Taseco Land strengthens core business, reports 40% profit growth

Taseco Land JSC (HoSE: TAL) recently released its Q3/2025 financial report, showing a significant improvement in core business performance.

Specifically, Q3 net revenue reached VND 1,238 billion, nearly four times higher than the same period last year. Correspondingly, cost of goods sold and services provided also surged to VND 802 billion, tripling year-on-year.
Despite the increase in costs, gross profit soared to VND 437 billion, a sixfold increase, resulting in a gross profit margin improvement from 21.95% to 35.30%, indicating more efficient core operations.

In terms of financial activities, Q3/2025 financial income reached VND 17 billion, while financial expenses rose 18.3% to VND 43 billion.

Operating costs also grew in line with business expansion. Selling expenses tripled to VND 54.7 billion, and administrative expenses increased 45% to VND 73.6 billion. However, net profit after tax for Q3/2025 still reached VND 223 billion, up 20% year-on-year.

For the first 9 months of 2025, cumulative net revenue totaled VND 2,171 billion, up 74%. Real estate sales contributed VND 1,155 billion, accounting for 51% of total revenue and rising 1.5 times year-on-year.

Notably, the company recorded an additional VND 636 billion in revenue from long-term land use rights leasing with completed infrastructure in industrial parks – a key factor in diversifying income and stabilizing mid- to long-term cash flows.

The cost of goods sold related to these two core segments also rose accordingly, driving up total COGS. However, this is considered appropriate as Taseco Land expands its project portfolio in 2025, especially in northern Vietnam, where the company is focusing on both urban residential and industrial real estate development.

After deducting expenses, Taseco Land’s cumulative pre-tax profit reached VND 381.6 billion, up 47% year-on-year. Net profit after tax for the 9-month period reached VND 283 billion, reflecting a 40% increase over the same period last year.

According to its 2025 business plan, Taseco Land targets consolidated revenue of VND 4,332 billion, 2.6 times higher than 2024, and consolidated net profit of VND 536 billion, in line with its prudent strategy during the early stages of business scale-up.

As of September 30, 2025, total assets reached VND 13,096 billion, up 40% from the beginning of the year, reflecting the company’s expanding scale. Inventory made up 55% of total assets, equivalent to VND 7,263 billion, up 78% year-on-year.

Most of this inventory value comes from ongoing development costs at real estate projects, indicating rapid project execution and large-scale investment, which are expected to fuel a performance surge from Q4/2025 onward, as more projects become eligible for revenue recognition.

In terms of financial structure, total liabilities stood at VND 6,951 billion, of which borrowings accounted for VND 3,785 billion, mostly long-term debt. Notably, in September 2025, Taseco Land successfully issued private shares to professional investors, raising VND 1,492.65 billion. The new capital is being used to restructure bank debt, helping reduce financial leverage and boost equity.

As a result, Taseco Land’s debt-to-equity ratio (D/E) fell sharply from 112% to 61% compared to its mid-year report. The capital structure is shifting towards greater stability and sustainability, focusing on mid- to long-term funding sources. This enables the company to proactively finance large-scale projects while minimizing liquidity risk.

As the real estate market enters a recovery phase, Taseco Land’s strategy of reinforcing financial fundamentals and maintaining cautious yet flexible growth is seen as a sound approach, laying the foundation for sustainable profit growth in 2026.

On the stock market, TAL shares are currently trading at around VND 48,000, up nearly 200% from the IPO price when TAL debuted on HoSE on August 1, 2025 – making it one of the strongest performers in the real estate sector.

This strong upward momentum reflects investor confidence in Taseco Land’s long-term growth strategy, project execution capabilities, and financial management during a transformative phase.