TTC Land (SCR) will earn VND 400 billion from transfer of TTC IZ with estimated profit increasing 52%

In the context of industrial zone real estate benefiting from the US-China trade war last year, TTC IZ has brought a significant source of revenue to TTC Land, therefore the company decided to continue to hold 19.05% the remaining shares in this unit in order to create a stable source of profit from investment.

TTC Land’s Board of Directors (SCR) has just passed the resolution on the transfer of 20% shares in Thanh Thanh Cong Industrial Zone JSC (TTC IZ). If being successful, the deal is expected to bring the company VND 410 billion in revenue. Accordingly, business result in 2019 is expected to exceed the profit target (VND 340 billion). TTC Land estimates that EPS is expected to reach VND 957 with profit growth of 52% compared to the 2018 audited figures.

Panomax River Villa - One of the projects developed by TTC Land

It is known for the context of industrial park real estate benefiting from the US-China trade war last year, TTC IZ has brought a significant source of revenue to TTC Land. Therefore, the company decided to continue to hold 19.05% the remaining shares in this unit in order to create a stable source of profit from investment.

2019 is also the year TTC Land executed aggressive restructuring from personnel to divestments in inefficient projects. The company also planned for long-term branding development and called for strategic investors to cooperate with.

It is recorded that after Viet Capital Securities (VCSC, VCI) becomes major shareholder, Thanh Thanh Cong Trading also registers to buy shares in order to increase the total ownership of major shareholders and they will account for 42.3 % (from the current level of 36.4%). In addition, TTC Land has also signed a strategic cooperation with Lotte E&C - Korea to invest in project development, the venture value is estimated at USD 100 million.

Entering 2020, the company determines that civil real estate will still be the key product with 7 projects to be introduced in the market after completing legal procedures. Besides, TTC Land will also deploy more commercial-hotel projects to ensure stable income. Accordingly, expected profit before tax growth is stable in the range of 15-25%.

Recently, the company has just opened 01st sales of lot J in Panomax River Villa project with the revenue of about VND 535 billion. It is known that the total revenue of Panomax River Villa project of more than VND 1,500 billion will be recorded in the period of 2020 - 2021. Currently, TTC Land is developing 12 projects with nearly 6,441 products and approximately 1 million m2 of gross floor area, locating from down town (district 4, 5) to district 7, Binh Chanh, Nha Be, Phu Nhuan, Tan Binh, etc., TTC Land has been also expanding its business to satellite cities such as Dong Nai, Da Nang, Lam Dong.

Source: CafeF