Novaland (NVL) posts solid development in first-half of 2019
Novaland (NVL) posts solid development in first-half of 2019
Novaland, a major real estate developer based in Ho Chi Minh City, posted very impressive growth in the first half of 2019, with a 53 per cent jump on-year in gross profit to VND2.163 trillion ($94.04 million).
Similarly, the group reaped nearly VND8.045 trillion ($349.78 million) in net sales and service provision revenue in the period, soaring 88 per cent higher than last year.
The number of apartment units handed over to customers in the period reached 2,936, up 185 per cent against the corresponding period last year and equal to 50 per cent of the annual target.
The group’s financial strength proved solid. As of June 30, 2019, its total asset value amounted to VND74.793 trillion ($3.25 billion) and equity touched VND22.198 trillion ($965.13 million), up 7 and 9 per cent, respectively, compared to the end of 2018 and representing a 27 per cent jump against the year prior.
Money flow and equivalents approximated VND7.326 trillion ($318.5 million) as of June 30, 2019. This year, Novaland is set to roll-out 6,500 items, a 44 per cent jump on-year, including 4,200 housing units and 2,300 items from its resort projects.
This year is of foremost importance in Novaland’s new development trajectory as the group will be developing aggressively into the resort property segment with a pipeline of projects deployed in diverse locations that have abundant potential in tourism and transport infrastructure, such as NovaWorld Phan Thiet and NovaHills Mui Ne Resort & Villas (Binh Thuan), NovaWorld Ho Tram (Ba Ria-Vung Tau), and NovaBeach Cam Ranh Resort Villas (Khanh Hoa), to name but a few.
By the end of June 2019, the total cumulative land fund of the group (including land areas under transaction) came to about 4,270ha, catering for the development of its three core product lines: housing and urban areas in Ho Chi Minh City, resort real estate, and satellite urban developments in neighbouring provinces.
This year marks a change in Novaland’s development vision as the group aims to grow into a leading multi-field business group in real estate, finance, tourism, and infrastructure development.
In the near future, the group will focus on propelling real estate growth in parallel to infrastructure and tourism development that supports real estate growth. In the further future, Novaland will approach financial investment and the development of diverse financial services.
In the recent July review, Novaland’s ticker (NVL) continued rank in the Vietnam Sustainability Index (VNSI) of the Ho Chi Minh City Stock Exchange (HSX). Not only that, NVL continues to appear in the Vietnamese stock market’s leading indexes VN30 and VN100.
VNSI is part of the Vietnamese government’s roadmap for the financial market’s sustainable development as it aims to encourage local firms to pay greater attention to corporate social responsibility, environmental protection and adaption to climate changes.
Particularly, VNSI seeks to set sustainable development standards for listed firms, supporting individual and organisational investors to identify “green” businesses for their investment, helping to foster the sustainable development journey of the whole economy, determining the best environmental, social, and governance standards, while simultaneously creating a fresh investment tool, from there pushing up the stock market and the national economic development.
To champion the VNSI basket, listed firms must undergo a very strict selection process. Accordingly, the main source of revenue of these firms must not come from fields unfriendly to the environment and social life; these firms must work on the set of criteria on sustainable development and post certain practical results. Finally, the firms will be scored carefully by the HSX’s leading experts.
Novaland’s continuous presence in the VNSI basket attests to the fact that, besides having an outstanding business strategy with optimal efficiency to shareholders, Novaland always pays due heeds to sustainable development, spreading positive effects to the community through practical activities.
In the first half of 2019, Novaland contributed over VND36 billion ($1.57 million) to the community, giving priority to implementing programmes having a long-term effect on the country’s development.
The most significant programmes are the “fresh water for schools” programme, accompanying the journey of the women’s basketball team belonging to the Ho Chi Minh City Women Basketball Federation, providing thousands of scholarships to studious pupils in Quang Nam province, or supporting the building of Long Khanh A3 primary school in Dong Thap province’s Hong Ngu district.
Pursuing sustainable development and continuously scouting for new investment opportunities, Novaland will continue to shine in the local real estate scene in the coming future.
