR recorded over VND 1,381 billion in financial income, nearly 9 times its net revenue; Q2 alone saw over VND 473 billion from investment liquidation gains.
• PDR completed the transfer of its entire stake in Serenity for VND 2,500 billion during the period.
• KDH’s H1 net revenue dropped to about VND 442 billion, while financial income reached over VND 913 billion, lifting pretax profit to nearly VND 1,156 billion, up 188% from VND 402 billion a year earlier.
• KDH’s financial income surge followed the sale of an additional 2% stake in Bình Trưng Mới, reducing ownership from 50.95% to 48.95%, triggering recognition of about VND 896 billion in financial income.
• NVL swung from a pretax loss of nearly VND 261 billion in H1 2025 to a pretax profit of nearly VND 2,571 billion in H1 2026, with financial income of nearly VND 2,557 billion, including about VND 1,039 billion from divestments.
• NTL recorded net revenue of just over VND 9.2 billion but financial income of nearly VND 37 billion, mainly from deposit interest and securities investment, resulting in pretax profit of over VND 24 billion, more than double the prior year.

What Happened

In the first half of 2026, several Vietnamese real estate companies reported a notable phenomenon: home sales were weak, but profits surged. Phát Đạt (PDR) saw net revenue fall to nearly VND 158 billion, down over 65% from nearly VND 458 billion in the same period last year. However, pretax profit reached nearly VND 505 billion, more than triple the H1 2025 figure. The main driver was financial income, which exceeded VND 1,381 billion, nearly nine times net revenue. In Q2 alone, over VND 473 billion came from investment liquidation gains, following the completion of the transfer of its entire stake in Serenity for VND 2,500 billion.

Khang Điền (KDH) followed a similar pattern. Net revenue for H1 was only about VND 442 billion, down sharply from the prior year, while financial income reached over VND 913 billion. Pretax profit consequently hit nearly VND 1,156 billion, up about 188% from VND 402 billion. Most of KDH’s financial income appeared in Q2 after it sold an additional 2% stake in Bình Trưng Mới, reducing its ownership from 50.95% to 48.95%. This transaction triggered the recognition of about VND 896 billion in financial income, of which only VND 21.6 billion was direct profit from the sold stake; the remainder related to prior years’ capital transfers that were recognized once KDH lost control of the entity.

Novaland (NVL) also reported a strong profit improvement. H1 net revenue reached nearly VND 5,096 billion, while financial income was nearly VND 2,557 billion. NVL swung from a pretax loss of nearly VND 261 billion in H1 2025 to a pretax profit of nearly VND 2,571 billion in H1 2026. The company attributed the improvement mainly to financial activities, specifically divestments of subsidiaries and recovery of capital investments. Of the financial income, about VND 1,039 billion came from divestments and recovery of investments.

Smaller firms also showed the trend. Lideco (NTL) recorded net revenue of just over VND 9.2 billion, slightly lower than the prior year, but financial income reached nearly VND 37 billion, mainly from deposit interest and securities investment. Pretax profit was over VND 24 billion, more than double the VND 11.9 billion a year earlier. Nhà Đà Nẵng (NDN) reported H1 financial income of VND 46.5 billion, exceeding its net revenue.

Market Context

PDR, KDH, NVL, NTL, and NDN all trade on HOSE. As of August 13, 2026, PDR closed at VND 11,950, KDH at VND 17,750, NVL at VND 13,400, and NTL at VND 13,450. The sector has been under pressure from weak property demand, yet these earnings reports show that financial engineering can temporarily boost profitability. The divergence between core revenue and profit highlights the importance of distinguishing recurring income from one-off gains when evaluating these stocks.

Strategic Significance

For long-term investors, the H1 2026 results underscore that reported profits may not reflect underlying operational health. The reliance on divestment gains and financial income suggests that these companies are monetizing assets to shore up balance sheets, which could be positive for deleveraging but may not be sustainable. Investors should assess whether these gains signal a strategic shift toward asset-light models or simply mask continued weakness in property sales. The ability to generate cash from divestments could provide a buffer, but the core business remains challenged.

What to Watch

• Q3 2026 earnings reports to see if financial income continues to dominate or if home sales recover.
• Any further divestment announcements from PDR, KDH, or NVL, which could indicate ongoing balance sheet restructuring.
• Regulatory updates on the real estate market, such as new project approvals or policy changes affecting demand.
• Cash flow statements to verify that reported profits are backed by actual cash inflows, not just accounting gains.
• Foreign ownership changes, as improved profitability might attract foreign investor interest.