Industrial parks forecast lower profits due to pandemic

Apr 14th at 10:23
14-04-2020 10:23:07+07:00

Industrial parks forecast lower profits due to pandemic

Industrial park owners are forecasting a drop in 2020 profits, blaming the ongoing damage inflicted by the novel coronavirus outbreak.

The Dong Nai-based Industrial Urban Development JSC No 2 (D2D) expects post-tax profit to slump by 51.5 per cent year-on-year to VND178.7 billion (US$7.7 million).

D2D also estimates that revenue this year will fall by 49 per cent to VND414 billion.

In 2019, D2D recorded net revenue of VND763 billion and post-tax profit of VND368.5 billion, 2.7 and 4 times higher than in 2018, respectively.

The company attributed the sudden slump to the investment efficiency of the Loc An KDC project in Long Thanh District.

Sonadezi Long Thanh Holding Company (SZL), also in Dong Nai, has revised its revenue target in 2020 to VND409 billion, down 4 per cent year-on-year, and post-tax profit of VND87 billion, down 16 per cent compared to 2019.

Sonadezi Long Thanh has authorised its board of directors to adjust its business plans to match the complicated developments of COVID-19. However, shareholders will need to be advised if the targets fall by more than 30 per cent.

Tin Nghia Industrial Park Development JSC (TIP) expects its revenue to reach VND166 billion, down 24 per cent against 2019, and pre-tax profit to touch VND93 billion, down 19 per cent year-on-year.

TIP said this year the company will face difficulties regarding slow and complicated administrative procedures, higher costs for compensation and site clearance, and less FDI due to COVID-19.

SONADEZI Chau Duc Shareholding Company (SZC) has also forecast post-tax profit of VND115 billion, down 14 per cent.

The COVID-19 pandemic is becoming increasingly complicated, SZC’s Board of Directors said, and that the company's investment attraction will be negatively affected.

In 2020, revenue from industrial land leasing, factory leasing, management fees and industrial infrastructure services is estimated at VND282 billion. The company is also continuing the construction of the Chau Duc Urban Industrial Park and Golf Course.

Higher profit

Among the industrial park operators suffering the severe impacts of the pandemic, some still expect a higher profit in 2020.

Phuoc Hoa Rubber JSC (PHR) has forecast total revenue of VND2.46 trillion, an increase of 52 per cent, and pre-tax profit of VND1.15 trillion, double the figure in 2019.

The board of directors at PHR said it would respond to each specific scenario during the COVID-19 pandemic.

The company will also restructure projects it has invested in, including Truong Phat Rubber JSC and Phuoc Hoa Kampong Thom Rubber Development Co Ltd.

According to Viet Dragon Securities Co, PHR's industrial parks were located in the most favourable locations in Binh Duong Province so rental rates are expected to remain high, at around US$60-80 per metre square in Tan Binh and $90 per metre square in Nam Tan Uyen.

Rental demand is expected to continue to increase as FDI in Viet Nam, and in particular Binh Duong Province, is still rising, making the industrial zone segment a key driver for PHR.

However, these comments were made by VDSC before the COVID-19 pandemic.

Vinh Phuc Infrastructure Development (IDV) aims to earn VND264 billion in revenue, and VND151.6 billion in post-tax profit, up 62 per cent and 54 per cent, respectively, compared to 2019.

Remarkably, thanks to the large profit made by its subsidiary VPID Ha Nam, IDV's revenue and profit in Q1 reached VND109 billion and VND60.6 billion, respectively.

These earnings in Q1 fulfilled nearly half of the target set for 2020.

This year, IDV plans to increase investment attraction at the Chau Son Industrial Park, and focus on expanding the Khai Quang Industrial Park and developing new industrial park projects.

bizhub



RELATED STOCK CODE (7)

NEWS SAME CATEGORY

Paper, packaging firms hit by COVID-19 fallout

Domestic paper and packaging firms face a shortage of raw materials and a slump in both domestic and export demand.

Ministry launches investigation into anti-dumping duties on polyester yarn

The Ministry of Industry and Trade (MoIT) has launched an investigation that may result in anti-dumping duties on polyester filament yarn (PFY) originating from...

Switch to new products helps businesses survive coronavirus crisis

Some businesses in Vietnam are adapting to the coronavirus lockdown by switching to new products and services.

Retail price of electricity to drop 10 per cent in three months

The government has approved the proposal of the Ministry of Industry and Trade to decrease the retail price of electricity by 10 per cent over the course of three...

Vietnam mulls electricity price cut to ease Covid-19 burden

The government has given the thumbs up to a proposed electricity price discount of 10 percent for the months of April, May and June.

Ministry launches investigation into anti-dumping duties on polyester yarn

The Ministry of Industry and Trade has issued a decision on investigating anti-dumping duties on polyester filament yarn (PFY) with HS codes: 5402.33.00, 5402.46.00...

Vietnam accelerating ventilator production

The crucial ventilating equipment used to save the lives of coronavirus patients are becoming a commodity much sought after by many countries, including Vietnam.

Conference discusses incentives for solar power growth in Vietnam

The event aimed to discuss the significance of designated incentives for the growth of solar power in Vietnam from the perspective of stakeholders and chalk out the...

Vietrade supports exporters amid COVID-19 outbreak

The Ministry of Industry and Trade’s Vietnam Trade Promotion Agency (Vietrade) has prioritised 5,000 exporters that need help in finding markets amid the COVID-19...

Face masks, hand sanitisers added to price stabilisation programme in HCM City

Face masks and hand sanitisers have been added to the list of essential goods covered by the price stabilisation programme in HCM City amid the COVID-19 crisis.


MOST READ


Back To Top