Real estate major Khang Dien expects $43 mln profit in 2023

Khang Dien House Trading and Investment JSC, a major real estate investment, trading and management company in Ho Chi Minh City, is targeting an after-tax profit of VND1 trillion ($42.64 million) in 2023, down 9.3% year-on-year.

The company, listed on the Ho Chi Minh Stock Exchange as KDH, aims at a revenue of VND3.1 trillion ($132.18 million), up 6.5%, according to its annual shareholder meeting document.

KDH plans to promote sales of the remaining products of the townhouse and villa project The Classia in Thu Duc city; build and trade the high-end apartment project The Privia in Binh Tan district (1,043 apartments on an area of 1.8 hectares); and implement the villa and townhouse project Clarita (scale of 5.8 hectares), and the Emeria project (6 hectares).

The company plans to seek shareholders' approval to pay more than VND716 billion ($30.53 million) in dividends for 2022 at the rate of 10% in cash and 10% in shares with an expected issue volume of more than 71.6 million shares.

After the issuance, the charter capital of KDH would increase from more than VND7.17 trillion ($305.64 million) to over VND7.89 trillion ($336.22 million).

KDH also plans to issue shares under the Employee Stock Ownership Plan (ESOP). The expected issue volume is 10.8 million units, accounting for 1.5% of total outstanding shares. The issue price is VND12,500 ($0.53) per share, nearly 43% lower than the market price of KDH shares on the stock market.

The proceeds, estimated at VND135 billion ($5.76 million), would be used to supplement the company's business capital.

KDH plans to propose the company's shareholders cancel a plan to issue bonds to the public due to its financial and business restructuring.

According to the old plan, KDH planned to issue VND2 trillion ($85.28 million) in non-convertible bonds, without warrants or collateral. The bond lot has a term of 36 months, with an interest rate ranging from 9-10% per year.

In mid February, Hanwha Life Insurance Company Limited, VOF Investment Limited, Kiwoom Vietnam Tomorrow Securities Master Fund (Equity), Delta Global Financial Holdings Private Limited sold all KDH shares of Khang Dien House Trading and Investment JSC.

Khang Dien reported net revenue of VND2.91 trillion ($123.46 million) last year, down more than 22% year-on-year, and after-tax profit was VND1.08 trillion ($45.85 million), down 10.2%.

At Friday's closing session, the KDH shares price hit VND28,050 ($1.2) a piece.

Some apartment and villa projects of Khang Dien are Safira Khang Dien (District 9, HCMC); Lovera Vista (Binh Chanh district, HCMC); Verosa Park (District 9, HCMC); Parcspring (District 2, HCMC); Topia Garden (Vung Tau town, Ba Ria-Vung Tau province); and Mega Village, Jamila Khang Dien, The Venica, Lucasta, Jamila Khang Dien, all in District 9, HCMC.