CDC

Chương Dương ·HOSE ·2026Q1

▼▼ Declining sharply

Leverage and liquidity require close discipline Debt/equity 0.52x
Price
20,400
Latest close
02 Jun 2026
P/E 54.55x
P/B 1.33x
EPS 374
BVPS 15,313
ROE 3.4%
ROA 0.8%
Profit Margin 2.2%
Asset Turnover 0.37x
Equity Mult. 4.13x

TTM · Applied to: EPS, ROE, ROA, Net Margin, Asset Turnover, Debt/Equity

What Is Changing

On a TTM 2026Q1 basis, CDC is losing revenue quickly, though margins have not been hit proportionally yet — profit momentum has been slowing across consecutive periods. More notably, operating cash flow is significantly negative relative to profit — this is pressure that needs close monitoring.

TTM REVENUE
VND 976bn
−19.2%YoY
NET MARGIN
2.20%
−0.8ppYoY
TTM NET PROFIT
VND 21bn
−39.9%YoY
CFO / Net Income
-8.46x
negative cash flow vs profit
Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 Q2'23
Revenue 216.9 240.1 289.4 229.5 256.9 438.9 234.8 277.8 214.0 408.9 312.3 329.6
Growth -10% -17% +26% -11% -41% +87% -16% +30% -48% +31% -5%
Net Income 0.9 10.3 8.2 2.0 1.8 22.6 0.8 10.4 0.8 10.5 5.0 0.7
Net Margin 0.41% 4.27% 2.85% 0.89% 0.71% 5.15% 0.34% 3.76% 0.35% 2.57% 1.59% 0.22%

Drivers of CDC's profit

TTM

Net profit attributable to parent declined vs last year, mainly due to lower gross profit. Supporting and offsetting drivers:

Finance costs ↓ 21.8bn
Financial income ↑ 11.6bn
Gross profit ↓ 17.4bn
Other profit ↓ 5.3bn
Administrative expenses ↑ 3.2bn
Tax ↑ 2.8bn
TTM

Net profit attributable to parent declined vs prior quarter, mainly due to lower financial income. Supporting and offsetting drivers:

Finance costs ↓ 2.9bn
Tax ↓ 1.1bn
Financial income ↓ 1.7bn
Other profit ↓ 1.1bn
Gross profit ↓ 0.9bn
Administrative expenses ↑ 0.6bn

Financial Highlights

Detailed analysis of each financial dimension

ROE = Profit Margin × Asset Turnover × Equity Multiplier

2025Q1 8.9% = 3.0% × 0.61 × 5.01
2026Q1 3.4% = 2.2% × 0.37 × 4.13

ROE fell from 8.9% to 3.4% — all three components weakened, with leverage being the main drag.

Net margin: 2.2% -0.8pp Asset turnover: 0.37x -0.23x Leverage: 4.13x -0.88x

Is the profit sustainable?

Margins narrowed but earnings quality remains clean — pressure is mainly operational.

very positive positive stable watch under pressure

What is driving the margin?

Net margin narrowed to 2.20%, falling 0.8pp. The main pressure comes from SG&A / Revenue rose 0.7pp and Gross margin fell 0.3pp (in addition, Net financial result / Revenue rose 2.7pp added support while Other profit / Revenue fell 0.4pp remained a drag).

Margin is under pressure from multiple sides — temporary and structural components need to be separated to properly assess the risk.

Profitability trend

Net Margin 2.20% −0.8pp
Gross Margin 5.93% −0.3pp
SG&A / Revenue 2.73% +0.7pp

TTM YoY · 2025Q1 -> 2026Q1

Is capital being used efficiently?

Capital efficiency for residential developers should be read alongside project cycles and handover timing — ROIC of 1.1% fluctuates with handover cycles.

Is capital being deployed efficiently?

ROIC edged up to 1.13%, rising 0.8pp. That translates to 1.13 in after-tax operating profit for every 100 units of operating capital. The main driver is NOPAT margin rose 1.7pp, with capital turnover fell 0.46x; while invested capital expanded strongly by 574bn.

For real estate developers, ROIC moves with project cycles — this is a reference signal, and the real assessment needs upcoming handover periods.

CAPITAL EFFICIENCY TREND

TTM YoY · 2025Q1 -> 2026Q1

ROIC 1.13% +0.8pp
NOPAT Margin 2.05% +1.7pp
Capital Turnover 0.55x −0.46x
Average Invested Capital 1,770.1bn +573.9bn

Balance Sheet

ROIC for residential developers swings with project cycles and handover timing — the balance sheet below adds perspective. Capital structure is typical for the real estate sector — liabilities at 2.57x equity, net debt at 1.75x equity.

Development inventory ended the period at 1,054.3bn, about 36.6% of total assets — reflecting projects in progress awaiting handover.

Over the last 12 months, working capital absorbed 160.5bn of cash, mainly because of higher receivables and higher inventories. Part of that drag was offset by higher payables.

Working Capital Drivers

TTM YoY · 2025Q1 -> 2026Q1

Receivables increased → lower CFO: −118.9bn
Inventories increased → lower CFO: −747.3bn
Payables increased → higher CFO: +705.7bn

Is financial risk significant?

High leverage combined with negative operating cash flow — this area needs close monitoring.

Leverage & Liquidity

Leverage warrants monitoring, with net debt / equity at 1.75x and interest coverage only at 0.52x.

At present, short-term debt accounts for 57.3% of total debt, cash equals 7.2% of debt, and total debt stands at 1,526.4bn.

Leverage for residential developers should be read alongside project cycles, development inventory, and handover timing.

Watchpoints

Net leverage is elevated

Net debt / equity stands at 1.75x, increasing balance-sheet pressure.

Interest coverage is thin

Interest coverage is 0.52x, leaving limited room to absorb financing costs.

Leverage and liquidity trend

Net Debt / Equity 1.75x −0.12x
Interest Coverage 0.52x +0.32x
Cash / Debt 7.2% −19.9pp
Short-term Debt / Total Debt 57.3% −17.3pp
CFO / NI -8.46x +15.32x

TTM YoY · 2025Q1 -> 2026Q1

Cash Flow

High leverage combined with cash flow below reveals the actual liquidity pressure. Operating cash flow reached -612.4bn in 2025, against investing cash flow of -94.0bn.

Post-investment cash flow was negative +706.4bn. Financing cash flow was positive +807.5bn.

CFO / net income was -8.46x.

Track how much investment can be funded internally from operating cash flow.

For residential developers, FCF and CFO swing with project cycles — negative during investment phases and positive at handover — not representative of single-year efficiency.

Cash Conversion

TTM Cash Conversion · 2025Q1 -> 2026Q1

CFO TTM 179.6bn +628.9bn
Cash Capex
FCF TTM

Investment Takeaway

The business is under real pressure, but the current picture has not turned broadly adverse. A notable area has clearly weakened, making the near-term outlook hard to call bright; even so, other parts of the business are still holding up, with leverage and liquidity remaining the main constraint, with interest coverage at 0.52x. The next watchpoint is capital efficiency, with ROIC at 1.1%. The main offsetting support comes from earnings conversion is confirmed, with CFO/NI at -8.46x.

Improvement: earnings conversion looks more confirmed, with CFO / net income at -8.46x.

Watchpoint: Capital efficiency needs cycle context.

Key risk: leverage and liquidity still require discipline, with interest coverage only at 0.52x.

Statement Data

Item 2025 2024 2023 2022 2021
Net Revenue
1,240.0 1,168.8 1,303.7 1,325.0 796.6
Cost of Goods Sold
1,189.9 1,100.7 1,207.9 1,263.2 0.0
Gross Profit
50.1 68.1 95.8 61.9 54.0
Financial Expenses
59.2 64.2 59.5 40.3 -13.9
Selling Expenses
0.1 1.5 1.9 3.3 -1.9
General and Administrative Expenses
26.5 38.5 40.4 43.3 -28.6
Operating Profit
20.0 3.5 18.6 -5.5 32.3
Profit Before Tax
20.8 11.7 20.9 12.1 44.0
Net Income
15.6 23.3 10.7 8.6 36.6
Profit Attributable to Parent
15.3 24.0 8.6 7.0 34.3
Earnings per Share
354.00 1,094.00 389.00 188.00 837.00

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