Exceeding 2023 Revenue and Profit Targets
May 14, 2024, An Gia Joint Stock Investment and Development Real Estate Company (Stock Code: AGG) will hold its 2024 Annual General Meeting of Shareholders.
Reflecting on the past year, An Gia has achieved positive business results in a challenging market environment. Thanks to its “prudent and responsive” management strategy and “flexible, effective” action plan, the company generated nearly VND 3,900 billion in revenue, surpassing the annual target by 30%. The revenue was primarily driven by An Gia’s handover of the Westgate complex, comprising over 2,000 units in Binh Chanh, Ho Chi Minh City.
Westgate Complex in Binh Chanh
The company’s after-tax profit attributable to the parent company reached VND 175 billion, exceeding 75% of the target approved at the 2023 Annual General Meeting.
In 2023, An Gia did not issue new bonds and maintained a low debt ratio. As of December 31, 2023, the debt-to-equity ratio was only 0.51 times, and the bond-to-equity ratio was reduced significantly to a very low level of only 0.11 times. The company implemented a strategy to diversify project development funding sources, allowing it to arrange capital proactively and avoid financial dependency or passivity.
The company also implemented and handed over projects regularly, generating a stable cash flow and utilizing bond proceeds for their intended purpose, enabling it to fulfill its financial obligations to bondholders. As of the end of 2023, An Gia’s outstanding bond balance was approximately VND 315 billion.
The company announced that it has secured the necessary funds to repay the entire outstanding balance of these bonds on time by selling the remaining units in the Westgate (Binh Chanh, Ho Chi Minh City) and The Standard (Binh Duong) projects. An Gia is confident that it will soon reduce its outstanding bond balance to zero and become one of the first debt-free companies on the stock market.
43% Profit Growth Target for 2024
Over the years, An Gia has consistently focused on the mid-priced real estate segment due to its sustainability and resilience to market fluctuations. The company’s strong business performance in the past years has reinforced this strategy, and An Gia will continue to pursue it in the current year and beyond.
Perspective of The Gio Riverside Project
Aligned with this segment, An Gia plans to launch The Gio Riverside apartment project (Binh Duong) within this year. The project has a total investment value of approximately VND 6,000 billion and is expected to offer around 3,000 apartments. The project has received planning approval from the relevant government authorities and is in the process of finalizing other legal matters to commence construction this year.
Additionally, An Gia will continue to generate revenue from the sale of remaining units in the Westgate (Binh Chanh, Ho Chi Minh City) and The Standard (Binh Duong) projects, contributing to profit growth.
The company is optimistic that its project development plans will succeed as the real estate market gradually recovers and different market segments show positive signs. Notably, the company’s focus on segments that meet the actual housing needs and affordability of the majority of homebuyers supports this optimism.
Based on this, the Board of Directors presented a business plan for 2024 to the shareholders, targeting revenue of VND 1,600 billion and after-tax profit attributable to the parent company of VND 250 billion. The profit target represents an increase of over 43% compared to 2023 and is expected to be driven by the handover of residential products.
In addition to the planned launch of The Gio Riverside project, the company is working on the legal procedures for two projects: The La Village and BC 3.2 in Binh Chanh (Ho Chi Minh City), which have areas of 27 hectares and 3.2 hectares, respectively.
Mr. Nguyen Thanh Son – General Director of An Gia
“The company remains committed to the affordable real estate segment. This segment has always seen strong absorption rates despite market fluctuations. An Gia’s approach is not to chase the market or acquire land or projects at any cost. The company conducts thorough due diligence on land to ensure that the product price meets the affordability of the majority of buyers when the project is launched,” said an An Gia representative.
In addition to its land expansion plans, An Gia aims to increase its capital this year from VND 1,251 billion to VND 1,938 billion through new share issuances. Accordingly, the company plans to issue preferential shares to employees (ESOP) at a rate of 4.9% of the outstanding shares. The issue price will be no less than VND 10,000 per share, and the shares will be subject to a one-year transfer restriction. The eligible participants are members of the Board of Directors, management, and employees with outstanding performance and contributions to the company’s growth.
An Gia also plans to issue shares as a stock dividend to shareholders at a rate of 25% of the current outstanding shares. The issuance is expected to take place within this year, subject to approval from the State Securities Commission.
The company further intends to issue shares through a private placement to professional securities investors, representing approximately 25% of the outstanding shares. The issue price is expected to be no less than VND 12,000 per share. The shares will be subject to a one-year transfer restriction.
At this shareholders’ meeting, An Gia will also elect a new Board of Directors for the 2024-2029 term. The Board will consist of three members, including at least one independent member.
