Real estate companies report profits, indicating potential market recovery


Hanoi: Despite the uncertain future of the real estate market, several prominent companies in the industry have recently announced significant profits. This has sparked optimism among investors and experts, suggesting that the market may be on track for a gradual recovery and a fresh phase of growth. Novaland, listed on the Ho Chi Minh Stock Exchange (HoSE) as NVL, has announced its financial report for the fourth quarter of 2023, with a decrease in revenue but a surprisingly strong increase in profit, reaching the highest level in the past three years at over 1.64 trillion VND, nearly 13 times higher than the same period in 2022. For the entire year of 2023, Novaland reported a net profit after tax of nearly 685 billion VND, lower than the 2.18 trillion VND in the previous year. The news of Novaland's significant profit in the fourth quarter, which contributed to the overall annual profit, comes as a surprise as the real estate market remained sluggish, and the company had to make efforts to accumulate fu nds for debt repayment in the past year, not to mention the challenges faced by many ongoing projects. One surprising case is Vinhomes (HoSE: VHM) of billionaire Pham Nhat Vuong. The company reported a net profit after tax of 33.3 trillion VND in 2023, a 14% increase compared to the previous year, thanks to growth in revenue. Vinhomes recorded consolidated net revenue of 121.4 trillion VND, a 49% increase compared to 2022, mainly driven by the handover of 9,800 low-rise real estate units in the Vinhomes Ocean Park 2 and 3 projects in Hung Yen province. The company also saw its total assets increase by 24% to 447 trillion VND, and its equity capital increase by 23% to 182 trillion VND by the end of 2023. Another case is An Gia Investment and Development Corporation (HoSE: AGG), which reported a pre-tax profit of 109 billion VND and a net profit of 65 billion VND in the fourth quarter. This represents a significant improvement compared to the losses of 72 billion VND and 186 billion VND in the same period o f the previous year. The company closed 2023 with a pre-tax profit of 582 billion VND, a 2.6-fold increase, and a net profit of 460 billion VND, a 4.8-fold increase compared to the previous year. This is also the highest net profit in the past five years and the second-highest in history (second only to 565 billion VND in 2018). It is worth noting that inventories decreased by 46% to 2 trillion VND, accounting for 21.6% of the assets, concentrated in projects such as The Westgate (1.38 trillion VND), The Standard (304 billion VND), The Signal (233 billion VND) and The Song (56 billion VND). Similarly, Khai Hoan Land Corporation (HoSE: KHG) reported a negative core business operation of 44 billion VND in Q4/2023 but managed to turn losses around and record a profit of over 7 billion VND due to investment cooperation. Century Real Estate Corporation - Cen Land (HoSE: CRE) also showed a slight improvement in Q4/2023, recording a modest profit of 1 billion VND. Many other real estate companies have reported significant decreases in revenue and profit. However, a positive point is that these companies have reduced losses through cost-cutting measures, streamlining operations, and strengthening sales and asset transfer to restructure their businesses after a few difficult years. Apart from large companies with various restructuring activities, small and medium-sized real estate enterprises have also shown more positive signals in terms of revenue. Although they have not yet reached the levels of previous years, it may indicate a warming up of the general real estate market. In the stock market, the overall picture of real estate stock prices is no longer pessimistic. According to statistics, only 21 listed real estate stocks experienced price declines in 2023. Two stocks remained unchanged with less than 1% decrease, while the remaining 59 stocks increased, with seven of them increasing by over 100%. The highest increase of 166% was recorded by the stock VC7 of BGI Corporation; DTD (Investment and Development Thanh Dat) and QCG (Quoc Cuong Gia Lai) also had similar increases, reaching 161% and 159%, respectively. Next are VPH of Van Phat Hung (113%), PDR of Phat Dat Real Estate (105%), SZC of Sonadezi Chau Duc./. Source: Vietnam News Agency