TTC Land fulfills the plan of 2021 within the first nine months

In the context of many real estate companies anticipating disappointing business results due to the severe impact of the Covid-19 pandemic, Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land, HOSE: SCR) has consistently delivered positive financial results in the third quarter of the year. This achievement reflects TTC Land's strategic vision, effective business capability, adaptability, and responsive reactions to market fluctuations.

Profit for the first nine months surpasses 101 % of the year's plan

According to TTC Land's latest financial report of Quarter 3, consolidated net revenue reaches VND 375 billion, increasing more than 3 times over the same period, contributing mainly to the handover and continuous record of 100 apartments in the Carillon 7 project. This lifts the gross profit again for Quarter 3 to more than VND 71 billion, representing more than a double increase over the same period in 2020. Directing capital to focus on project development even reduces profits from financial activities in the short term but boosts the company's long-term sustainable profit. Furthermore, the company has continued to control operating expenses; especially, the ratio between administrative expenses and net revenue in Quarter 3 is only 5.1 %, a significant decrease from 16.1 % in the same period last year. As a result, the consolidated pre-tax profit in Quarter 3 of 2021 reaches VND 12.8 billion.

However, overall, cumulative consolidated net revenue in the first nine months of 2021 surpasses VND 1,574 billion, increasing 4.5 times over the same period and about 5% more than the whole year plan of VND 1,502 billion. Consolidated pre-tax profit surpasses VND 233 billion, almost tripling over the same period, and exceeds the 101 %/ year target of VND 230 billion. TTC Land is confident that it will meet and exceed the revenue and profit plan approved by the General Meeting of Shareholders in Quarter 4 of 2021, based on positive business results in the first 9 months of the year, as well as the continuous record and handover of the remaining 189 apartments of the Carillon 7 project and the liquidation of assets that are not suitable for the company's development orientation.

As of October 28th, 2021, SCR's share price was VND 14,450 per share and market capitalization increased by VND 5,294 billion, representing a +57 % increase over the beginning of the year thanks to outstanding business performance in 2021. (In the same period VN-Index achieved a growth rate of 26 %). The significant growth rate of SCR share partially reflects investors' optimistic expectations for TTC Land's prospective development potential.

Also, as of September 30th, 2021, total assets are VND 10,464 billion. The value of the company's equity has increased to VND 5,031 billion. The total loan balance at the end of Quarter 3 was VND 2,136 billion, down VND 650 billion from the beginning of the year, with debt/assets and debt/equity ratios of 0.20 and 0.42 times, respectively. This will give the company an advantage in accessing new capital sources in the future, particularly from banks and financial institutions.

Investing in land funds to secure sustainable development

TTC Land has also accelerated M&A and land fund development in the first nine months of this year by strengthening cooperation with external partners who own many huge land funds, convenient locations, mainly in Long An (130 hectares), and Dong Nai (160 hectares), with various development types such as Complex, Residential, Commercial, and Serviced Area, ensuring a complete ecosystem in terms of property services.

Thus, in Quarter 3 of 2021 and accumulated figures for the first nine months of the year, SCR continues to show its flexibility in business tactics as well as the right strategy and vision as illustrated by its business performance with great growth momentum when overcoming the common challenges of the entire economy as well as the real estate industry against the impact of the Covid-19 pandemic. This remains a premise for SCR to fulfill and get over the business plan for the entire year of 2021, as well as to enhance the company's development strategy over the next five years.