TNH Hospital Group Posts 7th Straight Quarterly Loss Despite 29% Revenue Growth

Overview

TNH Hospital Group (TNH), one of the largest private hospital chains in northern Vietnam, reported a net loss of nearly VND 24 billion in the second quarter of 2026, marking its seventh consecutive loss-making quarter. Revenue grew 29% year-on-year to VND 158.7 billion, driven by new facilities, but costs rose even faster, keeping the company in the red.

Key Facts

• Q2 2026 net loss attributable to parent shareholders: nearly VND 24 billion (VND 23.8 billion).
• Q2 revenue: VND 158.7 billion, up 29% year-on-year.
• Cost of goods sold increased 32% in Q2.
• TNH Việt Yên hospital revenue surged 77% to nearly VND 24 billion.
• International Hospital Thái Nguyên and TNH Phổ Yên revenue grew 10% and 13%, respectively.
• H1 2026 cumulative revenue: VND 276 billion (+28% YoY); net loss: nearly VND 71 billion.
• Full-year 2026 guidance: revenue of VND 836 billion (+64% YoY), net loss of VND 51 billion.

What Happened

According to its Q2 financial statements filed with HOSE, TNH Hospital Group recorded revenue of VND 158.7 billion, a 29% increase from the same period last year. Management attributed the growth to contributions from new facilities, particularly TNH Việt Yên hospital and the pharmaceutical segment. TNH Việt Yên alone saw revenue jump 77% to nearly VND 24 billion, while International Hospital Thái Nguyên and TNH Phổ Yên posted gains of 10% and 13%, respectively.

Despite the top-line growth, the company reported a pre-tax loss of nearly VND 24.8 billion. Management explained that cost of goods sold rose 32% in Q2, driven by additional hiring for the International Hospital Thái Nguyên phase 3 and TNH Lạng Sơn projects, which increased operating expenses. Financial costs also climbed due to higher interest expenses on loans for the TNH Việt Yên hospital project.

Market Context

TNH shares closed at VND 8,400 on August 6, 2026, on the HOSE. The stock has been under pressure as the company has now posted seven consecutive quarterly losses. The healthcare sector in Vietnam remains attractive long-term due to demographic trends, but TNH’s aggressive expansion strategy has yet to translate into profitability. The company’s high foreign ownership (over 54% per SSI) indicates continued international investor interest despite the losses.

Strategic Significance

TNH’s expansion into new hospitals and pharmaceutical operations is a deliberate strategy to build scale in northern Vietnam’s underserved healthcare market. However, the current cost structure—rising depreciation, interest expenses, and pre-operating costs—means profitability is still several quarters away. Management’s guidance for a full-year loss of VND 51 billion suggests that 2026 will be another transition year. Investors are betting on the long-term revenue potential of the new facilities, but the company must demonstrate cost discipline and operational efficiency to justify the current valuation.

What to Watch

• Q3 2026 earnings release: whether revenue growth accelerates and losses narrow.
• Progress on International Hospital Thái Nguyên phase 3 and TNH Lạng Sơn: when these facilities reach full operational capacity.
• Interest rate environment: any changes in borrowing costs could significantly impact financial expenses.
• Foreign ownership trends: whether the 54% foreign stake changes as losses persist.
• Management’s guidance update: any revision to the full-year loss target of VND 51 billion.