Sunshine City investor highest profit in 4 years

Sunshine Homes - investor of Sunshine City, Sunshine Capital, Sunshine Garden - profit after tax of 547 billion VND in the third quarter, the highest since 2020.

According to the newly released consolidated financial report, Sunshine Homes Development Joint Stock Company (SSH) reported revenue of more than VND 1,075 billion, an increase of 5.5 times compared to the third quarter of 2022. This is also the sixth consecutive quarter recording growth in this indicator. The company's gross profit was nearly VND 720 billion.

After deducting expenses, SSH earned more than VND 537 billion in profit after tax, an increase of more than 7 times over the same period. This is the quarter with the highest profit since the company announced information in 2020. The company has had 4 consecutive quarters of profit improvement.

The management said that gross profit increased sharply due to real estate transfer activities but did not specify which projects. Comparing inventory figures and short-term prepayments from buyers, it can be seen that the projects Sunshine City Nam Thang Long, Sunshine Capital Tay Thang Long and Sunshine Garden ( Hanoi ) contributed the most to revenue.

In the first 9 months, the company had VND2,588 billion in revenue and over VND1,261 billion in profit after tax, up 6.2 times and 5.6 times respectively compared to the same period last year. SSH completed 80% of its revenue target but exceeded the annual profit plan by 2.8 times.

In addition to high profits, Sunshine Homes' financial health has also improved. Debt payable by the end of September decreased by nearly half to more than VND 7,450 billion. Of which, financial debt decreased by nearly 59% to more than VND 3,400 billion. SSH mainly cut long-term debt. Thanks to that, financial expenses in the third quarter decreased by 56% when the burden of loan interest and bond interest was reduced.

With the above business results, Sunshine Homes has become a "strange phenomenon" in the real estate industry when the general situation of many businesses is still facing many difficulties. This year's huge profits are also contrary to what the company recorded last year. In 2022, SSH did not complete its business plan. At that time, the board of directors explained that the reason was due to the crisis in the bond market and financial capital, which severely affected real estate, with liquidity almost frozen. SSH had difficulty pushing the fund of goods that had been built and completed for handover.

Last year, the company said it was "proactively slowing down construction investment" at the Sunshine Capital Tay Thang Long project due to the general market situation. But this year, the project started to record revenue and contributed a high percentage to SSH's business results. At the annual meeting, the board of directors said that flexible sales policies were the main reason for accelerating sales progress and handing over apartments.

According to the plan, Sunshine Homes will continue to focus on the mid-range and high-end segments, with priority given to Hanoi and Ho Chi Minh City. In addition to pushing the completed product portfolio to the market, the company is also preparing resources and looking for potential projects to conduct M&A to prepare land funds for the following years.

Siddhartha

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