At this time, real estate businesses on the stock exchange have been less difficult than last year, but the business situation is still not really positive.
Several businesses have positive sales figures, but profits have not yet improved. After “soaring” in line with investors’ expectations, the stock price has now also stagnated, and has even fallen significantly in line with the general decline of the market.
As a real estate business with “hot” shares on the stock exchange, attracting tens of thousands of investors to buy and sell, Joint Stock Company for Investment in Construction and Development (DIC Corp, code: DIG) has just announced its financial report for the first quarter of 2024, recording a record loss of VND121.24 billion, while revenue reached less than VND500 million, down 99.8% compared to the same period.
DIC Corp explained that the decline in revenue in the first quarter of the year was due to returned sales and a reduction in the price of goods sold of up to VND185.95 billion.
The business results of real estate businesses are still sluggish. (Photo: S. Nhung)
Despite poor business performance in the first quarter of the year, at the recent general meeting of shareholders, DIC Corp still approved a revenue plan for 2024 of VND2,300 billion, an increase of 72% compared to the same period; expected pre-tax profit of VND1,010 billion, an increase of 508.9% compared to the implementation in 2023. Planned investment capital of VND7,211.8 billion, an increase of 541% compared to the same period.
After increasing strongly after Tet, DIG shares have reversed and decreased sharply in recent weeks, and are now only around VND28,000/share, down more than 20% compared to the beginning of April.
As a business that attracted the attention of the entire market in 2022-2023 due to having many projects stuck and debts of tens of thousands of billions of dong in bonds, No Va Real Estate Investment Joint Stock Company (Novaland – code: NVL) has just announced quite positive consolidated revenue in the first quarter of 2024, reaching VND1,338 billion, of which net revenue from sales reached nearly VND503 billion, an increase of 11% compared to the same period last year, recorded from the handover of products at projects such as: NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, Lakeview City…
However, after deducting expenses, this real estate giant lost VND601 billion. The main reason was the exchange rate difference, with the loss accounting for VND452 billion.
And last week, NVL shares increased sharply from VND16,000 to over VND18,000/share. However, recent profit-taking pressure has caused this stock to decrease sharply by 25% and is currently around VND15,000/share, equivalent to the price at the beginning of the year.
Meanwhile, Phat Dat Real Estate Development Joint Stock Company (Phat Dat – code: PDR) announced that its total revenue in the first quarter of 2024 reached only VND162 billion, a decrease of 16% compared to the same period. Thanks to reducing financial expenses and recording extraordinary other income, Phat Dat reported a net profit of nearly VND53 billion in the first quarter of 2024, 2.2 times higher than the same period last year.
Notably, on the balance sheet, the amount of cash decreased by 93% to nearly VND35 billion, while short-term accounts receivable increased by 17%, to VND4,800 billion. While accounts payable increased by 3% to nearly VND11,800 billion. Loans increased by 14% to over VND3,500 billion. Of which, there is a USD30 million unsecured loan (equivalent to more than VND732 billion) from ACA Vietnam Real Estate III LP, with a term of 3 years, and an interest rate of 8%).
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PDR’s share price has also decreased by nearly 30% in just 1 month, and is currently around VND26,500/share. This price has returned to the beginning of 2024. The bottom of PDR shares in March last year was below VND10,000/share, while the peak was at the end of 2021 at VND73,000/share.
Assessed as the most positive and healthy in the industry, in the first quarter of 2024, Nam Long Investment Joint Stock Company (Nam Long NLG) reported sales revenue five times higher than the same period, reaching over VND1,100 billion from the sale of houses in key projects. This shows that the real estate market has positive signals. However, only nearly VND205 billion in consolidated net revenue was recorded, and a net loss of over VND65 billion. The Company has not yet provided an explanation for this loss.
At the general meeting of shareholders held on April 20, Nam Long’s shareholders approved the plan for 2024 net revenue to reach VND6,657 billion, net profit to reach VND506 billion, an increase of 5% compared to the results of 2023. The positive point of Nam Long is that at the end of the first quarter of 2024, the company had “savings” of over VND4,400 billion from the value of prepayments from customers and unrealized revenue.
On the stock exchange, NLG’s share price has also decreased significantly in the past 2 weeks and is currently around VND38,000/share, much lower than the peak in early April of VND45,000/share.
