Ending August 16, the NVL shares of Novaland – CTCP Investment Corporation No Va rose to the ceiling price of 7%, reaching 11,950 VND/share. The trading volume was over 35 million units. This is the first time since November 2023 that NVL’s market price has surged.
However, NVL shares are still trading near their historical lows. Since the beginning of the year, the share price has decreased by nearly 30%.
The surge in Novaland’s shares during the August 16 session was partly due to the “euphoria” of the general market, with the VN-Index surging nearly 30 points, surpassing the 1,250-point threshold. Real estate stocks also rode the market wave.
In addition, some new developments have emerged regarding Novaland’s key Aqua City project. Specifically, in recent times, the People’s Committee of Bien Hoa City, along with the Department of Construction, has been reviewing and finalizing the dossier for adjusting the master plan of the city for sub-area C4, in accordance with the opinions of the Ministry of Construction. At the same time, they have directed the wards and communes to re-examine the process of gathering community opinions as requested by the Ministry of Construction.
Recently, at the Socio-Economic Conference for July and the first seven months of 2024, Mr. Nguyen Hong Linh, Member of the Party Central Committee and Secretary of the Provincial Party Committee, highly appreciated the efforts of the concerned units in implementing the adjustment of the master plan of Bien Hoa city for sub-area C4.
Also, at this conference, Mr. Vo Tan Duc, Acting Chairman of the Provincial People’s Committee, stated that to promptly address the difficulties and obstacles facing projects in sub-area C4, the relevant units must finalize and submit to the Provincial People’s Committee the dossier for adjusting the master plan of Bien Hoa city for sub-area C4 within August 2024.
This adjustment will resolve challenges for many real estate projects, including Novaland’s Aqua City. This project has faced obstacles over the past two years. When Novaland acquired it through a transfer, the project had already been approved in principle, with detailed planning approved at a ratio of 1/500, and land handed over and leased.
Regarding project progress, Mr. Duong Van Bac, Chief Financial Officer (CFO), shared that Aqua City comprises nine sub-areas, six of which are awaiting new planning by Bien Hoa City. It is expected that in August, there will be a detailed plan at a scale of 1/5,000 for sub-area C4, and in October, adjustments will be made to the 1/500 plan before proceeding with other legal procedures. The remaining sub-areas, namely Aqua Riverside (81ha), Aqua Waterfront (91ha), and Aqua City (112ha), have completed 65% of legal procedures and are resuming construction.
In Q2 2024, Novaland recorded a net profit of 941 billion VND, a significant increase compared to the loss of 634 billion VND in the previous year. This was the company’s highest profit in the last nine quarters, despite revenue of just over 1,549 billion VND.
The primary reason for Novaland’s substantial profit in the last quarter was its financial revenue. Specifically, the company’s financial revenue reached 3,951 billion VND, more than five times higher than the same period last year. This increase was driven by profits from cooperation investment contracts, amounting to 2,885 billion VND.
