AsemconnectVietnam - After years of failing to meet business plan expectations, Hoang Quan Real Estate achieved profit exceeding its target in 2025 and set high growth targets for the coming period. However, the ability to realize its large-scale social housing strategy remains a crucial test for the company.

Profit Exceeds Target, But Stock Price Remains Unsuccessful
Hoang Quan Real Estate Consulting - Trading - Services Joint Stock Company (Hoang Quan Real Estate, ticker HQC) closed 2025 with results exceeding its target, with after-tax profit reaching VND70.2 billion, equivalent to 100.34% of the target.
On the stock exchange, instead of reacting positively to the company's first-ever achievement of its profit target in many years, HQC shares maintained a downward trend and continued to trade below par value.
According to statistics, from August 19, 2025 to May 19, 2026, HQC shares fell by 40.7%, from VND4,200 per share to VND2,490 per share. Currently, this stock is still trading below the MA200 moving average, indicating that the long-term technical trend has not really improved.
The stock price movement partly reflects investors' caution regarding the quality of the company's profits. If we break down the profit structure, Hoang Quan Real Estate's core business operations have not shown much improvement. In 2025, profit from core business operations (gross profit after deducting financial, sales, and administrative expenses) was negative VND85.9 billion compared to a negative VND77.8 billion recorded in the same period.
The main sources of profit for Hoang Quan Real Estate came from financial revenue of VND 121.4 billion and other income of VND53.3 billion. This other income mainly came from non-recurring activities such as VND33 billion in contract compensation and VND21.5 billion in profit from the liquidation of fixed assets. Conversely, the company also incurred late tax payment penalties of over VND15.7 billion.
Another noteworthy point is that Hoang Quan Real Estate's return rate has remained high for many years. Specifically, in 2024, the company achieved revenue of VND345.7 billion, but the value of returned goods reached VND412.2 billion. In 2025, returned goods amounted to VND77.9 billion, equivalent to 52.86% of total revenue. In the first quarter of 2026 alone, revenue reached VND15 billion, but returned goods amounted to VND9.8 billion, equivalent to 65.3% of total revenue.
This development shows that Hoang Quan Real Estate's revenue is still affected by the high rate of returned goods over several periods.

Beyond the issue of profit quality, cash flow continues to be a factor to monitor. Hoang Quan Real Estate has experienced three consecutive years of negative operating cash flow, with a loss of VND36.7 billion in 2023, a loss of VND1,711 billion in 2024, and a further loss of VND129 billion in 2025.
Amidst the continued pressure on cash flow, the company is continuously implementing capital increase plans, most notably the issuance of 50 million shares in the first quarter of 2026 to convert VND500 billion in debt into equity at a price of VND10,000 per share.
Following the completion of the aforementioned share issuance, the total number of shares of Hoang Quan Real Estate increased from 576.6 million units to 626.6 million units, corresponding to an increase in charter capital from VND5,766 billion to VND6,266 billion.
As of March 31, 2026, the company held approximately VND706.9 billion in cash and short-term financial investments, while outstanding debt was VND1,140.6 billion, equivalent to 20.9% of equity.
Given that HQC's market price was only around VND2,500-2,700 per share, the issuance at par value caused considerable controversy in the market. In essence, this transaction was not aimed at raising new capital but primarily at converting debt obligations into equity to improve the balance sheet.
One of the creditors participating in the swap is Hai Phat Investment Joint Stock Company (HPX), with a conversion value of approximately VND212 billion, equivalent to 21.2 million HQC shares.
To reassure shareholders about the swap price being significantly higher than the market price, Hai Phat Investment stated that Hoang Quan Real Estate committed to providing additional collateral such as HQC shares from a third party, cash, or real estate. According to the agreement, if after the one-year transfer restriction period, Hai Phat Investment divests at a value lower than VND212 billion, Hoang Quan Real Estate will compensate for the difference.
Social Housing Strategy and the Demand for Significant Resources
Despite existing difficulties, Hoang Quan Real Estate continues to pursue a strong growth strategy in the coming period.
At its 2026 Annual General Meeting of Shareholders on May 30th, Hoang Quan Real Estate will present to shareholders an ambitious growth plan for the new phase.
In 2026, the company aims to achieve revenue of VND1,200 billion and after-tax profit of VND90 billion, representing increases of 714.1% and 28.2% respectively compared to 2025.
According to the plan, revenue will come from several projects such as Golden City contributing approximately VND500 billion, a joint investment with Hoang Quan Mekong contributing approximately VND399 billion, the Tra Vinh New Urban Area project contributing approximately VND200 billion, HQC Tan Huong contributing approximately VND100 billion, and the remainder from the Golden Grand project.
Furthermore, Hoang Quan Real Estate aims to develop 50,000 social housing units between 2026 and 2030. The company also stated that it will expand its land bank by an additional 150 hectares, bringing the total to approximately 200 hectares, to support the development of around 40,000 social housing units.
Simultaneously, the company continues to expand its presence in many localities such as Dak Lak, Phu Tho, Da Nang, Hue, Quang Nam, and Ca Mau with social housing projects; while also developing commercial housing in Tay Ninh, Ho Chi Minh City, and industrial parks in Lam Dong and Vinh Long.
To realize this plan, Hoang Quan Real Estate estimates it needs approximately VND10,000 billion in medium and long-term loans, a figure far exceeding its current financial capacity. This is also the biggest challenge facing the company at present.
With many projects still facing legal delays, prolonged land clearance issues, and unstable business cash flow, the ability to mobilize large amounts of capital to simultaneously implement projects will depend significantly on the progress of legal procedures, implementation capacity, and the ability to improve the company's cash flow.
Even if it records its highest profit in many years in 2025, Hoang Quan Real Estate's capital efficiency will still be low compared to the industry average. Specifically, in 2025, the return on assets (ROA) will only reach 0.74% and the return on equity (ROE) will be around 1.3%, while the industry average is 3.95% and 14.47% respectively.
In fact, over the past year, the Government has continuously introduced many mechanisms to support the development of social housing, from preferential credit to removing legal obstacles. This is seen as a great opportunity for businesses pursuing this segment, including Hoang Quan Real Estate.
However, to transform opportunities into tangible results, businesses need not only ambition but also the capacity for implementation, sufficient capital, and stable financial health for the long term.
Currently, Hoang Quan Real Estate continues to demonstrate strong determination with its social housing strategy. Nevertheless, implementation capacity, capital mobilization ability, and operational efficiency will be crucial tests for the company to solidify market confidence in the coming period.
N.Nga
Source: VITIC/Dau tu Chung Khoan