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Dong Hai Ben Tre (DHC VN) – H1 2026 Earnings – Packaging Growth Drives Earnings
Summary of H1 2026 results and outlook of Dong Hai Ben Tre JSC (DHC VN)
- Net revenue rose 18.0% y/y to VND2,013bn, while net profit surged 98.6% y/y to VND315bn. This stronger-than-expected earnings upsurge was supported by the dual tailwind: (1) revenue growth following the higher average selling prices (ASPs) of both segments and better sales volume reaching full utilization of the packaging box segment, and (2) the lower y/y Old Corrugated Containers (OCC) input costs.
- The Middle East oil-flow disruption is expected to have limited impact on DHC’s end markets, with risks concentrated mainly on the cost side. While geopolitical uncertainty could keep oil, freight and input costs volatile, domestic packaging consumption should stay supported by retail activity, e-commerce and exports. As such, the main impact on DHC would likely come through higher freight and OCC costs, as well as steam costs following coal prices increase, rather than sales volume.
- Domestic kraft-paper supply-demand dynamics should remain broadly balanced despite new capacity in 2026. ~800k t/y is expected to be added, partly replacing capacity removed during late-2024 environmental shutdowns. Continued growth in domestic packaging demand should absorb a meaningful share of the additional supply, while a more diversified product mix should limit direct competitive pressure. Meanwhile, a gradual demand recovery in China could provide an additional export outlet and further ease domestic competition.
- For H2/2026, net revenue is forecasted to be broadly stable versus H1. Revenue growth should moderate from H1’s high base, while the higher ASPs remain the main y/y growth driver. The sharper h/h earnings decline mainly reflects GPM normalization as the low-cost OCC benefit fades and financial income reduces as cash is deployed into GL3, while a higher effective tax rate also weighs on the y/y comparison.
- Giao Long 3 (GL3) project update: DHC has signed contracts covering 74% of the VND2,250bn total capex, with structural works completed and machinery installation starting June. DHC has injected VND700bn into Giao Long Paper Ltd. and is planning a further VND180bn by August 31. GL3 remains on track for H2/2027 commercial operations, 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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