TTC Land (SCR) Q3 2026 Profit Doubles Despite 43% Revenue Drop

Overview

TTC Land (SCR), listed on HOSE, reported Q3 2026 net revenue of nearly VND245bn, down 43.2% year-on-year, but net profit more than doubled to VND3.9bn. The profit growth was driven by rental income from the newly opened AEON Mall at TTC Plaza Da Nang and a sharp reduction in management expenses following debt recovery efforts.

Key Facts

• Q3 2026 net revenue: nearly VND245bn, down 43.2% YoY but up 30.1% QoQ and 62.9% QoQ from Q1.
• Q3 2026 net profit: VND3.9bn, up 2.1x from VND1.82bn in Q3 2025.
• Profit after tax attributable to parent company shareholders: nearly VND4.96bn, nearly 4x YoY.
• Rental service revenue: nearly VND100bn in Q3, up 43.4% QoQ, following AEON Mall opening at TTC Plaza Da Nang in early July 2026.
• Management expenses: down 88.3% YoY to VND18.7bn from VND159.6bn, due to cost control and debt recovery.
• 9M 2026 net revenue: VND581.4bn, down 38.8% YoY.
• Inventory decreased by nearly VND2,000bn, while investment property rose to over VND3,552bn.

What Happened

Saigon Thuong Tin Real Estate JSC (TTC Land, ticker SCR) released its consolidated Q3 2026 financial statements, showing net revenue of nearly VND245bn, a 43.2% decline from the same period in 2025. Despite the revenue drop, net profit after tax more than doubled to VND3.9bn, and profit attributable to parent company shareholders reached nearly VND4.96bn, nearly four times the prior-year figure. The company attributed the profit growth to the operation of AEON Mall at TTC Plaza Da Nang, which opened in early July 2026 and pushed rental service revenue to nearly VND100bn in the quarter, up 43.4% from Q2.

However, gross profit fell 77.6% to VND54.9bn as cost of goods sold rose to VND190.1bn, dragging gross margin down to 22.4% from 56.8% a year earlier. Financial income increased 78.1% to nearly VND74.9bn, mainly from lending interest, capital use fees, cooperation interest, and bank deposits. Financial expenses rose 29% to VND93.7bn, with interest expenses alone at nearly VND86bn, up over 21%. Selling expenses increased to VND14bn from VND5.5bn, while management expenses plunged 88.3% to VND18.7bn from nearly VND159.6bn, thanks to strict cost control and enhanced debt recovery. The company also recorded a VND1.33bn profit from associates, reversing a loss of over VND34bn in the same period last year, related to its investment in Tin Nghia - A Chau JSC, the developer of Dao Kim Quy project. After all expenses and other income of nearly VND6.9bn, pre-tax profit was nearly VND11.6bn, roughly flat YoY. For the first nine months of 2026, net revenue reached VND581.4bn, down 38.8% YoY.

Market Context

SCR closed at VND3,820 on November 2, 2026, on HOSE. The real estate sector has faced challenges from tight credit and slow project approvals, but TTC Land’s shift toward recurring rental income from commercial properties like TTC Plaza Da Nang provides a more stable revenue stream. The company’s inventory reduction of nearly VND2,000bn and increase in investment property to over VND3,552bn reflect a strategic pivot toward holding assets for lease rather than immediate sale.

Strategic Significance

The doubling of net profit despite a sharp revenue decline highlights TTC Land’s ability to manage costs and generate cash flow from operations. The AEON Mall at TTC Plaza Da Nang is a key asset that not only boosts rental income but also enhances the company’s brand and foot traffic. The significant reduction in management expenses and the recovery of receivables indicate improved operational efficiency. For long-term investors, the focus should be on the sustainability of rental income and the company’s ability to deleverage, given the high interest expenses. The investment in Tin Nghia - A Chau JSC, while currently profitable, remains a minority stake and may not contribute consistently.

What to Watch

• Q4 2026 earnings release, expected in January 2027, to see if rental income continues to grow.
• Updates on debt recovery and management expense trends.
• Occupancy rates and rental yields at TTC Plaza Da Nang and other commercial properties.
• Progress on inventory reduction and any new project launches.
• Interest expense trends and the company’s debt repayment schedule.