TV4 EVNPECC4 Q3 2026 Profit Doubles 103% Despite Revenue Fall

Overview

EVNPECC4 (ticker TV4, HNX) reported Q3 2026 net revenue of more than VND 62 billion, down 10.5% year-on-year, while pre-tax profit rose nearly 108% to more than VND 11.5 billion, according to the company’s quarterly financial statements and an explanatory filing sent to regulators. The profit jump came from a sharp fall in cost of goods sold rather than top-line growth, and the results were published after the detention of the company’s former chairman and other senior executives in a case linked to Tổng công ty Truyền tải điện Quốc gia (the National Power Transmission Corporation).

Key Facts

• Q3 2026 net revenue: more than VND 62 billion, down 10.5% year-on-year.
• Cost of goods sold fell nearly 25%, from VND 52.4 billion to VND 39 billion.
• Gross profit rose 35% to nearly VND 23 billion; gross margin improved from 24.3% to 36.6%.
• Selling and enterprise management expenses edged down from VND 12 billion to VND 11.5 billion.
• Pre-tax profit reached more than VND 11.5 billion, up nearly 108% year-on-year.
• 9M 2026 revenue was VND 166 billion (versus VND 167 billion) and after-tax profit was VND 16 billion, up about 57%.
• On 11 June 2026, police detained then-chairman Lê Cao Quyền, then-CEO Trần Cao Hỷ, deputy CEO Nguyễn Như Đông and chief accountant Trần Lê Thanh Bình.

What Happened

In its explanatory document to regulators, EVNPECC4 said the profit increase was mainly because cost of goods sold fell by more than revenue did, combined with cost-control and savings measures aimed at lowering service costs. The company reported Q3 2026 net revenue above VND 62 billion, down 10.5%, while cost of goods sold dropped nearly 25% to VND 39 billion, lifting gross profit 35% to nearly VND 23 billion and widening gross margin to 36.6% from 24.3%. Enterprise management expenses slipped to VND 11.5 billion from VND 12 billion, leaving pre-tax profit above VND 11.5 billion, up nearly 108% year-on-year.

For the first nine months of 2026, revenue was roughly flat at VND 166 billion against VND 167 billion a year earlier, while after-tax profit reached VND 16 billion, up about 57%. Operating cash flow weakened sharply: net cash from operations was only about VND 16 million, versus more than VND 43.5 billion a year earlier, and cash and equivalents stood at about VND 36.1 billion at end-September, down more than VND 11 billion since the start of the year. The results follow a period of senior-management upheaval. On 11 June 2026 the company received notice from the Ministry of Public Security’s investigative police that Quyền, Hỷ, Đông and Bình had been detained in a case involving the national power transmission corporation. At an extraordinary shareholders’ meeting on 24 August, Quyền and Hỷ were removed from the board; Vương Anh Dũng was elected chairman for 2026-2031 and Đồng Trinh Hoàng was appointed CEO, with Nguyễn Đăng Quang named deputy CEO in late September.

Market Context

TV4 trades on the HNX and closed at VND 12,300 on 29 October 2026. The stock sits in the small-cap construction and infrastructure consultancy segment, where order books are tied to power-grid and transmission investment. The profit beat is driven by margin and cost effects rather than volume, and the accompanying cash-flow deterioration is a notable divergence from the earnings headline. The broader Vietnamese market context for the session is not detailed in the source material.

Strategic Significance

The core question for long-term holders is whether the margin expansion is structural or a one-off. A gross margin jump of more than 12 percentage points on falling revenue points to project mix and cost discipline rather than pricing power, and the near-zero operating cash flow suggests earnings are not yet converting into cash. The governance reset under chairman Vương Anh Dũng and CEO Đồng Trinh Hoàng is the second variable: the company’s pipeline depends on relationships with state power-sector entities, the same ecosystem at the center of the criminal case. TV4 has targeted VND 403 billion of 2026 revenue and more than VND 42 billion of after-tax profit; with VND 16.4 billion booked in nine months, it has met about 39% of the profit plan.

What to Watch

• Q4 2026 and full-year results, to see whether the 39% profit-plan completion rate closes toward the VND 42 billion target.
• Operating cash flow in the Q4 statement, after 9M net cash from operations fell to about VND 16 million.
• Any regulatory or court developments in the case involving the national power transmission corporation and former TV4 executives.
• Disclosure of new power-grid consultancy contracts signed under the new board and CEO.
• HNX filings on related-party transactions and governance changes following the August shareholders’ meeting.