Danang Housing Development Company's profits soar thanks to profit-taking on Vinhomes shares

In the context of declining revenue from core business, securities investment activities are emerging as the main source of revenue for Danang House, contributing to bringing extraordinary profits to the enterprise.

Revenue from real estate business is low, but businesses still report profits thanks to stock investments - Photo: DOAN CUONG

Danang Housing Development Investment Joint Stock Company (NDN) announced its consolidated financial report for the third quarter of 2025, recording revenue of VND 106 billion, double that of the same period last year.

Total expenses in the period decreased by 55%, down to 20 billion VND, while profit after tax increased sharply to 71 billion VND, 36 times higher than the 2 billion VND of the same period. This is also the highest profit in 10 quarters, since the second quarter of 2023.

Synthesized from NDN's financial reports

The company said that the third quarter 2025 profit increased compared to the same period due to positive changes in the stock market and increased profits from financial activities.

As of September 30, the company's trading securities portfolio had a market value of VND651 billion, 32% higher than the original price, corresponding to a provisional profit of VND159 billion. Most investments recorded profits, while the provision for depreciation narrowed to VND9 billion.

NDN sold a portion of Vinhomes (VHM) shares for profit, causing the book value to decrease from VND131 billion to VND93 billion. However, the market value of this investment still reached VND177 billion, equivalent to double the cost price thanks to the continuous increase in VHM's market price.

In addition, the enterprise has reduced its investment ratio at Gemadept (GMD) from 61 billion VND to 26 billion VND, this item currently records a temporary loss of nearly 2 billion VND.

The investment in Idico (IDC) with an original price of 44 billion VND that appeared in the second quarter is no longer in the portfolio, most likely divested. On the other hand, NDN added new shares of Vinaconex (VCG) with an original price of 44 billion VND.

Thanks to realizing part of the portfolio, especially VHM shares, the company achieved extraordinary profits, although the core business segment remained sluggish.

Accumulated revenue from sales and services in the first 9 months reached less than 20 billion VND, down 58% compared to the same period. Revenue from real estate transfer was only 2.5 billion VND.

In contrast, the financial sector became a bright spot with revenue reaching VND137 billion, up 40% year-on-year thanks to profits from stock investment activities.

At the same time, financial expenses decreased sharply to VND19 billion, mainly due to the reversal of provisions for devaluation of trading securities, while in the same period last year this item was up to VND66 billion.

Profit after tax for 9 months reached 145 billion VND, up 253% compared to 41 billion VND in the same period last year.

On the stock market, NDN shares have increased by nearly 6% in the past 3 months, fluctuating in the price range of 11,100 - 14,100 VND/share. At the end of the session on October 24, this code stopped at 12,600 VND/share.

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LINH NGUYEN

Source: https://tuoitre.vn/cong-ty-phat-trien-nha-da-nang-lai-tang-vot-nho-chot-loi-co-phieu-vinhomes-20251024151759576.htm