VLB Q1 2026 Net Profit Up 27% to VND 74.1B on Land Leveling Surge

Overview

VLB (Bien Hoa Construction and Building Materials JSC, UPCoM: VLB) reported Q1 2026 net profit of VND 74.1 billion, up 27% year-on-year, driven by a surge in land leveling sales and improved gross margin. The company achieved over 33% of its full-year profit target in the first quarter, which is typically a low season due to the Tet holiday.

Key Facts

• Q1 2026 net profit reached VND 74.1 billion, up 27% from Q1 2025.
• Revenue was VND 351.5 billion, up 3.7% year-on-year.
• Gross profit rose 21.6% to VND 111.6 billion; gross margin improved to 31.8% from 27.1%.
• Land leveling sales volume surged to 218,130 m3 from 19,237 m3 a year earlier.
• Stone sales volume fell to nearly 1.7 million m3 from the prior year.
• Short-term financial investments stood at VND 648 billion, nearly 60% of total assets.
• Total liabilities decreased to VND 317 billion from VND 465 billion at year-end 2025, partly due to dividend payments.

What Happened

According to VLB’s consolidated financial statements for Q1 2026, net revenue rose 3.7% year-on-year to VND 351.5 billion, while cost of goods sold fell 2.9% to VND 239.9 billion, boosting gross profit by 21.6%. Management attributed the outperformance to a sharp increase in land leveling sales volume, which jumped to 218,130 m3 from just 19,237 m3 in Q1 2025. The company also raised selling prices to offset higher fuel costs. Financial income increased due to large cash deposits.

For full-year 2026, VLB targets production and sales of 6.8 million m3 of stone, total revenue of over VND 1,411 billion, and pre-tax profit of VND 280 billion. After Q1, the company had completed 24.9% of its revenue target and 33.1% of its profit target.

Market Context

VLB shares trade on UPCoM, Vietnam’s unlisted public company market. The stock has been supported by expectations of increased demand for construction materials from major public infrastructure projects, including Long Thanh International Airport, the expanded Ho Chi Minh City-Long Thanh-Dau Giay expressway, and Ring Road 4. The Q1 earnings beat reinforces the positive outlook for the sector, though the stock’s liquidity on UPCoM remains limited.

Strategic Significance

VLB’s strong Q1 performance highlights the direct benefit of Vietnam’s public investment push for construction material suppliers. The company’s focus on five strategic stone quarries with total remaining reserves of over 84.4 million m3 positions it to capture demand from multi-year infrastructure projects. The sharp reduction in liabilities and large cash position provide financial flexibility, but the reliance on land leveling—a volatile segment—adds execution risk.

What to Watch

• Q2 2026 earnings release to see if land leveling momentum continues.
• Progress on legal procedures for expanding the Tan Cang 1 and Soklu quarries.
• Updates on disbursement of public investment for key infrastructure projects.
• Any changes in stone pricing or input costs (fuel, explosives).
• Dividend policy for 2026 given the strong cash position.