Phat Dat Real Estate Development Corp

Phat Dat Real Estate Development Corp maintains a conservative capital structure with a debt-to-equity ratio of 0.38, significantly below the industry median of 1.2 for real estate developers in Vietnam. The company's liquidity position is mixed: while the current ratio of 2.17 suggests short-term solvency, the operating cash flow of -1.75 trillion VND indicates ongoing cash burn, and cash and equivalents are reported at zero. This combination of strong working capital and negative operating cash flow raises questions about the sustainability of its current operations without external financing.

Profitability metrics reveal a stark divergence from industry norms. The company's return on equity (ROE) of 0.45% and return on assets (ROA) of 0.22% are well below the industry median ROE of 8.5% and ROA of 3.2% for Vietnamese real estate developers. The operating income of 75.69 billion VND is driven by a gross profit margin of 20.5%, but this is offset by high operating expenses and a negative free cash flow of 47.57 billion VND. These figures suggest that while the company is generating revenue, it is not effectively converting it into sustainable cash returns for shareholders.

Geographically, Phat Dat's revenue is concentrated in Vietnam, with no disclosed international operations. Segment-wise, the company operates as a single business unit focused on real estate development, with no material diversification into rental or property management. This lack of diversification increases exposure to local market conditions, regulatory shifts, and currency volatility.

The company's growth trajectory is uncertain. While revenue in the latest period was 8.26 billion VND, there is no disclosed year-over-year growth rate or forward-looking guidance. Analysts have assigned a mean price target of 22,633.33 VND, but the absence of a clear growth narrative and the negative operating cash flow raise concerns about the company's ability to deliver consistent returns. The lack of capital expenditure (reported as -35.8 billion VND) suggests either a reduction in development activity or accounting treatment of certain costs.

Risk factors include liquidity constraints and the potential for dilution. The company's net cash position is negative after subtracting total debt, and while dilution is currently assessed as low, the absence of cash and equivalents increases reliance on external financing. No recent equity issuance or dilutive events are disclosed, but the company's capital structure leaves room for future dilution if financing needs arise.

Recent events include the publication of the latest financial report (market data), which provides the most recent operating and balance sheet data. No material regulatory changes or major project announcements are disclosed in the available data. The company's risk assessment remains unchanged from the previous period, with liquidity and dilution as the primary concerns.

Analysts project 43.2% upside to a mean price target of 22,633 VND, reflecting strong buy recommendations.

Operating margin of 9.17% ranks best-in-class compared to the 0.16% median for the real estate cohort.

Net margin of 6.03% significantly outperforms the cohort median of 0.09%, demonstrating superior profitability efficiency.

Debt-to-equity ratio of 0.38 is below the cohort median of 0.52, indicating a conservative leverage position.

Free cash flow grew 18.1% year-over-year to 588.7 billion VND, showing improving cash generation capabilities.

The company faces high credit risk, posing significant potential threats to financial stability and debt servicing.

Cash conversion ratio of -35.12% ranks in the bottom quartile, highlighting weak cash generation relative to earnings.

Long-term debt increased to 5.34 trillion VND in FY2025, rising despite significant revenue declines.

Revenue VND 360.58B, −44,4% YoY; Operating income +1 644,4% YoY.

• ▍Revenue VND 360.58B, −44,4% YoY
• ▍Operating income +1 644,4% YoY
• ▍Net income +20 461,8% YoY
• ▍Free cash flow +1 358,8% YoY
• ▍Net margin 87.0%

Revenue VND 1.32T, +61,2% YoY; Operating income +270,2% YoY.

• ▍Revenue VND 1.32T, +61,2% YoY
• ▍Operating income +270,2% YoY
• ▍Net income +232,1% YoY
• ▍Free cash flow +432,6% YoY
• ▍Net margin 38.9%

Revenue VND 821.69B, +33,1% YoY; Operating income −76,9% YoY.

• ▍Revenue VND 821.69B, +33,1% YoY
• ▍Operating income −76,9% YoY
• ▍Net income −77,3% YoY
• ▍Free cash flow −84,1% YoY
• ▍Net margin 18.9%

Revenue VND 1.50T, −58,4% YoY; Operating income −32,9% YoY.

• ▍Revenue VND 1.50T, −58,4% YoY
• ▍Operating income −32,9% YoY
• ▍Net income −39,0% YoY
• ▍Free cash flow −40,2% YoY
• ▍Net margin 75.6%

Revenue VND 3.62T; Operating income VND 2.37T.

• ▍Revenue VND 3.62T
• ▍Operating income VND 2.37T
• ▍Net margin 51.5%