QCG Q2 profit jumps 92.8x on hydropower sale, revenue plunges 91%

Overview

Quốc Cường Gia Lai (QCG) reported a 92.8x surge in Q2 2026 net profit to VND 167.1 billion, largely due to a one-off gain from transferring a hydropower plant. However, revenue plunged 91% year-on-year, and the company continues to grapple with legal obligations tied to the Phuoc Kien project.

Key Facts

• Q2 2026 net profit reached VND 167.1 billion, up 92.8x from the same period last year.
• Q2 revenue fell 91% to VND 11.5 billion, with a gross loss of VND 720 million.
• Other income of VND 917 billion included VND 903 billion from hydropower plant transfer, offset by VND 659.8 billion in transfer costs.
• Total assets at June 30, 2026 stood at VND 7,938 billion, down 9% from the start of the year.
• Work-in-progress assets for the Phuoc Kien project totaled VND 5,406.5 billion, representing 68% of total assets.
• QCG has repaid VND 1,300 billion of the VND 2,882.8 billion owed under a court judgment related to Phuoc Kien; the remainder is classified as long-term.
• Short-term payables include VND 1,582.8 billion to Sunny Island, with VND 111.4 billion paid in late July 2026.

What Happened

Quốc Cường Gia Lai (QCG) released its Q2 2026 financial statements, revealing a dramatic profit increase driven by a one-off transaction. The company recorded other income of VND 917 billion, primarily from transferring a hydropower plant, which contributed VND 903 billion. After deducting transfer costs of VND 659.8 billion, net other profit was VND 242.1 billion, lifting net profit to VND 167.1 billion.

Despite the profit surge, core operations weakened: revenue fell 91% to VND 11.5 billion, and the company posted a gross loss of VND 720 million. The balance sheet remains heavily weighted toward the Phuoc Kien project, with work-in-progress assets of VND 5,406.5 billion. QCG also disclosed ongoing related-party loans from the family of CEO Nguyễn Quốc Cường, including VND 30 billion from him, VND 198.5 billion from his sister Nguyễn Ngọc Huyền My, and VND 6.9 billion from her husband Lầu Đức Duy.

Market Context

QCG shares closed at VND 9,960 on August 1, 2026, on the HOSE. The stock has been under pressure due to the prolonged legal dispute over the Phuoc Kien project, which has weighed on investor sentiment. The one-off profit boost may provide short-term support, but the 91% revenue decline underscores weak underlying operations. The broader Vietnamese real estate sector has faced headwinds from regulatory changes and credit tightening, though recent policy easing has offered some relief.

Strategic Significance

For long-term investors, QCG’s Q2 results highlight the company’s reliance on asset disposals rather than recurring revenue. The hydropower plant sale provides a cash injection but does not address the core issue: the Phuoc Kien project’s legal overhang. The company must repay VND 2,882.8 billion to satisfy a court judgment related to the project, and progress on this front is critical. Successful resolution could unlock significant value, but until then, QCG’s financial position remains fragile, with a large portion of assets tied up in a disputed project.

What to Watch

• Progress on repaying the VND 2,882.8 billion obligation to the enforcement agency; any delays could escalate legal risks.
• Updates on the Phuoc Kien project’s legal status, including any court rulings or settlement agreements.
• Q3 2026 earnings release to see if revenue stabilizes and whether further asset sales occur.
• Changes in related-party loans from the CEO’s family, which may signal liquidity needs.
• Any new project launches or land bank monetization efforts that could diversify revenue streams.