Housing firms extend losing cycle in Q1

Major Vietnamese housing firms Dat Xanh, Novaland, and Danh Khoi reported losses in the first quarter of 2023, while Vinhomes saw profits rising 2.5 times year-on-year.

Dat Xanh Group JSC posted a loss of VND117 billion ($4.98 million) in Q1, while in the same period last year it made a profit of VND408 billion ($17.37 million).

The company, listed on the Ho Chi Minh Stock Exchange (HoSE) as DXG, recorded net revenue of VND378 billion ($16.09 million), down 79%, according to its financial statement.

Closing the Friday session, DXG was trading at VND15,500 ($0.66).

Similarly, leading real estate developer Novaland posted a loss of VND410 billion ($17.46 million) in Q1, the first loss since the company began releasing its financial indices in 2016. In the same period last year, it made a profit of more than VND1.05 trillion ($44.5 million).

The Ho Chi Minh City-based firm’s net reveue fell to VND604 billion ($25.7 million), down 69% year-on-year, its lowest revenue since Q4/2016.

The company, listed on the Ho Chi Minh Stock Exchange as NVL, finished at VND13,850 ($0.59) on Friday.

Notably, Danh Khoi Group JSC did not record any Vietnamese dong in revenue and a loss of VND16.8 billion ($715,300) in Q1, while in the same period last year it made a profit of VND2.4 billion ($102,200).

The company, listed on the Hanoi Stock Exchange (HNX) as NRC, said that the difficult situation facing the real estate market had led to a drop in sales in the service segment, while the company had not recorded revenue or profit from projects.

On the HNX, NRC shares stood at VND5,500 ($0.23) at Friday's close.

Meanwhile, Phat Dat Real Estate Development Corporation, listed on the Ho Chi Minh Stock Exchange as PDR, cut its series of losses, but net revenue was down 69% to VND192 billion ($8.17 million) and post-tax profit down 91% to VND22.4 billion ($953,800).

On the HoSE, PDR shares hit VND14,950 ($0.64) at Friday's close.

In the opposite direction, Vinhomes, a subsidiary of Vietnam’s largest listed conglomerate Vingroup, reported an after-tax profit of VND11.92 trillion ($507.65 million) in Q1, 2.5 times higher than the same period last year.

Its net revenue reached nearly VND29.3 trillion ($1.25 billion), a 3.3-fold rise year-on-year, mainly thanks to the handover of 2,600 low-rise housing units at the Vinhomes Ocean Park 2 Grand project in Van Giang district, Hung Yen province, according to the firm's Q1 consolidated financial statement.

The firm, listed on the Ho Chi Minh Stock Exchange (HoSE) as VHM, aims to push sales of remaining apartments at Vinhomes Ocean Park 2 and 3 in Hung Yen province. It also plans to launch new big urban area projects this year, depending on market conditions.

On the HoSE, VHM reached VND53,400 ($2.27) on Friday.

According to a market report by the Vietnam Association of Realtors (VARS), the real estate sector has been depressed due to tightening policies on credit, corporate bond market woes, and legal problems, forcing all market participants into a state of limbo.