Novaland targets VND14.88 trillion in revenue and introducing 8,000 products this year
Novaland targets VND14.88 trillion in revenue and introducing 8,000 products this year
Novaland Group (NVL) has set the target of introducing around 8,000 products to the market this year, an increase of 25 per cent on-year, and to achieve a revenue of VND14.88 trillion ($646.96 million), exceeding last year's figure by 36 per cent.
A strategy of three key poles with three core product lines
At Novaland’s annual general meeting held last weekend in Ho Chi Minh City, Novaland’s leaders affirmed that the long-term vision remains unchanged, but its mid- and short-term strategy will drive investment into essential and more affordable products.
In 2020, Novaland plans to introduce 8,000 products of different types to the market and achieve a 36 per cent rise in turnover against 2019
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Since 2019, Novaland’s development strategy has been geared toward synchronous development and mutual support among its business. Its strategy has been consistent with the vision: “Novaland – a leading economic group in real estate, finance, tourist destinations, and infrastructure development”.
The group continues to focus on developing three key product lines in the medium- and high-end segments based on its current land bank of nearly 5,000 hectares, including residential projects in central Ho Chi Minh City, a satellite township project in Dong Nai province, and second-home projects in some key tourism destinations such as Binh Thuan, Nha Trang, and Vung Tau. This land bank will secure the growth of Novaland in the next 10-15 years.
Novaland's strategy not only focuses on developing projects with convenient transportation combined with full facilities but also developing value-added services and utility ecosystems of international standards to bring more sustainable benefits to customers.
The firm's management board flagged 2020 as a challenging year. According to Bui Xuan Huy, CEO of Novaland, the group actively implemented appropriate measures to mitigate the possible impacts of COVID-19 on the group, shareholders, and customers. The group spread out its employees into different workplaces. Remote working facilities were deployed and back-up plans were put in place to assure the groups' continuous business operations under different business continuity planning scenarios. During the peak of the pandemic, 60 per cent of Novaland staff was working from home while the rest maintained normal on-site activities.
Through the implementation of technology such as SAP, Office 365, and online meetings, Novaland could maintain business virtually undisturbed even during the pandemic.
Regarding finance, Novaland carried out stress tests on its financial model with different scenarios. These tests are to assess the stability of business, cash flow, and repayment capabilities of the group for debts due in 2020 and 2021. It also has divestment plans for projects that it has already achieved expected profits and reinvest the proceeds in new projects which have higher internal rates of return.
In 2019, Novaland has successfully mobilised $600 million from the international capital market, of which $310 million was drawn down in the fourth quarter of 2019 while the remaining $290 million is available for business operation in 2020. During the peak of the COVID-19 epidemic in the first quarter of 2020, around $100 million was disbursed, proving the strong confidence of foreign investors in the Vietnamese real estate sector and in Novaland.
At the same time, Novaland actively reviewed and reduced operating costs to optimise work efficiency while maintaining continuity in business and operations.
Consistent on 2020 yearly plan
Thanks to many timely and efficient solutions, Novaland's handover plans for its projects this year remain unchanged.
In 2020, the group plans to launch around 8,000 products of various types to the market andto achieve a revenue of VND14.88 trillion ($646.96 million), higher than its actual performance in 2019 by 36 per cent. It also plans to generate VND3.65 trillion ($158.7 million) of net profit, an increase of 8 per cent compared to 2019.
It estimates to hand over 10 projects (eight housing and two second-home projects) this year.
These include Aqua City, the largest-scale residential project located on 1,000 hectares in Bien Hoa, Dong Nai province, 15 minutes from Ben Thanh-Suoi Tien metro station and 10 minutes to Long Thanh International Airport.
Novaland is also planning to launch two more new housing projects in districts 2 and 9 – the eastern gate of Ho Chi Minh City, as well as completing on schedule the Grand Manhattan and Soho projects.
In the second-home segment, Novaland continues to implement large-scale projects such as NovaWorld Mekong (Mekong Delta), NovaWorld Phan Thiet, NovaHills Mui Ne Resorts & Villas (Binh Thuan province), and NovaWorld Ho Tram (Ba Ria-Vung Tau).
All of these projects are well connected to Ho Chi Minh City – the economic hub of the country with a market of more than 15 million potential customers.
Novaland’s vision is to become the leading group in real estate and finance, creating destinations to fuel tourism and transport infrastructure development
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In addition to developing its distribution channel, Novaland has been in partnership with Vietnam's leading property contributors to bring its latest products to the market. These agencies were carefully selected with high levels of professionalism and long experiences in sales with high-profile consultants on real estate, finance, and investment.
The group estimated that by the end of June 2020, more than 26 per cent (2,300) of the planned 8,000 products will be booked by buyers – a remarkable percentage during the pandemic time.
NovaWorld Phan Thiet – creating differences
Built under the theme of a tourism and healthcare city, NovaWorld Phan Thiet is one of the most hunted projects by tourists.
NovaWorld Phan Thiet has more than 200 public facilities, along with 20 resorts and hotels. In addition, the project has reserved 200 hectares for sports facilities, and a food and beverage and entertainment centre with the Arena Theatre of 7,000 seats and discount outlets which will appear for the first time in Vietnam.
In this large-scale project, Novaland will hold annual international sports competitions such as golf, professional volleyball, and Olympic sports, and will co-operate with many partners to develop healthcare services, a hospital system, and facilities to provide international-standard training to community healthcare professionals.
So far, Novaland has signed agreements with the Cuban Health Ministry to set up a community health care treatment facility at NovaWorld Phan Thiet with the aim of developing Phan Thiet into a smart holiday city with sustainable development.
“NovaWorld Phan Thiet will be an advanced model of Novaland which will create favoured destinations for visitors. This model will set itself apart from other holiday projects and create a safe, health-oriented, and attractive destination to form a community where the value of the project will increase with time,” said a leader from Novaland.
