Ha Do Group shares tumble to two-year low amid solar tariff uncertainty

Shares of Vietnam's Ha Do Group (HoSE: HDG) fell to their lowest level in more than two years on Monday, extending a three-month selloff driven by weaker earnings, regulatory uncertainty surrounding preferential solar power tariffs, and reduced foreign investor holdings.

Ha Do Group's shares closed at the daily limit-down price of VND18,600 ($0.7), with trading volume surging to more than 7 million shares. More than 700,000 shares remained unmatched at the floor price by the end of the Monday session.

The stock has lost about 32% of its value since late March, falling from around VND27,270 per share.

The weakness has not been limited to Ha Do. Other listed renewable energy companies have also come under pressure. Refrigeration Electrical Engineering Corp (HoSE: REE) has declined about 25% since mid-March to VND47,250 ($1.8) on Monday, while Gia Lai Electricity JSC (HoSE: GEG) has fallen roughly 17% to VND13,450 over the same period.

Ha Do Group is one of Vietnam's major developers in both renewable energy and real estate. Since 2018, the company has expanded its power portfolio through a series of acquisitions and now operates eight power plants, including hydropower, solar and wind projects, with combined installed capacity of 462 megawatts. The plants generated 1.76 billion kilowatt-hours of electricity in 2025.

The company also owns several residential developments in Hanoi and Ho Chi Minh City, including HaDo Centrosa Garden, HaDo Park View, and HaDo Parkside.

While real estate was historically the group's main earnings driver, the energy business has become its largest contributor in recent years, accounting for an estimated 80-90% of revenue and gross profit in 2025.

Investors are closely monitoring regulatory reviews of two solar projects that currently benefit from Vietnam's feed-in tariff (FIT) mechanism: the Hong Phong 4 Solar Power Plant and the SP Infra1 Solar Power Plant.

Hong Phong 4 was identified in a 2023 inspection conclusion by the Government Inspectorate reviewing compliance with planning and investment regulations under Vietnam's Power Development Plan VII and its adjusted version.

Meanwhile, the Ministry of Industry and Trade has said SP Infra1 was among a number of projects granted commercial operation status and eligible for FIT pricing before obtaining final construction acceptance approval from relevant authorities. The project achieved commercial operation on Septemberr 4, 2020, while official acceptance was granted on February 28, 2023.

Authorities have proposed that projects found not to have fully met FIT eligibility requirements should no longer receive preferential tariffs. Instead, electricity prices would be recalculated under the applicable regulations, with previously received tariff differences recovered through offsets against future payments.

The regulatory review has already affected Ha Do's earnings.

The company reported first-quarter 2026 revenue of VND694 billion ($26.39 million), up 14% from a year earlier, but net profit fell by half to VND103 billion ($3.92 million). Net profit attributable to shareholders dropped 68% year-on-year to VND50 billion.

Electricity remained the group's largest business segment, generating VND508 billion ($19.32 million) in revenue, or 74% of total revenue, broadly unchanged from the same period last year.

Revenue growth came mainly from real estate, which contributed VND49 billion ($1.86 million) after recording no revenue in the corresponding quarter of 2025, while revenue from services and investment property leasing increased nearly 10%.

However, administrative expenses rose sharply from VND55 billion to VND258 billion ($9.8 million), largely because of additional provisions.

According to Rong Viet Securities, Ha Do booked an additional provision of about VND193 billion ($7.34 million) related to the difference between the FIT price and Vietnam's transitional electricity price for the period between the commercial operation date and the project's official construction acceptance date for the Infra1 solar project.

Foreign investor activity has also weighed on market sentiment.

In its second-quarter portfolio review announced on June 13, MarketVector Indexes removed Ha Do from the MarketVector Vietnam Local Index, the benchmark tracked by the VanEck Vietnam ETF (VNM ETF).

Separately, Finland-based PYN Elite Fund, which had steadily increased its holding in Ha Do in recent years, sold 300,000 shares on June 3, reducing its ownership from 10.4% to 9.96%.