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Dong Hai Ben Tre (DHC VN) – Q1 2026 Earnings – Solid Profit Growth Despite Rising Cost Pressures
Summary of Q1 2026 results and outlook of Dong Hai Ben Tre JSC (DHC VN)
- Earnings were solid, but the y/y growth was amplified by a low base. Net revenue rose 17.1% y/y to VND967bn, while net profit increased 81.4% y/y to VND137bn. Kraft paper remained the main contributor, supported by higher ASP and near-full utilization, while packaging box revenue rose on higher utilization and ASP. On a quarterly basis, net profit was broadly stable versus VND135bn in Q4/2025, with net margin edging up to 14.2% from 13.6%, suggesting profitability was solid but not unusually high.
- The Middle East oil-flow disruption should affect the industry mainly through cost inflation, not direct demand or supply shocks. Higher oil prices have raised transportation, freight, steam, and glue-related costs, creating near-term pressure on producers and end customers. However, Vietnam has been proactive in diversifying oil suppliers, reducing the risk of a prolonged oil shortage. Meanwhile, domestic packaging demand remains supported by essential retail activity, e-commerce growth, and export activity. Vietnam’s pro-growth policy stance, including the 10% GDP growth target, continued public investment, lower lending-rate efforts, and energy-supply stabilization measures, should further cushion near-term consumption pressure.
- Industry tailwinds continue to support pricing power for compliant producers. Domestic supply-demand conditions in medium and testliner kraft paper have become more balanced after stricter environmental enforcement removed ~1mn tons of non-compliant capacity in the North (~16% of 2025 national output). Although ~500,000 tons/year of new capacity is expected in 2026, most additions are outside DHC’s core Southern market. Together with structural demand drivers — retail expansion, e-commerce growth, resilient exports, and sustainable packaging — this should support utilization and partial ASP pass-through.
- For the remaining 9M/2026, net revenue is projected to increase 8.3% y/y to VND3,038bn, mainly supported by higher ASPs in both kraft paper and packaging boxes. However, net profit is projected to decline 14.8% y/y to VND270bn, reflecting lower gross profit margin from higher input costs, lower financial income as cash is deployed for GL3, and a higher tax rate after Giao Long 2’s tax incentive expired.
- Giao Long 3 (GL3) project update: DHC began GL3 construction in Q4/2025 and has signed contracts covering 71% of the project’s VND2,250bn total capex. We maintain our forecast that GL3 will start commercial operations in Q3/2027, adding premium kraftliner capacity to support DHC’s next growth phase
Click here to read our comments on DHC’s previous quarterly performances.
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