PHR’s Q3 net profit rises 64% as operating profit falls 96%
PHR’s third-quarter after-tax profit rose 64% year on year, but operating profit fell 96%. A KIS Vietnam Securities report said a narrower gross margin in the rubber business and higher selling and administrative expenses weighed on regular operations, while other income drove profit growth.
Vietnamese rubber company CTCP Cao su Phước Hòa (PHR) reported net revenue of VND 659 billion in the third quarter of 2026, up 6.8% year on year, and after-tax profit of VND 433 billion, up 64%. An analysis report published by KIS Vietnam Securities on November 13 showed that operating profit for the period was just VND 5 billion, down 96% year on year, while the operating margin fell to 0.7%.
PHR’s third-quarter net profit rose, but operating profit fell year on year.（VietVance）
Rubber remained the main source of revenue, generating VND 634 billion in the third quarter, about 96% of total revenue and up 6.2% year on year. But gross profit from the business fell 34% to VND 86 billion, and its gross margin declined to 13.6%. KIS said an increase in lower-margin rubber trading revenue and a surge in rubber purchased externally at high prices during the quarter may have put pressure on the margin.
The industrial park business recorded revenue of VND 20 billion, down 2.7% year on year, and gross profit of VND 14 billion, down 4.7%. Selling and administrative expenses rose to VND 96 billion, about 2.8 times the level a year earlier. KIS said the increase was mainly related to a provision for the Science and Technology Development Fund.
Other income in the third quarter rose to VND 470 billion, about four times the level a year earlier, including VND 404 billion from the THACO project. This helped lift PHR’s pre-tax profit to VND 534 billion, up 68% year on year. The quarter’s 65.7% net profit margin was driven mainly by income outside operating activities.
KIS expects land compensation payments to continue affecting PHR’s fourth-quarter results.（VietVance）
Looking ahead to the fourth quarter of 2026, KIS expects PHR may continue to recognize land compensation payments from THACO related to the KCN Bắc Tân Uyên 1 project, which it sees as an important driver of after-tax profit growth for the quarter. KIS also expects lower rubber harvesting volumes may prompt the company to buy more raw materials externally, continuing to pressure profits in the rubber business. At the November 13 close, PHR shares were up 0.17% at VND 29,400 each.
Source: VietVance
