Services
Revenue and profit surge
An Gia Investment and Real Estate Development Joint Stock Company (Stock Code: AGG) has just announced its first-quarter 2024 financial statements, with revenue and profit multiples of the same period last year. The profit was also much higher than in 2023, when the company exceeded 75% of its plan. This indicates a “bright spot” in the business picture of the enterprise in the context of the real estate market is on the recovery path.
 |
The Standard, a gated community in Tan Uyen, Binh Duong
|
According to the report, net revenue from sales and services provision reached nearly VND 1,313 billion, seven times higher than the same period last year. The company maintained a tight rein on cost of goods sold, leading to a substantial improvement in the gross profit margin, which stood at 34%, a notable increase compared to the 23% recorded in the previous year.
The company posted a consolidated after-tax profit of over VND 214 billion, 17 times higher than the same period last year. After-tax profit attributable to owners of the parent amounted to more than VND 200 billion, 43 times higher year-on-year.
In the first quarter, the real estate market witnessed several positive signals, with buyers’ confidence returning and lower interest rates spurring market activity. Building on the successful development of projects in the previous year, An Gia continued to hand over products at the Westgate complex (Binh Chanh, Ho Chi Minh City) and The Standard, a gated community in Binh Duong province. These two projects accounted for the majority of An Gia’s revenue in 2023, helping the company surpass its annual plan by 30%; after-tax profit attributable to owners of the parent reached VND 175 billion, exceeding the plan by 75%.
With the market’s positive signals and the efficient and timely project handover, An Gia continued to achieve favorable results in the first quarter of 2024. The company’s management has set a target of VND 250 billion in after-tax profit attributable to owners of the parent for this year, representing a more than 43% increase over the previous year.
Maintaining a safe financial position and zero bond debt
Alongside the impressive revenue and profit growth, An Gia also maintained a stable financial position and a healthy capital structure. As of March 31, the company’s total assets amounted to nearly VND 8,482 billion. Inventories decreased by 39% from the beginning of the year to VND 1,229 billion, mainly comprising projects under development and significantly reduced as the company handed over products in the Westgate complex (Binh Chanh) to customers.
 |
Westgate Complex in Binh Chanh, Ho Chi Minh City
|
Financial borrowings at the end of the period stood at VND 1,489 billion, unchanged from the beginning of the year. The debt-to-equity ratio was maintained at a safe level of 0.48. The company had approximately VND 315 billion in outstanding bond debt, of which VND 17.7 billion was repaid in early April, and the remainder is expected to be repaid by May this year. With the cash inflow from the handover of the Westgate (Binh Chanh, HCMC) and The Standard (Binh Duong) projects, the company is confident in its ability to fully repay the bond debt and become one of the first companies on the stock exchange to be debt-free.
Short-term customer advances as of March 31 amounted to over VND 735 billion, a decrease from the previous year-end as the project progressed towards handover. According to accounting standards, this is a deposit or advance payment from customers for the purchase of products, which will be recognized as revenue when the project is handed over. Therefore, in the future, An Gia has the potential to recognize this amount as revenue if the handover proceeds as planned and on schedule.
 |
The Gio Riverside project in Binh Duong
|
Moreover, the company plans to launch the The Gio Riverside apartment project (Binh Duong) this year. With a total investment of nearly VND 6,000 billion, the project will supply approximately 3,000 apartments to the market. The project has received approval for its master plan, investment policy, and construction permit from the competent state agency and is in the process of finalizing other legal procedures to commence construction in the near future.
Analysts attribute the company’s impressive performance in the first quarter to its strategic focus on developing affordable housing over the years. As the market recovers, this segment is expected to be the first to accelerate, catering to genuine housing needs and matching the income levels of the majority of the population. An Gia is well-positioned to capitalize on the industry’s rebound and has the potential to emerge as a leading player in the new real estate cycle.
