Phenikaa Group: Net profit "evaporated" 58% due to new hospital operations, education sector "saved" growth

Phenikaa's profit picture is being greatly impacted by the ecosystem expansion strategy, especially the trade-off of initial profits for long-term vision in the healthcare sector.

A report sent to the Hanoi Stock Exchange (HNX) shows that in the first half of 2025, Phenikaa Group's after-tax profit reached VND241 billion, down 58% compared to VND576 billion in the same period last year. Return on equity (ROE) also narrowed from 6.4% to 2.6%.

According to VIS Rating's report, the reason for the sharp decline in profits is that Phenikaa University Hospital in Hanoi has only been in trial operation since December 2024, causing high initial costs, reducing the Group's EBITDA margin in the first half of 2025 from 43% (in 2024) to 37% and weakening operating cash flow.

As of the end of June, Phenikaa Group's equity was over VND9,200 billion. Liabilities increased significantly, in which outstanding individual bonds increased from VND900 billion to VND1,420 billion, while bank loans increased by more than VND1 trillion to VND5,100 billion.

Although the healthcare sector is initially suffering losses, the education sector is becoming a new growth driver for Phenikaa Group, contributing the second largest share to revenue and profit.

In 2024, revenue in this sector will increase by 77% to VND665 billion thanks to active recruitment activities. The student population will increase by 44% to 26,000 people and is expected to continue to increase to 34,000 people in 2025. The Group is also investing in a new dormitory and medical practice room, expected to be completed in 2026.

For the key segment of artificial stone, the main export market is the US, which recorded a decline in sales in the first half of 2025. The reason is that housing construction spending here has slowed down and exports are subject to an additional 10% tax. VIS Rating assesses that revenue from the artificial stone segment in the US will depend on consumer purchasing power and new tax policies.

Source: https://daibieunhandan.vn/phenikaa-group-lai-rong-boc-hoi-58-do-van-hanh-benh-vien-moi-mang-giao-duc-cuu-canh-tang-truong-10394467.html