Property developer First Real sets sights on becoming number 1 in central Vietnam

First Real JSC will do its best in the next two years to become the number 1 real estate developer in central Vietnam, said chairman Nguyen Anh Tuan.

Speaking at the firm’s recent annual general meeting of shareholders (AGM), he expressed confidence that the firm would be able to meet the ambitious targets for the year.

First Real, listed on the Ho Chi Minh Stock Exchange (HoSE) as FIR, targets revenues of VND350 billion ($14.13 million), double the 2023 figure, with after-tax profits of VND80 billion ($3.23 million), 4.2 times higher than last year.

In the first quarter (October 1-December 31) of the 2023-2024 fiscal year, the company recorded VND54 billion ($2.18 million) in revenue and VND9.7 billion ($391,600) in after-tax profit, down 9.3% and 34.4% year-on-year, respectively.

Tuan said that in 2023, with sluggish real estate business situation across the country, the firm failed to complete its business plan. The project implementation process was also slow, partly due to policy factors and legal bottlenecks.

Once the new Law on Real Estate Business, Housing Law, and Land Law take effect, investment and project implementation will become clearer, safer, more convenient, and more effective, thus pushing market demand, he said.

He noted that since the beginning of 2024, specifically after Tet, the Lunar New Year festival, the real estate market has seen transactions pick up.

First Real’s inventory has received more interest and orders from customers, which was a very positive sign, he said.

"We expect business activities to be better in 2024 and are confident that the company will fulfil this year’s plan," he said.

Regarding orientations for the coming years, Tuan stated First Real will mainly develop the land plot segment, and sell some ineffective assets and investment projects to focus resources on this segment.

‘Big games’ ambition

In 2023, First Real’s revenue decreased 56% year-on-year to VMD169 billion ($6.82 million) while its after-tax profit plunged 83% to VND19 billion ($767,000). The board of directors proposed non-payment of the 2023 dividend and this was approved by shareholders.

Last year, First Real bought 10 million shares worth VND200 billion ($8.07 million) in the Bach Dang Complex, owner of the Bach Dang hotel complex at the prime location of 50 Bach Dang street, Hai Chau 1 ward, Hai Chau district, Danang city.

Chairman Tuan said this was an important strategic step, allowing the company to expand its business activities and strengthen its position in the apartment rental sector in the central city – a segment that brings stable cash flow.

The company also entered the medical sector, spending VND64 billion ($2.58 million) to establish FQ Vietnam Investment JSC, headquartered at 81 Lam Son street in Tam Ky town, Quang Nam provnce.

This has paved the way for its investment in a 500-bed international general hospital in The Trident City urban area in An Phu ward, Tam Ky town. The project is expected to come into operation at the end of 2025.

“With these important steps, First Real affirms its ambition to enter the ‘big game’. We not only want to become one of the leading names in the real estate industry, but also contribute to comprehensive development of society."

To access more capital for business activities and new projects, First Real plans to offer a maximum of 21.4 million shares at a price of VND10,000 ($0.4) each to existing shareholders, thus increasing its charter capital by 33% to VND856 billion ($34.56 million).

It also wants to issue a maximum of VND1.2 trillion ($48.45 million) in private placement bonds in 2024 or 2025.

At the end of 2023, the firm had total assets of VND1.34 trillion ($54.1 million), with more than 53% being receivables.

In the stock market, FIR recorded a continuous decline from VND35,000 to VND9,780 ($0.4) per share in the past year. It closed Friday at VND9,580 per share.