Real estate major Novaland forecasts profit to plummet 90% in 2023

Leading Vietnamese property developer Novaland is targeting revenue of VND9.53 trillion ($405.78 million) and post-tax profit of VND214 billion ($9.11 million) in 2023, down 14.5% and 90% year-on-year, respectively.

The figures will be officially released at the company's annual general meeting of shareholders (AGM) on June 22.

This year, the company will continue to build and complete a series of projects in Ho Chi Minh City, Dong Nai, Binh Thuan, and Ba Ria-Vung Tau provinces, including The Grand Manhattan, Aqua Vity, Novaworld Ho Tram, and Novaworld Phan Thiet.

Novaland also plans to hand over housing projects in Ho Chi Minh City and resort real estate projects in Dong Nai, Binh Thuan, and Ba Ria Vung Tau provinces to customers.

During the upcoming AGM, the board of directors will submit a resignation letter from board member Nguyen Tran Dang Phuoc and propose electing another board member. The board consists of five people, including two independent members.

The board will also propose canceling an approved plan to pay dividends through a share issuance, and scraping a plan to issue shares to increase capital.

Regarding dividend payment, Novaland said that there is no plan to pay dividends for 2022 and 2023. Therefore, Novaland's shareholders will not be paid dividends from 2021 to 2023 if the AGM approves the proposal.

In the first quarter of this year, Novaland reported net revenue of VND604 billion ($25.7 million), down 70% year-on-year and the lowest revenue since it listed on the stock exchange at the end of 2016.

The company posted a loss of VND410 billion ($17.45 million), its first quarterly loss since its bourse listing.

Novaland earned revenue of VND11.15 trillion ($474.5 million) in 2022, a year-on-year decrease of 25%, according to its audited report.

The Ho Chi Minh City-based major’s after-tax profit fell to VND2.18 trillion ($92.76 million), down 36.85% year-on-year, and equal to about one-third of its 2022 target.

On the Ho Chi Minh Stock Exchange (HoSE), NVL shares closed Wednesday's session at VND13,500 ($0.57).