Financial reports for the second quarter and the first half of 2024 revealed a decline in profits for over 30 residential real estate businesses. Saigon Real Estate Joint Stock Company (Saigonres, code SGR) experienced the most significant drop, with a 93% decrease in profit, leaving them with just over 2 billion VND in profits for the first six months. In the first quarter, SGR had reported a net loss of 14 billion VND.
Notably, this decline in profit occurred despite a nearly 2.7-fold increase in revenue compared to the same period last year, totaling nearly 78 billion VND. The decrease in profit was due to the additional revenue being insufficient to offset the decline in financial revenue.
Meanwhile, Investment and Construction Development Joint Stock Company (DIC Corp, code DIG) witnessed a 90% decline in profits for the first half of the year, leaving them with just over 9 billion VND. This was mainly due to a loss of 117 billion VND in the first quarter.
DIG’s Q2 2024 net profit increased significantly but had to “bear” the Q1 loss
In the second quarter alone, DIG’s revenue reached over 821 billion VND, a fivefold increase compared to the same period last year. Real estate business revenue recorded 259 billion VND, a 7.7-fold increase. This growth came from the transfer of apartments in the Cap Saint Jacques (CSJ) project and the transfer of unfinished houses in the Dai Phuoc and Vi Thanh projects. As a result, net profit for the second quarter was 12 times higher than the previous year, at over 126 billion VND, offsetting the loss in the first quarter.
Similarly, Phat Dat Real Estate Development Joint Stock Company (code PDR) recorded a threefold increase in revenue in Q2/2024 compared to the same period last year, but their after-tax profit decreased by 82%, to nearly 50 billion VND.
This was mainly due to a 62% decrease in financial revenue to nearly 203 billion VND as a result of losing control of a subsidiary, along with a significant reduction in profit from the transfer of shares of an associated company.
The disappointing results in the second quarter caused PDR’s cumulative net profit for the first six months to decrease by 66% compared to the previous year, to over 102 billion VND.
Nam Long Investment Joint Stock Company (code: NLG) recorded revenue of nearly 457 billion VND in the first six months, a 62% decrease compared to the previous year. Despite a 3.2-fold increase in financial revenue and cost-cutting measures, Nam Long’s net profit still decreased by 63%, to nearly 131 billion VND.
Notably, some businesses even reported losses. The heaviest loss in the real estate sector was reported by LDG Investment Joint Stock Company (code: LDG) as the company had negative revenue.
In the first six months, LDG’s returned real estate value reached 316 billion VND, while sales revenue was approximately 156 billion VND, resulting in a negative revenue of over 149 billion VND for the first half of the year. Consequently, LDG incurred a net loss of over 296 billion VND, pushing their cumulative loss to over 175 billion VND as of the end of Q2/2024.
After the arrest of CEO Nguyen Thi Nhu Loan, Quoc Cuong Gia Lai (code: QCG) faced challenges and reported the heaviest loss since 2012.
In the second quarter, their revenue decreased by 41%, to just over 26 billion VND, due to the general difficulties in the real estate market and the fact that the rainy season had not yet started, resulting in low electricity output. On the other hand, depreciation and interest expenses are not dependent on output, leading to higher costs than revenue. As a result, they incurred a net loss of over 16 billion VND in Q2/2024, causing a net loss of over 15 billion VND for the first six months.
Astonishingly high price for old and dilapidated apartment buildings reaching nearly 200 million VND/m2, rivaling the most luxurious condominiums in Hanoi
Old collective apartments with prices starting from 100 million VND/m2 are usually the first-floor units that can be used for commercial purposes, while the upper-floor units are priced at 60-80 million VND/m2 for residential purposes.
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