Illustrative image (Photo: novaland.com.vn) Hanoi (VNS/VNA) - Domestic and foreign capital flow is expected to bolster real estateshares after the COVID-19 pandemic as many investors are paying attention tothe industry.
Vietnam Construction and Import-Export Joint Stock Corporation (VCG) soaredmore than 50 percent in the past two months, largely because the enterprise hasentered a period of stable governance, thereby focusing heavily on investmentand trading activities, VCG said.
Nearly 95 percent of the VCG shares are in the hands of large investors whohold corporate governance and the number of shares circulating outside is verylow, accounting for less than 5 percent.
At a previous general meeting of shareholders of Vinaconex, chairman of thecompany Dao Ngoc Thanh said VCG’s shareholders will benefit if VCG's shares top50,000 VND per share (2.16 USD). He suggested VCG buy back shares then put themup for sale when prices increase.
Businesses that recorded positive growth in the second quarter also attractedinvestors' attention.
In the second quarter, Novaland (NVL)'s profit increased by 73 percentyear-on-year. Its key resort real estate projects include Aqua City andNovaworld Ho Tram.
Khang Dien House Trading and Investment JSC (KDH)’s profit rose 125 percentwith a focus on developing small and medium housing with high liquidity.
Phat Dat Real Estate Development JSC (PDR)’s profit increased by 37 percentover the same period last year.
The market is also flooded with information that is set to spur real estatestocks such as Vingroup acquiring ITA to own an industrial real estate landfund, shares of Kinh Bac City Development Share Holding Corporation (KBC) beingpurchased by a group of investors, Long An-Long Hau Industrial Park in southernLong An province (LHG) holding a large amount of money after shareholdersdivesting from the manufacturing sector and pouring into real estate projectsand leaders of LDG Joint Stock Company (LDG) buying back LDG shares.
The real estate industry's second-quarter revenue exceeded VNĐ36 trillion, down24.4 percent over the same period last year. Profit after tax was reported at 7.1 trillion VND, down 47.7 percent year-on-year.
The distribution of net profit growth of the whole industry in Q2 wasequivalent to that in the first quarter. Stocks reporting negative profitgrowth accounted for 58 percent. Of them, 45 percent of businesses recordedprofits decreasing by more than 20 percent.
The industry's ability to pay interest rates improved from a low level in thefirst quarter, up 4.3 percent.
The quiet real estate market due to the pandemic harmed the launching plans ofreal estate projects, affecting inventory settlement.
The decline in business results caused the return on average assets (ROAA) andreturn on average equity (ROAE) to decline to 16.3 percent and 6.6 percent,respectively.
In the second quarter, post-tax profits of real estate giants Vinhomes (VHM)and Vincom Retail (VRE) declined respectively 55 percent and 46 percentyear-on-year.
For VHM, this was due to the decline in real estate transferring activities.
Meanwhile, Vincom Retail (VRE) had to set aside a support package worth 375billion VND for clients affected by COVID-19. The interest payments for theissuance of more than 1 trillion VND worth of bonds in April also eroded the profit ofthe company.
Companies that have a large house fund to hand over in the second half of 2020include Novaland, Hoang Huy Finance, Nam Long, Bamboo Capital, Ha Do and CEOGroup.
Insiders said that if in the fourth quarter the progress of the handover ofhouses slows, the growth of business results in 2020 of some listed companiescould become negative.
In 2019, total revenue and post-tax profit of businesses reached 219.4trillion VND and 21.1 trillion VND, respectively, up 5.3 percent and 27.3 percentcompared to the previous year./.
Vietnam Construction and Import-Export Joint Stock Corporation (VCG) soaredmore than 50 percent in the past two months, largely because the enterprise hasentered a period of stable governance, thereby focusing heavily on investmentand trading activities, VCG said.
Nearly 95 percent of the VCG shares are in the hands of large investors whohold corporate governance and the number of shares circulating outside is verylow, accounting for less than 5 percent.
At a previous general meeting of shareholders of Vinaconex, chairman of thecompany Dao Ngoc Thanh said VCG’s shareholders will benefit if VCG's shares top50,000 VND per share (2.16 USD). He suggested VCG buy back shares then put themup for sale when prices increase.
Businesses that recorded positive growth in the second quarter also attractedinvestors' attention.
In the second quarter, Novaland (NVL)'s profit increased by 73 percentyear-on-year. Its key resort real estate projects include Aqua City andNovaworld Ho Tram.
Khang Dien House Trading and Investment JSC (KDH)’s profit rose 125 percentwith a focus on developing small and medium housing with high liquidity.
Phat Dat Real Estate Development JSC (PDR)’s profit increased by 37 percentover the same period last year.
The market is also flooded with information that is set to spur real estatestocks such as Vingroup acquiring ITA to own an industrial real estate landfund, shares of Kinh Bac City Development Share Holding Corporation (KBC) beingpurchased by a group of investors, Long An-Long Hau Industrial Park in southernLong An province (LHG) holding a large amount of money after shareholdersdivesting from the manufacturing sector and pouring into real estate projectsand leaders of LDG Joint Stock Company (LDG) buying back LDG shares.
The real estate industry's second-quarter revenue exceeded VNĐ36 trillion, down24.4 percent over the same period last year. Profit after tax was reported at 7.1 trillion VND, down 47.7 percent year-on-year.
The distribution of net profit growth of the whole industry in Q2 wasequivalent to that in the first quarter. Stocks reporting negative profitgrowth accounted for 58 percent. Of them, 45 percent of businesses recordedprofits decreasing by more than 20 percent.
The industry's ability to pay interest rates improved from a low level in thefirst quarter, up 4.3 percent.
The quiet real estate market due to the pandemic harmed the launching plans ofreal estate projects, affecting inventory settlement.
The decline in business results caused the return on average assets (ROAA) andreturn on average equity (ROAE) to decline to 16.3 percent and 6.6 percent,respectively.
In the second quarter, post-tax profits of real estate giants Vinhomes (VHM)and Vincom Retail (VRE) declined respectively 55 percent and 46 percentyear-on-year.
For VHM, this was due to the decline in real estate transferring activities.
Meanwhile, Vincom Retail (VRE) had to set aside a support package worth 375billion VND for clients affected by COVID-19. The interest payments for theissuance of more than 1 trillion VND worth of bonds in April also eroded the profit ofthe company.
Companies that have a large house fund to hand over in the second half of 2020include Novaland, Hoang Huy Finance, Nam Long, Bamboo Capital, Ha Do and CEOGroup.
Insiders said that if in the fourth quarter the progress of the handover ofhouses slows, the growth of business results in 2020 of some listed companiescould become negative.
In 2019, total revenue and post-tax profit of businesses reached 219.4trillion VND and 21.1 trillion VND, respectively, up 5.3 percent and 27.3 percentcompared to the previous year./.
VNA
