Services
Surpassing 2023 Revenue and Profit Plan
On May 14th, An Gia Real Estate Investment and Development Joint Stock Company (Stock Code: AGG) will proceed with its annual General Meeting of Shareholders for 2024.
Reflecting on the past year, An Gia has accomplished encouraging and solid business results within a context where the general market has experienced many fluctuations. Riding on the wings of an “attentive and responsive” management strategy, coupled with the credo of “flexibility and effectiveness,” the company has garnered close to 3,900 billion VND in revenue, exceeding the year’s plan by 30%. This income is mainly attributed to the handover of An Gia’s Westgate complex, a project encompassing over 2,000 units in Binh Chanh (Ho Chi Minh City).
Westgate complex in Binh Chanh
|
The post-tax profit of the company’s shareholders reached 175 billion VND, outperforming the approved plan by 75% at the 2023 Annual General Meeting of Shareholders.
An Gia did not issue new bonds in 2023 and maintained its debt ratio at a low and secure level. As of December 31, 2023, its debt to equity ratio stood at only 0.51 times, while its bond debt to equity ratio was minimized to an exceptionally low 0.11 times. The company has implemented a strategy of diversifying project development funding sources, enabling it to secure capital proactively and avoid excessive reliance on cash flow.
The company has also consistently deployed and completed projects, generating a stable cash flow. Funds raised from bonds have been utilized for their intended purposes, ensuring that all financial obligations to bondholders are met. As of the end of 2023, An Gia’s outstanding bond debt is approximately 315 billion VND.
The company revealed that it has secured funds to repay all bonds on schedule through the sale of remaining units at its Westgate (Binh Chanh, Ho Chi Minh City) and The Standard (Binh Duong) developments. It is confident in eliminating its bond debt in the near future, becoming one of the first enterprises on the stock exchange to eradicate such liabilities.
2024 Profit Plan Projected to Increase by 43%
Over the years, An Gia has remained steadfast in its focus on the mid-range real estate segment, as these products offer stability and strong absorption capacity despite market fluctuations. Given the outstanding performance witnessed in previous years, An Gia will maintain this goal throughout the current and subsequent development phases.
 Perspective of The Gió Riverside project
|
Continuing its commitment to this segment, An Gia plans to launch The Gió Riverside apartment project (Binh Duong) this year. The development boasts a total investment value of nearly 6,000 billion VND and is expected to introduce approximately 3,000 apartments to the market. The project has already received planning approval from competent state authorities and will proceed with completing other legal requirements in preparation for construction commencement within this year.
Furthermore, An Gia will continue to generate revenue from the sale of remaining units at its Westgate (Binh Chanh, Ho Chi Minh City) and The Standard (Binh Duong) projects, contributing to increased profitability.
Amidst the gradual recovery of the real estate market, with positive indicators in various market segments, the company is optimistic about the success of its project implementation plans. This optimism is fueled by the company’s strategic focus on segments that cater to genuine residential needs, aligning with the purchasing power of the majority.
Consequently, the Board of Directors will present a business plan to shareholders for 2024, projecting revenue of 1,600 billion VND and post-tax profit for the company’s shareholders of 250 billion VND. This profit plan represents an increase of over 43% compared to the actual results of 2023, largely driven by the handover of residential properties.
In addition to launching The Gió Riverside project, the company is preparing the legal documentation for The Lá Village and BC 3.2 projects in Binh Chanh (Ho Chi Minh City), spanning 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 consistently demonstrated strong absorption rates regardless of market conditions. An Gia’s philosophy is not to chase market trends or acquire land or projects at any cost. The company conducts thorough due diligence on land plots to ensure that when products are introduced to the market, their prices align with the financial capabilities of the majority of buyers,” stated an An Gia representative.
Alongside its land expansion plans, An Gia aims to increase its capital this year, from 1,251 billion VND to 1,938 billion VND, through various share issuance mechanisms. Specifically, the company intends to issue preferential shares to employees (ESOP) at a ratio of 4.9% of the outstanding shares. The issue price will be no less than 10,000 VND per share, and the shares will be subject to a one-year transfer restriction. Eligible recipients include members of the Board of Directors, the Executive Board, and outstanding employees who have made significant contributions to the company’s growth.
An Gia has also planned a share issue to distribute dividends to shareholders at a ratio of 25% of the currently outstanding shares. The issuance is scheduled for this year, subject to approval by the State Securities Commission of Vietnam.
As part of its capital increase plan, An Gia intends to issue shares privately to professional securities investors, representing approximately 25% of the outstanding shares. The issue price is projected to be no less than 12,000 VND per share, and the shares will be subject to a one-year transfer restriction.
During this meeting, An Gia shareholders will also elect the Board of Directors for the new 2024-2029 term, comprising three members, including at least one independent member.
