Realtors tops stock market’s loser list
Realtors tops stock market’s loser list
As many as 19 listed firms operating in the construction and real estate sectors have recently reported losses in the second quarter of 2012, accounting for nearly 30 percent of the total number of declared losers.
Though most were medium-d enterprises, there were still large firms, such as Song Da Industrial and Urban Zone Development Investment Joint Stock Co, coded SJS, included in the list, according to Dau Tu newspaper.
In Q2/2012, both net revenue and original costs of SJS posted negative figures, at VND1.9 billion and VND1.2 billion respectively. Its consolidated profit in the quarter was a negative VND737 million.
In the same period last year, SJS posted consolidated profit of VND540 million.
Although its revenue from financial activities increased by VND3.75 billion year-on-year, this was not enough to offset for financial costs, sale costs and management costs.
Therefore, SJS posted a VND13.1 billion loss in Q2/2012, while the figure in Q2/2011 was VND24 billion.
Accumulatively, in H1/2012, SJS’s net revenue reached VND10.2 billion, but its consolidated profit was more than VND7 billion in the red due to the huge original costs of goods for sale.
But thanks to a refund of over VND16 billion in financial costs, in H1/2012, SJS suffered a loss of VND5.6 billion.
Recently, the price of SJS-coded shares has changed in accordance with the company’s business results.
Particularly, in early June, the price of SJS-coded shares hovered around VND38,000-39,000 per unit, while it is now ranging around VND31,000 per share.
Stocks of other companies in the construction family of Song Da, also incurred losses in Q2/2012, like Song Da 9.06 Joint Stock Co, coded S96, and Song Da 27 Joint Stock Co, coded S27.
In Q2/2012, the after-tax profit of S96 was more than VND600 million in the red.
S96 said that in Q2/2012, the company did not gain revenue as it is reducing its proportion in the construction sector and gradually to the business of real estate projects.
Meanwhile, due to the general gloomy trend of the real estate market, the company has not sold any realty projects yet, resulting in no revenue in the quarter.
S96-coded share price movements also reflected the actual situation of the company.
Accordingly, after dropping from the threshold of VND9,000 per share early this year to VND7,000 per share in June, S96 share prices continued to fall to around VND5,000 per share.
Similarly, S27 also posted unsatisfactory business results with a net loss of over VND3.07 billion in Q2/2012, much higher than the loss of VND1.96 billion in the same period last year, lifting the accumulated loss in H1/2012 to VND6.27 billion.
This was the sixth straight quarter S27 has posted a loss. The company estimates its losses at VND7.6 billion in 2012.
Due to losses from business activities, S27-coded share prices also devalued 30 percent, from VND3,000 per share in early June to only VND2,000 per share right now.
In the same boat
Apart from companies in the Song Da family, many other realty firms also failed to avoid losses mainly due to the bearish situation of the real estate market.
Other real estate companies in the list of losers included Vietnam Real Estate Investment Joint Stock Co (coded VNI), Vinaconex Tourism Development and Investment Joint Stock Co (coded VCR) and Song Da Cao Cuong Joint Stock Co (coded SCL).
After the difficulties in the first half of 2012, investors expect real estate enterprises will be more successful in H2/2012, at least since the pressure on interest rates has been eased.
In addition, the initial recovery of the economy has also helped enterprises gradually escape from hardship.
According to Vo Tri Thanh, vice director of the Central Institute for Economic Management, in H2/2012 businesses will perform better thanks to the efforts to accelerate disbursement of public investments and increase the reach of credit support packages while the index of industrial production (IIP), including consumption, inventories and imports, is moving upwards.
TUOITRENEWS
