Vinhomes earns $455 mln in H1 net profit

Vinhomes, the largest residential housing developer in Vietnam, recorded a consolidated net profit of VND11.5 trillion ($454.6 million) in H1/2024, down 47% year-on-year and reaching 33% of the year’s target.

A subsidiary of the nation’s largest private conglomerate Vingroup, Vinhomes earned VND13.66 trillion ($539.5 million) in pre-tax profit and VND36.43 trillion ($1.44 billion) in revenue between January and June, down 51% and 41% year-on-year, respectively.

In the second quarter, the firm, listed on the Ho Chi Minh Stock Exchange as VHM, earned a net profit of VND10.6 trillion ($418.9 million) on revenue of VND28.2 trillion ($1.11 billion), up 9% but down 13% year-on-year, respectively.

VHM said in its H1 earnings report that its revenue and profit primarily came from the sale of units at the 877-hectare Vinhomes Royal Island mega urban project in the northern port city of Hai Phong, as well as from existing projects.

It posted H1 sales of VND51.7 trillion ($2.04 billion) and had unearned revenues of VND118.66 trillion ($4.69 billion) as of end-Q2.

Despite the H1 underperformance, Vinhomes said it was confident of achieving its 2024 business targets, including record revenue of VND120 trillion ($4.74 billion) and net profit of VND35 trillion ($1.38 billion).

As of June 30, the value of the firm’s total assets and equity stood at VND494.46 trillion ($19.52 billion) and VND206.78 trillion ($8.17 billion), up 11.2% and 13.2% from end-2023, respectively.

Its accounts receivable rose by VND4.1 trillion ($161.9 million) to VND137 trillion ($5.41 billion), and inventories rose by VND1 trillion ($39.49 million) to VND56.31 trillion ($2.22 billion). Its liabilities hiked 9.8% to VND287.67 trillion ($11.36 billion).

Vinhomes' portfolio includes mega urban projects like Vinhomes Ocean Park I, II, III; Vinhomes Grand Park; and Vinhomes Smart City in Hanoi, besides Vinhomes Royal Island and several others in the southern region.

VHM shares closed at VND37,850 ($1.49) apiece on Friday, up 1.1%, for a market capitalization of VND164.81 trillion ($6.51 billion).