Many real estate tycoons make billions in profits, some still struggle

Real estate companies listed on the stock exchange are rushing to announce financial reports - Photo: BONG MAI

Billionaires enjoy booming profits

According to the financial report for the first quarter of 2025, Vinhomes Joint Stock Company (stock code VHM) continues to lead the list of listed enterprises operating in the real estate sector, with revenue of nearly VND 15,700 billion. After deducting expenses, this "giant" has a net profit after tax of more than VND 2,650 billion, an increase of 193% over the same period last year.

Meanwhile, Vingroup Corporation (VIC) also achieved impressive results with revenue exceeding VND84,050 billion, up 287% over the same period last year. Profit after tax was over VND2,240 billion (+68%).

In addition to real estate business, the company chaired by billionaire Pham Nhat Vuong is also focusing on the electric vehicle sector.

In the real estate sector, both Kinh Bac Urban Development Corporation (KBC) and Nam Long Investment Corporation (NLG) also recorded quite positive results in the first quarter of this year.

Specifically, KBC achieved revenue of VND1,500 billion, up 25% over the same period. Profit after tax reached VND300 billion, thanks to industrial park and urban area projects in Bac Ninh and Hai Duong. The enterprise operated by tycoon Dang Thanh Tam continues to expand the land area for lease in industrial parks, serving the production and investment needs of enterprises renting premises and renting/building factories.

Lower than some competitors, Nam Long reaped about VND1,200 billion in revenue and VND120 billion in after-tax profit in the first quarter of the year. However, this result is also noteworthy in the difficult context of the general market. The company implements a strategy of developing affordable and mid-range housing projects, targeting customers in Ho Chi Minh City and neighboring areas.

At the same time, the giant Dat Xanh (DXG) also recorded a revenue of about 1,500 billion VND and a profit after tax of 300 billion VND, a significant increase. Enterprises with increased profit after tax include: Saigon VRG Investment (SIP), Saigon 3 Group Development Investment (SGI), Dat Phuong, Long Hau, Khang Dien, Sonadezi Chau Duc, Viglacera...

The "storm" has not completely subsided in many large enterprises.

Not all the “big guys” recorded good profits. In the first quarter of 2025, Novaland Group (NVL) reaped net revenue of nearly VND 1,780 billion, 2.5 times higher than the same period last year.

Due to high financial costs, business management costs, and other losses, the company ultimately recorded a net loss after tax of VND476 billion. Although the "storm" has not completely passed, compared to the previous period, the situation at this real estate company has improved somewhat.

Novaland's total assets as of the end of the last quarter reached more than VND234,800 billion, of which inventories accounted for nearly 64%. The company had about VND186,000 billion in liabilities, including more than VND59,000 billion in loans.

Similarly, Sunshine Homes (SSH) faced a not-so-optimistic situation, with revenue reaching nearly VND187 billion and after-tax profit only reaching over VND7.3 billion in the last quarter, down nearly 17% and 94% respectively compared to the same period last year. The main reasons were due to increased cost of goods sold, business management costs and interest expenses.

However, Sunshine Homes still sets a target of VND4,000 billion in revenue (up 36% compared to 2024) and VND500 billion in pre-tax profit in 2025. To achieve the plan, the company needs to control costs well, improve operational efficiency and boost product consumption.

Many other real estate businesses also suffered losses in the first quarter of the year, typically including: DIC Group, OGC Group, Vinahud...

Bond maturity pressure

According to statistics from VNDirect Securities, in 2025, the real estate group will be under great pressure from corporate bond debt, with more than VND 130,000 billion due, accounting for 64% of the total market value. Notably, 43% of this (VND 56,000 billion) had been extended before, showing increased financial pressure.

Although the corporate bond market has recovered, the real estate group still faces challenges in investor confidence and the risk of late payment.

The Vietnam Association of Realtors (VARS) predicts that the real estate market will flourish from the second quarter of 2025 with many positive information, but there are still risks to the financial health of investors.

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Source: https://tuoitre.vn/nhieu-dai-gia-bat-dong-san-lai-ngan-ti-mot-so-van-kho-khan-20250510110522024.htm