TTC LAND EXPECTS TO INCREASE ELEVEN-FOLD ON PROFIT IN THE NEXT THREE YEARS

Ms. Diep Thi Phuong Thao, Deputy General Director of Thanh Thanh Cong Group stated the development strategy and vision of the subsidiary - Saigon Thuong Tin Real Estate Company - TTC Land (HoSE: SCR). Accordingly, profit before tax will achieve VND 2,223 billion by 2025, 11 times higher than this year's plan.

By 2025, TTC Land expects to reach VND 7.075 billion in revenue, VND 2.223 billion in pre-tax profit, 3 times and 11 times higher than this year’s plan, respectively. Land bank is expected to reach 601 hectares, double the current amount. Along with that, total assets set a target of VND 14.061 billion by 2025. Compound Annual Growth Rate (CAGR) for the period 2021 – 2025 is expected to reach 9%.

According to TTC Land, in the first half of this year, pre-tax profit is estimated at VND 166 billion, mainly from Carillon 7 Project in Tan Phu District (HCMC). This resulted 55% compared to the annual planner. In the last six months, TTC Land plans to open for sale the Selavia Project (Phu Quoc) and Charmington Tamashi (Da Nang).

TTC Land land bank is currently up to 250 hectares in several places such as HCMC, Da Nang, Phu Quoc, Da Lat, suitable for 3 types of developments: residential, commercial and tourism real estate, particularly Iris, Charmington Dragonic, Charmington Tan Son Nhat,… in HCMC; Charmington Tamashi in Da Nang, and Thung lung tinh yeu in Da Lat.

In addition to existing land banks, the company plans to expand to provinces which have a high urbanization rate such as Long An, Mekong Delta, Dong Nai, Lam Dong.

Looking back at 2021, TTC Lad achieved VND 1.692 billion in the net revenue and more than VND 194,2 billion after-tax profit due to the handover and recognition of projects which have good profit margins such as Carillon 7.

TTC Land’s total assets at the end of 2021 are over VND 9.797 billion, down 14% compared to the beginning of the year. Long- and Short-term Receivables account for majority of assets with over VND 4.291 billion.

Besides, the inventory value is over VND 2.976 billion, mainly in 11 projects such as Jamona City (VND 1.160 billion), Charmington Dragonic (VND 575 billion), Charmingtion Tamashi Da Nang (VND 490 billion), Jamona Cau Tre (VND 196 billion), Jamona Home Rersort (VND 110 billion) … Particularly, the inventory value of Carillon 7 decreased sharply from VND 544 billion to VND 6 billion because TTC Land handed over to customers.

Estimated to the end of 2021, TTC Land’s liabilities recorded over VND 4.764 billion. In which, total loan outstanding balance accounted for more than VND 1.566 billion. During the period, TTC Land paid the principle over VND 2.100 billion.

The positive point is that the company has nearly VND 1.356 billon prepaid buyers, an increase of 54% compared to the beginning of the period. This amount will be accounted to company’s revenue when properties is handed over to the customers and is eligible for recognition.

In this year, TTC Land expects that the net revenue will achieve VND 2.135 billion, pre-tax profit reach VND 300 billion. The entire revenue mainly come from the handover of remaining 189 apartments of Carillon7 and new projects in 2022.