In a recent annual report, Le Viet Hai, Chairman of Hoa Binh Construction Group (HBC), announced that the company has navigated a period of intense struggle following the prolonged impacts of the pandemic and global geopolitical shifts.

For 2025, HBC reported revenue exceeding 4,620 billion dong and after-tax profit of nearly 251 billion dong. Both figures represent significant decreases from the previous year, with revenue down over 28% and profit down nearly 74%. Hai attributed these results to a comprehensive restructuring phase amidst a volatile construction sector.

Despite past challenges, the head of Hoa Binh Construction noted a "bright spot emerging like a new dawn." As of early 2026, the total value of carry-over contracts (backlog) for the year reached approximately 10,000 billion dong. This provides a strong foundation for the 2026 revenue target and ensures continuity for subsequent phases. The backlog's quality has also improved, marked by a more diverse project portfolio and strategic clients.

Hai added that 40% of new hires in 2025 are former Hoa Binh employees who chose to return. He views this as an indicator of HBC's strong company culture and internal cohesion. By the end of 2025, Hoa Binh's workforce stood at nearly 1,300 people, a net increase of 35 from the beginning of the year.

Le Viet Hai, Chairman of Hoa Binh Construction Group, in an interview with the press in 12/2022. Photo: Thanh Tung

Hoa Binh Construction has recorded profits for two consecutive years, following losses of thousands of billions of dong in 2022-2023. In its core business, the company secured large-scale projects, including Eaton Park Thu Duc (1,900 billion dong), the H2 Hoang Huy Commerce apartment and commercial service complex in Hai Phong (1,500 billion dong), and NewTown Diamond Da Nang (900 billion dong). The total value of contracts won last year exceeded 13,500 billion dong.

However, HBC only achieved just over half of its revenue target and about 70% of its profit target. The revenue shortfall primarily stemmed from factors related to project implementation progress and conditions. For profit, besides the impact of revenue scale, Hoa Binh also faced increasing input costs, including raw materials and labor, amid market fluctuations, which affected profit margins.

For this year, the company aims for 10,000 billion dong in revenue, more than double the previous year, while after-tax profit is projected to remain at 250 billion dong. If successful, this would mark the first time since 2022 that the company returns to a five-digit revenue milestone.

HBC anticipates continued growth in the construction market in 2026, driven by public investment, housing development, and industrial construction demand. However, the sector's overall landscape still presents challenges, necessitating enhanced management capabilities and operational efficiency from businesses.

Since 8/2025, Hoa Binh Construction has experienced several changes in its senior leadership. Le Van Nam resigned as general director. The company appointed Le Viet Hieu, permanent deputy general director and son of Le Viet Hai, to manage operations until a new appointment is made.

On the UPCoM exchange, HBC shares closed today's session up 2% at 5,100 dong per unit. The stock's market price has remained below par value since 9/2023. Based on the price-to-book (P/B) ratio, Hoa Binh Construction's shares are valued at approximately 0,88 times, indicating they are trading below book value.

Tat Dat