Vietnam Rubber Group posts highest quarterly profit in 5 years

Shares of Vietnam Rubber Group (HoSE: GVR) have surged 28% over the past three weeks after the state-controlled corporation reported its highest quarterly profit in five years, driven by a sharp increase in land compensation income and rubber tree liquidation gains.

GVR rose from around VND28,800 per share in late March to VND36,800 ($1.4) by mid-May.

According to the company’s consolidated Q1/2026 financial statements, revenue rose 56% year-on-year to nearly VND8.85 trillion ($335.66 million).

Cost of goods sold climbed at a faster pace, up 61% to about VND6.51 trillion ($246.98 million), causing gross profit growth to slow to 43% at nearly VND2.34 trillion ($88.67 million). Gross profit margin narrowed to 26% from 29% a year earlier.

However, other income surged 212% from a year earlier to over VND1.13 trillion ($43.02 million), helping push pre-tax profit to over VND2.96 trillion ($112.36 million) and net profit to over VND2.51 trillion ($95.38 million), up 89% and 85%, respectively.

The results marked the group’s strongest quarterly earnings since the first quarter of 2021.

Management said higher natural rubber selling prices were the main driver behind the increase in profitability.

VPBank Securities (VPBankS) said rubber prices remained elevated during the quarter due to stronger global demand, particularly from China’s tyre manufacturing and industrial sectors, while supply was constrained by seasonal factors and rising oil prices.

At the same time, other income received an additional boost from more than VND700 billion ($26.56 million) in rubber tree liquidation proceeds, up 124% year-on-year, nearly VND380 billion in compensation income, up more than 42-fold, and VND18.4 billion from disposals of fixed assets, up more than 2.6 times from the same period last year.

During the quarter, Vietnam Rubber Group received land compensation payments related to the Bac Tan Uyen 1 Industrial Park (IP) project and the VSIP III IP project in Binh Duong province.

VPBankS said land compensation income and rubber tree liquidation activities would likely remain major earnings drivers for the group in the second quarter and throughout 2026.

The brokerage expects the company to continue receiving compensation payments from the Bac Tan Uyen 1 IP project while liquidating rubber plantations to hand over land for industrial park developments in Dong Nai province.

At the end of April, construction officially began on phase three of the Long Duc IP, one of three major IP projects planned this year on land currently managed by the rubber group.

Separately, authorities in Dong Nai are pushing the group to accelerate land handovers for infrastructure and urban development projects.

At a meeting on May 8, Vice Chairman of Dong Nai People’s Committee Ho Van Ha met with Vietnam Rubber Group to discuss commitments related to clearing rubber trees and handing over land tied to compensation and resettlement projects.

Dong Nai is currently implementing compensation and support plans for 33 land plots and projects covering nearly 4,300 hectares of rubber land managed by units affiliated with Vietnam Rubber Group.

Most of the land is tied to key transport infrastructure projects, resettlement zones and land earmarked for future auctions.

Local authorities said the province had entered a new development phase following the National Assembly’s approval of Resolution 30/2026/QH16 establishing Dong Nai city, effective from April 30, 2026.

The province has urged Vietnam Rubber Group to prioritize tree clearance and land handovers for urgent land auction projects and major transport routes.

Under a draft commitment agreement, projects with approved compensation plans are expected to receive cleared land during May and June, while rubber tree liquidation for projects still completing compensation procedures will also be accelerated to meet construction schedules.

Nationally significant infrastructure projects and key municipal developments will be prioritized first, local authorities said.