Novaland posts Q1 profit of $33 mln, shares hit three-year high

Novaland (HoSE: NVL) reported a strong turnaround in the first quarter of 2026, swinging to a net profit of VND860 billion ($32.63 million) from a loss a year earlier, as revenue doubled on increased property handovers.

The developer posted consolidated net revenue of VND3.59 trillion ($136 million) in the January-March period, twice the level recorded in the same period last year, according to its financial statement.

Revenue from property transfers accounted for the bulk at VND3.45 trillion ($131 million), up 111%, driven by handovers at projects including Sunrise Riverside, Aqua City, NovaWorld Phan Thiet, and NovaWorld Ho Tram, as well as land-use rights transfers. Service revenue totaled VND135 billion ($5.12 million).

Gross margin improved to 52.6% from 36.6% a year earlier, lifting gross profit nearly threefold to VND1.89 trillion ($71.63 million).

Financial income rose to VND815.7 billion ($30.95 million) from VND516 billion, though financial expenses also increased to VND859 billion ($32.59 million) from VND633 billion. Selling and administrative costs were reduced by 4.4% and 6.9%, respectively, while losses from other activities narrowed from VND261 billion to VND127 billion.

After expenses, the company reported a net consolidated profit of VND860 billion ($32.63 million), compared with a loss of VND476 billion a year earlier. The result represents 46.4% of its full-year profit target, though only 15.7% of its revenue goal.

Shares of Novaland have rallied sharply over the past two months despite broader market volatility linked to Middle East tensions. The stock closed at VND20,500 ($0.78) on April 29, up 95% and reaching its highest level since September 2023.

Project handovers accelerate

Novaland said construction has accelerated across key projects since early 2026, including subdivisions within Aqua City, phases such as The Tropicana and Habana Island at NovaWorld Ho Tram, and developments at NovaWorld Phan Thiet including Vip Ocean Villa, Novotel Phan Thiet hotel, and Royal Mansions.

New amenities have also been rolled out, including dining and sports facilities at multiple projects, while additional components such as beach clubs and family entertainment areas are under development.

In central Ho Chi Minh City, two projects are entering final stages ahead of delivery: Victoria Village is expected to begin handovers from the second quarter, while The Grand Manhattan is scheduled for delivery later this year.

The company aims to hand over 2,651 units in 2026 and issue more than 4,300 ownership certificates, including 752 units at Aqua City starting from June.

Balance sheet expansion

Total assets rose to over VND253 trillion ($9.6 billion) by the end of March, up VND12.13 trillion from the start of the year. Inventories accounted for the largest share at VND155.03 trillion ($5.88 billion).

On the liabilities side, customer prepayments increased to VND22.04 trillion ($836.36 million) from over VND20.35 trillion, while total borrowings rose to nearly VND69 trillion, mainly due to higher bank loans for project financing. Outstanding bonds declined by more than VND1.2 trillion to nearly VND23.84 trillion ($904.35 million).

On the Ho Chi Minh Stock Exchange, NVL shares closed Wednesday at VND20,500 ($0.78) apiece.