Many real estate companies record big profits and exceed their profit targets

Until now, the majority of publicly listed real estate companies have released financial results for the fourth quarter of 2021 as well as the full year of 2021.

Many companies, like Thuduc House and Hoang Quan Real Estate, incurred historic losses as a result of the Covid-19 outbreak. Vingroup, the "big player", also recorded a loss after tax of VND 7,500 billion for the first time, following a year of heavy spending on electric vehicles and funding to fight the pandemic.

However, there are still many companies in the market that have successfully turned risk into profit. The business results were excellent, with the greatest profit ever recorded.

In particular, Century Land Joint Stock Company's (Cenland, stock code: CRE) net revenue and profit after tax in 2021 totaled VND 5,615 billion and VND 451 billion, respectively. According to the established strategy, this company has reached 140 % and 127 % of the year's target, respectively. This is also the company's highest profit since its establishment.

Despite the epidemic's challenges, many real estate companies record significant profits in 2021.

Similarly, thanks to the record of achievements in the fourth quarter of 2021, when revenue reached more than VND 324 billion, 5.8 times higher than the same period; gross profit from sales and service provision reached VND 298.5 billion, up 6 times compared to the fourth quarter of last year, Danh Khoi Group Joint Stock Company (code: NRC) earned net sales of VND 444 billion for the whole year of 2021, which is twice as much as it was in 2020. Profit after tax is VND 194.8 billion, which is more than three times higher than the result in 2020.

Ba Ria - Vung Tau Housing Development Joint Stock Company would likewise have a successful year in 2021 (Hodeco, stock code: HDC). The Light City, West 3/2, and Eco-Town Phu My projects contributed to the company's profit after tax of VND 311 billion representing 121 % of the year's target. Meanwhile, Hodeco is also actively acquiring land in Vung Tau and Binh Thuan.

Sharing the same context, Ha Do Group Joint Stock Company (stock code: HDG) recently reported a hit of profit up to VND 1,333 billion, or 106 % of the year's target, as a result of the handover of apartments at Hado Centrosa Garden, Hado Charm Villa projects, and the completion of three hydropower projects.

In addition, there are a number of other names that exceed the annual profit target, including CEO Group (above 2.5 %), TTC Land (5 %), Nam Long (8%), BV Land (2 %), and Becamex UDJ (6 %), Van Phat Hung (9%), etc. 

Infrastructure investment remains a "bump" for the market in general, and for the real estate sector in particular.

With the results of 2021, several companies have set a goal of expanding their land fund and growing profitably in 2022.

TTC Land, for example, plans to increase net revenue and pre-tax profit by at least 10% compared to 2021 (equal to a minimum net revenue of VND 1,851 billion and a minimum profit before tax of VND 266 billion).

This year, the company said it will continue to hand over the remaining 189 apartments of the Carillon 7 project while also recording new ones. In addition, the company will implement and complete legal formalities for Panomax River Villa, Charmington Tan Son Nhat, Charmington Dragonic, and others, as well as look for partners to transfer projects that do not match with the strategic orientation.

Regarding the company's plan to expand the land fund, TTC Land will target locations such as Dong Nai and Long An, etc.

Likewise, CenLand’s Board of Management also stated that the company's revenue goal for 2022 is VND 10,000 billion, or even higher, at VND 12,000 - 13,000 billion. The General Meeting of Shareholders approved a plan to expand investment capital from VND 2,016 billion to more than VND 4,637 billion through the issuance of more than 262 million shares in order to implement the new strategy.

Mr. Pham Lam, Vice Chairman of the Vietnam Real Estate Brokers Association, commented on the market in the next coming years that in 2022, the real estate market is expected to be positive and engaging, with some aspects encouraging stronger growth than in 2020 and 2021. Those include changes in mechanisms and legal procedures, a national housing program, low-interest rates, and so on.

Dr. Can Van Luc, a member of the National Monetary and Financial Policy Advisory Council, expressed optimism about the market's prospects, stating that the housing construction strategy for 2021-2023 is being finished gradually. Infrastructure investment, in particular, is regarded as one of three major breakthroughs, with public investment being strongly encouraged, and this is a crucial component in fully supporting the market in the coming time.

Furthermore, the Government's and Ministries' aggressive involvement in eliminating obstacles to real estate mechanisms and policies is a powerful driving force for the market's overall expansion and especially for real estate businesses.

Source: Vietnam Investment Review