DIC Group (DIG) Q1/2026 Net Loss Narrows to 10B VND, Revenue Misses 5% Target

Overview

DIC Group (DIG) reported a consolidated pretax loss of over 10 billion VND for the first quarter of 2026, narrowing from a loss of nearly 37 billion VND in Q1/2025. Revenue fell 5% year-on-year to 145 billion VND, and the company has achieved only 5% of its full-year revenue target of 3,000 billion VND. The results highlight ongoing operational challenges despite improved gross profit.

Key Facts

• Q1/2026 consolidated pretax loss: over 10 billion VND, compared to a loss of nearly 37 billion VND in Q1/2025.
• Q1/2026 net revenue: 145 billion VND, down 5% year-on-year.
• Gross profit rose 34% to nearly 40 billion VND, driven by a 15% decline in cost of goods sold.
• Financial costs increased 8% to nearly 26 billion VND; selling and administrative expenses rose 11% to 59 billion VND.
• Full-year 2026 targets: revenue of 3,000 billion VND (down 36% from 2025) and pretax profit of 600 billion VND (down 27%).
• Cash and cash equivalents stood at over 2,700 billion VND as of end-Q1/2026, down about 1,000 billion VND from the start of the year, largely from a successful 150 million share offering in December 2025 at 12,000 VND/share.
• Total assets: over 17,700 billion VND, down over 1,000 billion VND from the start of the year.

What Happened

According to DIC Group’s consolidated financial statements for Q1/2026, the company recorded net revenue of 145 billion VND, a 5% decline from the same period last year. Despite a 34% increase in gross profit to nearly 40 billion VND, higher financial costs (up 8% to nearly 26 billion VND) and selling/administrative expenses (up 11% to 59 billion VND) pushed the company into a pretax loss of over 10 billion VND. However, this loss narrowed significantly from the 37 billion VND loss in Q1/2025.

The company’s full-year 2026 plan targets consolidated net revenue of 3,000 billion VND and pretax profit of 600 billion VND, representing declines of 36% and 27% respectively from 2025 actuals. After the first quarter, DIG has only completed about 5% of its revenue target and remains far from its profit goal.

Market Context

DIG shares closed at VND 15 on April 10, 2026, unchanged from the previous session, with volume of 7.86 million shares. The stock trades on HOSE. The company has a history of missing business plans from 2022 to 2024, though 2025 saw a sharp improvement thanks to project transfers. The Q1/2026 results suggest that the positive momentum from 2025 has not carried into the new year, and the low revenue achievement rate raises questions about full-year target feasibility.

Strategic Significance

DIG’s ongoing losses, despite a narrowed gap, indicate that the company’s core business remains under pressure. The reliance on project transfers for 2025’s turnaround may not be sustainable. The large work-in-progress costs (nearly 6,800 billion VND) and advance compensation payments (over 4,000 billion VND) at key projects like Long Tan and Bac Vung Tau suggest that cash flow is tied up in development, limiting financial flexibility. The successful share offering in late 2025 provided a cash buffer, but the rapid drawdown of cash (down 1,000 billion VND in Q1) signals high cash burn. Investors should monitor whether DIG can accelerate project monetization to meet its ambitious 2026 targets.

What to Watch

• Q2/2026 earnings release for signs of revenue acceleration or further cost control.
• Progress on key projects: Long Tan and Bac Vung Tau, particularly any milestone in compensation or construction.
• Updates on project transfers or asset sales that could boost revenue and profit.
• Changes in debt levels and cash position, especially if cash continues to decline.
• Any revision to full-year guidance if the low Q1 achievement persists.