Novaland Investment Group Corporation (NVL) has announced its financial statement for the fourth quarter of 2023, with a decrease in revenue but a surprisingly strong increase in profit, reaching the highest level in the past three years. (Photo: Novaland)Novaland, listed on the Ho Chi Minh Stock Exchange (HoSE) as NVL, has announcedits financial report for the fourth quarter of 2023, with a decrease in revenuebut a surprisingly strong increase in profit, reaching the highest level in thepast three years at over 1.64 trillion VND, nearly 13 times higher than thesame period in 2022.
For the entire year of 2023, Novaland reported a net profit after tax of nearly685 billion VND, lower than the 2.18 trillion VND in the previous year.
The news of Novaland's significant profit in the fourth quarter, whichcontributed to the overall annual profit, comes as a surprise as the realestate market remained sluggish, and the company had to make efforts toaccumulate funds for debt repayment in the past year, not to mention thechallenges faced by many ongoing projects.
One surprising case is Vinhomes (HoSE: VHM) of billionaire Pham Nhat Vuong. Thecompany reported a net profit after tax of 33.3 trillion VND in 2023, a 14%increase compared to the previous year, thanks to growth in revenue.
Vinhomes recorded consolidated net revenue of 121.4 trillion VND,a 49% increase compared to 2022, mainly driven by the handover of 9,800low-rise real estate units in the Vinhomes Ocean Park 2 and 3 projects in HungYen province.
The company also saw its total assets increase by 24% to 447trillion VND, and its equity capital increase by 23% to 182 trillion VND by theend of 2023.
Another case is An Gia Investment and Development Corporation (HoSE: AGG),which reported a pre-tax profit of 109 billion VND and a net profit of 65billion VND in the fourth quarter. This represents a significant improvementcompared to the losses of 72 billion VND and 186 billion VND in the same periodof the previous year.
The company closed 2023 with a pre-tax profit of 582 billion VND, a 2.6-foldincrease, and a net profit of 460 billion VND, a 4.8-fold increase compared tothe previous year. This is also the highest net profit in the past five yearsand the second-highest in history (second only to 565 billion VND in 2018).
It is worth noting that inventories decreased by 46% to 2 trillion VND,accounting for 21.6% of the assets, concentrated in projects such as TheWestgate (1.38 trillion VND), The Standard (304 billion VND), The Signal (233billion VND) and The Song (56 billion VND).
Similarly, Khai Hoan Land Corporation (HoSE: KHG) reported anegative core business operation of 44 billion VND in Q4/2023 but managed toturn losses around and record a profit of over 7 billion VND due to investmentcooperation.
Century Real Estate Corporation - Cen Land (HoSE: CRE) also showed a slightimprovement in Q4/2023, recording a modest profit of 1 billion VND.
Many other real estate companies have reported significantdecreases in revenue and profit. However, a positive point is that thesecompanies have reduced losses through cost-cutting measures, streamliningoperations, and strengthening sales and asset transfer to restructure theirbusinesses after a few difficult years.
Apart from large companies with various restructuring activities,small and medium-sized real estate enterprises have also shown more positivesignals in terms of revenue. Although they have not yet reached the levels ofprevious years, it may indicate a warming up of the general real estate market.
In the stock market, the overall picture of real estate stockprices is no longer pessimistic.
According to statistics, only 21 listed real estate stocksexperienced price declines in 2023. Two stocks remained unchanged with lessthan 1% decrease, while the remaining 59 stocks increased, with seven of themincreasing by over 100%.
The highest increase of 166% was recorded by the stock VC7 of BGICorporation; DTD (Investment and Development Thanh Dat) and QCG (Quoc Cuong GiaLai) also had similar increases, reaching 161% and 159%, respectively. Next areVPH of Van Phat Hung (113%), PDR of Phat Dat Real Estate (105%), SZC ofSonadezi Chau Duc./.
VNA
