The picture of intertwined profits
The real estate market has recently been supported by many positive factors, creating a springboard for a new cycle. Project legal issues have been resolved, market supply has improved, and liquidity has increased, helping many businesses escape the vortex, recover their business situation, and reap the "sweet fruit".
The most positive business result so far is Vinhomes Joint Stock Company (stock code: VHM) with net revenue reaching nearly VND 15,698 billion, double that of the same period last year. After deducting expenses, the company recorded consolidated profit after tax of VND 2,652 billion, nearly 3 times higher.
The reason for the sharp increase in corporate profits comes from core business activities. Of which, revenue from real estate transfers increased by 76% to nearly VND7,200 billion.
The financial figures also partly support the assessment of Mr. Pham Thieu Hoa - Chairman of Vinhomes Board of Directors - at this year's annual general meeting of shareholders. He said that the real estate market has many bright prospects, although it still faces certain challenges and fluctuations, but is mostly favorable.
Mr. Le Tien Cong - Chief Accountant of the company - also said that the revenue and profit motivation of the enterprise this year mainly comes from 3 main pillars. First is the continued construction, implementation, and handover of projects that were opened for sale in previous years. Second is the enterprise continuing to open for sale all projects under implementation. Third is the growth motivation coming from wholesale of large lots.
Another real estate company in the North with positive business results in the first quarter of the year is Van Phu - Invest Joint Stock Company (stock code: VPI).
In a document, Mr. To Nhu Toan - Chairman of the Board of Directors of Van Phu - Invest - stated that the real estate sector has many positive changes in most aspects, in which the strongest recovery is in the apartment and condominium segment, spread across all three regions from North to South.
However, Mr. Toan also carefully mentioned that the real estate market cycle is usually about 10 years, but with the fluctuations of economic and political factors in recent years, this cycle has changed and does not follow the common rules of the past. Therefore, businesses always maintain the necessary caution before each business and investment decision based on a reasonable analysis of market rules.
In the first quarter of the year, the company recorded a profit after tax of more than VND142 billion, more than double that of the same period last year. The company explained that the sharp increase in profit came from recording revenue from apartment rentals and real estate transfers along with some other service revenue.
Another important part is that the company's interest expense decreased sharply compared to the same period because Van Phu - Invest and its subsidiaries have paid off their due loans. Therefore, profit from financial activities was recorded at VND 122 billion, 2.5 times higher than the same period.
Real estate businesses had mixed profits and losses in the first quarter of the year (Illustration: Trinh Nguyen).
Sharing the same growth trend, Nam Long Investment Joint Stock Company (stock code: NLG) had revenue more than 6 times higher than the same period last year, reaching more than VND 1,291 billion, mostly from project handover revenue. After deducting expenses, profit reached more than VND 108 billion, the highest in the quarter since 2022 and a sharp improvement compared to the loss in the same period last year.
The company said its first quarter business results grew strongly mainly due to continued product deliveries at projects in Ho Chi Minh City, Can Tho , and Dong Nai. In addition, in the first four months of the year, the company also achieved revenue of VND2,576 billion, nearly 2.2 times higher than the same period last year.
However, not all businesses achieved growth in the first quarter of the year - often considered the low point of the year, due to the Tet holiday. Ha Do Group (stock code: HDG) reported that its after-tax profit in the first quarter reached nearly VND207 billion, down 22% compared to the same period last year.
Previously, in 2024, the company's after-tax profit decreased by more than 48% compared to the previous year. Ha Do explained that investment output in 2024 was lower than planned because the legal issues in existing projects still had many consequences from changes in policy mechanisms.
These problems are partly the reason why the company's business results have not improved in the first quarter of this year. The company cited the failure to record real estate revenue along with the provision for the difference in electricity selling price of the Hong Phong 4 Solar Power Project as the reason for the sharp decrease in after-tax profit.
Meanwhile, Novaland Group (stock code: NVL) announced a loss of more than VND476 billion in the first quarter, mainly due to exchange rate differences and other operating losses. However, the loss has improved compared to the negative level of nearly VND601 billion in the same period last year. Revenue was 2.5 times higher than the same period, reaching more than VND1,778 billion, recorded from the handover of many projects.
As of March 31, the group's total assets reached over VND234,807 billion. Inventory recorded VND148,639 billion. Of which, the value of land fund and projects under construction accounted for 95%, the rest was completed real estate, real estate goods, and completed real estate waiting to be handed over to customers.
Debt settlement efforts
In addition to increased revenue and profit, Vinhomes also increased its debt in the last quarter to finance projects. The total outstanding long-term and short-term debt of the enterprise as of March 31 was nearly VND87,950 billion, an increase of 8% compared to the beginning of the year. Most of the debt increased due to the issuance of bonds. Vinhomes' debt-to-equity ratio increased from 37% to 39% at the end of the first quarter.
During the quarter, the company issued bonds advised by Vietnam Technological and Commercial Securities Joint Stock Company, with a fixed interest rate of 12% per year. These bonds are unsecured or secured by land use rights and assets attached to land of a resort real estate project or listed stocks.
In addition to revenue and profit growth, Van Phu - Invest's debt also increased. Specifically, the total outstanding long-term and short-term debt as of March 31 reached nearly VND5,951 billion, up 31% compared to the beginning of the year. Most of the debt increase was due to long-term bank loans (about VND1,434 billion). These loans were provided by many banks such as Vietcombank, MB, SHB, VPBank.
Compared to Vinhomes, Van Phu's debt-to-equity ratio is quite high, increasing from 90% at the beginning of the year to 114% at the end of the first quarter.
Real estate businesses are still struggling with debt (Illustration: Trinh Nguyen).
Some other companies have safe or low debt ratios such as Ha Do and Nam Long. Ha Do's total debt as of March 31 decreased slightly by about 2% compared to the beginning of the year due to a reduction in long-term debt. The company's long-term loans are mainly bank loans, with no outstanding bond debt. The company maintained a debt-to-equity ratio of 63% at the end of the first quarter.
Or as of March 31, Nam Long had VND4,395 billion in cash and cash equivalents. Total financial debt was VND7,101 billion, including 58% long-term debt and not much changed compared to the beginning of the year. The debt/equity ratio was only 49%, at a safe level.
The most notable story is the debt of Novaland Group. As of March 31, total financial debt was VND59,258 billion, of which 54% was short-term debt. Debt decreased by more than VND2,300 billion in the first 3 months of the year, mainly in short-term debt. The debt/equity ratio was 1.2 times.
However, the group said that its debt has decreased by nearly 4% compared to the end of 2024 and by nearly 9% compared to the end of 2022 - the time before restructuring. Regarding domestic bonds, Novaland has reduced the outstanding debt of privately issued bonds by 18% and extended more than VND 4,000 billion of privately issued bonds and bonds issued to the public compared to the end of 2022.
The market has recorded that since the beginning of the year, a number of businesses, including real estate, have been slow to pay bond interest, reflecting a difficult financial situation.
In a recent statement, Novaland stated that the current financial situation, especially when the project's legal settlement has not met expectations, has greatly affected revenue as well as the progress of loan disbursement. From now until the end of 2026, the group will not be able to arrange cash flow to pay off debts.
However, the company's management said it has a detailed plan and roadmap for payment for each group. Novaland plans to pay off most of its loans within the next 3 years, such as extending payment terms, negotiating debt restructuring, and changing interest payment plans.
Most recently, Novaland asked shareholders for permission to issue shares to swap debt for some shareholders who sold collateral to pay off debts to the group in loans and bonds, including two major shareholders, NovaGroup and Diamond Properties.
The pressure of bond maturity also comes to the real estate group this year. According to estimates of the Vietnam Bond Market Association (VBMA), in the remaining 8 months of the year, about 163,212 billion VND of bonds will mature, of which the majority are real estate bonds, accounting for 53%.
Source: https://dantri.com.vn/kinh-doanh/doanh-nghiep-bat-dong-san-lo-lai-dan-xen-loay-hoay-giai-quyet-no-20250519113027282.htm
Comment (0)