HHV – BOT toll segment continues to drive earnings – [In line]- Earnings Release

•  2Q26 net profit increased 10.9% YoY to VND144.9bn (USD5.4mn), driven by revenue growth and gross margin expansion.
• 1H26 net profit was in line with our expectations, achieving 48.1% of our full-year forecast.
• We see no pressure on our target price of VND14,700/share and will provide an update after further review.

Revenue growth was driven by the BOT and O&M segments

2Q26 net revenue increased 2.4% YoY to VND970.2bn (USD36.3mn), mainly driven by higher BOT toll and O&M revenue, offsetting weaker construction revenue. Specifically, BOT toll revenue rose 9.1% YoY, supported by stronger traffic volume on key routes such as the Bac Giang-Lang Son Expressway, the Deo Ca Tunnel, An Dan, and Bac Hai Van toll stations. Meanwhile, O&M revenue surged 123.5% YoY, driven by the expansion of O&M services to additional expressways, including Quang Ngai-Hoai Nhon, Quy Nhon-Chi Thanh, and Vung Ang-Cam Lo. In contrast, construction revenue declined 13.1% YoY.

Gross margin improved on stronger BOT and construction margins

2Q26 gross profit increased 13.9% YoY to VND440.9bn (USD16.5mn), lifting GM by 4.6% pts YoY to 45.4%. The improvement was mainly driven by an expansion in BOT toll GM (+3.3% pts YoY to 68.4%) and construction GM (+2.1% pts YoY to 6.6%). Meanwhile, O&M GM narrowed sharply by 18.3% pts YoY to 20.6%. We believe the sharp contraction in O&M GM during 2Q26 mainly reflects the timing of project revenue and cost recognition rather than a structural decline in operating efficiency.

2Q26 net profit increased on stronger revenue and GM; 1H26 NP was in line with full-year forecast

2Q26 net financial expenses increased 14.7% YoY to VND243.4bn (USD9.1mn), mainly due to higher interest expenses and lower profit from business cooperation contracts. Meanwhile, SG&A expenses remained broadly flat at VND19.3bn (USD721,495). Supported by revenue growth and gross margin expansion, NPAT increased 10.9% YoY to VND144.9bn (USD5.4mn).

Overall, 1H26 net revenue increased 11.6% YoY, achieving 36.2% of our FY26 forecast. Meanwhile, 1H26 net profit increased 17.3% YoY, in line with our expectations and reaching 48.1% of our FY26 forecast.

Read the full report: Here