Listed domestic real estate firms swimming in huge profits in 2017
Listed domestic real estate firms swimming in huge profits in 2017
Over the course of 2017, 59 large-scale domestic real estate firms which were listed on the Vietnamese bourse, including Vingroup and NovaLand, were reported to have inundating profits totalling at VND155.093 trillion ($6.8 billion), up 39 per cent against 2016.
Specifically, at the end of 2017, Vingroup (HSC: VIC) was ranked as the No.1 domestic real estate firm in sales revenue and after-tax profit, recording a consolidated sales revenue of $3.97 billion, 57 per cent up on-year. Vingroup alone constituted 58 per cent of the total sales revenue gained by listed real estate firms.
Hence, VIC’s consolidated after-tax profit recorded at the end of 2017 mounted up to $186.6 million, up 74 per cent and exceeding the initially planned target by 81 per cent.
Source: Unaudited financial statements of ten listed real estate firms (Unit: million dollars)
A real estate market analyst from CBRE Vietnam asserted that the domestic real estate market, especially in Ho Chi Minh City, would most likely witness further impressive securities trading activities due to the healthy performance recorded in 2017, indicating willingness from domestic and foreign investors to inject capital into the market.
Another noteworthy real estate agent was NovaLand Group (HSC: NVL), which attained over $511.2 million worth of sales revenue and $90.58 million worth of after-tax profit, up 58 and 22.5 per cent against the same categories in 2016.
Despite being only recently listed on the Ho Chi Minh Stock Exchange (HSX), the VRE ticker of Vingroup’s retail arm, Vincom Retail acquired total sales revenue of over $240 million and after-tax profits of $88 million, asserting its position among the top three listed real estate firms in terms of sales revenue and profit.
Over the same period, the tickers of Phat Dat Real Estate Corporation and Kinh Bac City Development Holding Corporation also drew great attention on the stock market due to PDR’s $43.95-million urban land transfer deal and KBC’s $19.68-million transfer of The EverRich Infinity condominium development project.
