DHB Q1 Net Profit Surges 18x to 227B VND, Exceeds Full-Year Target, Stock Hits Ceiling

Overview

Dam Ha Bac Fertilizer Joint Stock Company (DHB) reported a Q1/2026 net profit of 227 billion VND, an 18-fold increase year-on-year, surpassing its full-year profit target by approximately 17%. The stock immediately hit the daily ceiling of 14,700 VND on the HNX, with trading volume surging from thousands to hundreds of thousands of shares.

Key Facts

• Q1/2026 net profit after tax reached 227 billion VND, up nearly 15x YoY (18x in pre-tax profit).
• Revenue rose 21% YoY to 1,405 billion VND, while cost of goods sold increased only 3%, lifting gross profit to 366 billion VND (2.5x YoY).
• Gross margin improved sharply from 12.5% to 26%.
• Financial costs fell 47% to 35 billion VND, and selling expenses dropped 39% to 20 billion VND.
• The company’s full-year 2026 pre-tax profit target was 242 billion VND; Q1 pre-tax profit of 284 billion VND exceeded this by 17%.
• Accumulated losses stood at 1,863 billion VND as of end-Q1.
• Parent company Vietnam Chemical Group holds 97.66% of DHB, making it no longer a public company under regulations.

What Happened

Dam Ha Bac Fertilizer (DHB) released its Q1/2026 financial statements showing a dramatic earnings turnaround. Net profit after tax surged to 227 billion VND from just 15 billion VND in the same period last year, marking the highest quarterly profit in nine quarters. The improvement was driven by a combination of higher revenue, better margins, and cost controls.

According to the filing, revenue grew 21% to 1,405 billion VND, but cost of goods sold rose only 3%, allowing gross profit to more than double. The company also reduced financial expenses by 47% and selling expenses by 39%. As a result, pre-tax profit hit 284 billion VND, already exceeding the full-year target of 242 billion VND by 17%.

Market Context

DHB shares on the HNX surged to the daily ceiling of 14,700 VND immediately after the earnings announcement, with trading volume spiking from a few thousand shares to hundreds of thousands. The stock has doubled in price over the past two months, reflecting growing investor optimism about the fertilizer sector and DHB’s recovery. Despite the strong quarterly performance, the company carries accumulated losses of 1,863 billion VND, and its free float is minimal due to 97.66% ownership by Vietnam Chemical Group.

Strategic Significance

DHB’s Q1 results demonstrate a significant operational turnaround, driven by favorable input costs and disciplined expense management. The fertilizer sector benefits from stable domestic demand and government support for agriculture. However, the company’s status as a non-public company (due to parent ownership exceeding 97%) limits liquidity and may deter institutional investors. The ability to sustain margin improvements and reduce accumulated losses will be key to long-term value creation.

What to Watch

• Q2 2026 earnings release to confirm if margin improvement is sustainable.
• Any plan to reduce accumulated losses or restructure debt.
• Potential corporate actions from parent Vietnam Chemical Group, including possible delisting or share consolidation.
• Fertilizer price trends and input cost movements (gas, coal).
• Regulatory changes affecting public company status and minority shareholder rights.