VNDIRECT’s Analysis Report on Vinhomes’ Performance and Future Prospects
According to a recent analysis report by VNDIRECT Securities Corporation on Vinhomes Joint Stock Company (VHM), the total value of unrecorded sales as of the end of June 2024 increased by 33.2% year-on-year to VND 118,700 billion, comprising 58% bulk sales and 42% retail sales.
VNDIRECT’s Analysis of Vinhomes’ Performance
Unrecorded project sales have been on an upward trend in recent quarters, while recorded revenue has slowed down due to the new launches not yet being completed for handover.
This indicates potential growth in the total adjusted revenue for the real estate sales segment in the second half of 2024, based on the progress of ongoing projects. The management expects approximately VND 65,000 billion from the current unrecorded sales to be recognized in the latter half of the year.
VNDIRECT’s Projection for Vinhomes’ Revenue
Vinhomes is currently negotiating two bulk sale deals worth a total of VND 40,000 billion, expected to be finalized in the second half of 2024. The company has not disclosed details about the projects involved in these transactions.
VNDIRECT assesses that if Vinhomes successfully concludes these deals, it will establish a solid foundation for revenue growth in the real estate sector in 2025.
The strategy of bulk sales has proven effective in generating quick and direct cash flow from partners, especially advantageous during periods of weak market sentiment and retail demand. This explains the significant proportion of bulk sales in Vinhomes’ real estate sales.
Vinhomes’ Bulk Sales Strategy
Bulk sales also represent strategic collaborations with reputable foreign investors (such as Mitsubishi and CapitaLand), leveraging the prestige of these companies to attract customers within a broader range.
Vinhomes’ Strategic Partnerships
Vinhomes recently held an event to introduce the Vinhomes Global Gate project (Vinhomes Co Loa) to real estate brokers on September 9, and Vinhomes Wonder Park (Dan Phuong) is expected to be launched soon. These projects are located in the northeast and northwest of Hanoi, respectively.
Vinhomes Global Gate (Vinhomes Cổ Loa)
With the strong recovery of the Hanoi real estate market and the strategic locations of these projects, VNDIRECT anticipates a positive response from the market, attracting both homebuyers and investors.
In addition to its real estate business, Vinhomes’ construction services segment is increasingly contributing to its total revenue.
In the first half of 2024, construction revenue surged by 405% year-on-year to VND 9,967 billion, accounting for 27% of total revenue. This remarkable performance is attributed to Vincons, a wholly-owned subsidiary of Vinhomes, serving as the main contractor for Vinhomes’ large-scale projects.
Engaging an internal contractor offers long-term benefits such as better control over project quality, execution timeline, and flexibility in managing construction material and labor costs.
Regarding industrial real estate, Vinhomes’ industrial park project in Vung Ang Economic Zone, Ha Tinh province, was approved for investment in July 2024. The project spans an area of 964.84 hectares, with a total investment value of VND 13,200 billion (including VND 1,991.4 billion of owner’s equity). The project has a duration of 70 years, starting from the date of approval of the investment policy and the investor.
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The Ultimate Headline:
“Shareholders Await the Biggest Deal in Vietnam’s Stock Market History: When Will Vinhomes Buy Back its Shares?”
“Shares of Vinhomes, trading as VHM on the stock exchange, have surged by approximately 27% since the company first announced its plan to purchase treasury stocks in early August.”
“Vinhomes Cổ Loa: A Profitable Venture for Vinhomes”
The SSI Securities Corporation has released an update on the business operations of Vinhomes Joint Stock Company. In this report, SSI highlights the potential selling price range for the Vinhomes Co Loa project, estimated to be between $10,000 and $15,000 per square meter.
