Multi-sector firm REE targets profit of $114 mln in 2023

Vietnam's leading multi-sector corporation REE is targeting revenue of VND10.96 trillion ($464.79 million) in 2023, and after-tax profit of VND2.7 trillion ($114.48 million), up 17% and 0.3% year-on-year, respectively.

The energy sector is expected to earn the company a revenue of VND5.2 trillion ($220.34 million), down 3.1% year-on-year, and after-tax profit of VND1.35 trillion ($57.27 million), down 18.9%.

The refrigeration and mechanical engineering is forecast to record revenue of VND3.38 trillion ($143.41 million), up 20.1%, and after-tax profit of VND160 billion ($6.78 million), up 20.2%.

The real estate sector is looking to post revenue of VND2.23 trillion ($94.53 million), up 115.1%, and after-tax profit of VND930 billion ($39.42 million), up 60.7%.

The clean water and environment sector is expected to reach revenue of VND151 billion ($6.4 million), down 1.8%, and after-tax profit of VND335 billion ($14.2 million), down 1.1%.

REE said it would set a cautious business plan for the energy segment in the context of macroeconomic and geopolitical difficulties expected to continue for a long time.

For the real estate sector, in the new financial year, REE said it will complete compensation and site clearance and apply for a construction permit for the Phu Hoi commercial housing project in Nhon Trach district, Dong Nai province. For the Bo Xuyen commercial housing project in Thai Binh province, the company is expecting to sell 100% of low-rise housing.

For the office leasing segment, REE targets the occupancy rate of office buildings at 98.5%. In Q4/2023, the etown 6 building will be put into operation with a total leasable area of 36,798 square meters costing $29 per square meter, with an expected occupancy rate of 30% in the first quarter of operation.

In 2022, REE recorded a net revenue of VND9.37 trillion ($397.28 million), up 61% year-on-year, exceeding its target by 1%. The company achieved after-tax profit of VND3.51 trillion ($148.92 million), up 64%, exceeding the target by 70% and scoring a record high in the company's 23-year listing history.

As of December 31, 2022, the firm's total assets stood at more than VND33.91 trillion ($1.44 billion), up 6% compared to the beginning of the year.

REE's liabilities decreased by 5% to VND14.72 trillion ($623.81 million). Equity increased 17% to VND19.21 trillion ($814.35 million), of which undistributed after-tax profit was VND10.71 trillion ($453.83 million).

On the Ho Chi Minh Stock Exchange, the REE share price hit VND68,000 ($2.88) at the closing session on Friday.

In REE's shareholder structure, Platinum Victory Pte. Ptd is currently the largest investor, followed by board chairwoman Nguyen Thi Mai Thanh with a 12.2% stake.