Vinhomes posts 2.5-fold growth in Q1 after-tax profit

Vinhomes, a subsidiary of Vietnam’s largest listed conglomerate Vingroup, reported an after-tax profit of VND11.92 trillion ($507.65 million) in the first quarter of 2023, 2.5 times higher than the same period last year.

Its net revenue reached nearly VND29.3 trillion ($1.25 billion), a 3.3-fold rise year-on-year, mainly thanks to the handover of 2,600 low-rise housing units at its Vinhomes Ocean Park 2 Grand project in Van Giang district, Hung Yen province, according to the firm's Q1 consolidated financial statement.

Vinhomes' total assets exceeded VND377 trillion ($16.05 billion), an increase of over 4% from the beginning of the year, including VND117.2 trillion in short-term receivables. Its equity hit over VND160 trillion ($6.8 billion), with undistributed profit worth nearly VND112 trillion ($4.77 billion).

At its annual general meeting scheduled for April 27, Vinhomes will ask shareholders to approve a 2023 revenue target of VND100 trillion ($4.25 billion) and after-tax profit of VND30 trillion ($1.28 billion), up 60% and 3% year-on-year, respectively.

The firm, listed on the Ho Chi Minh Stock Exchange (HoSE) as VHM, aims to push sales of remaining apartments at Vinhomes Ocean Park 2 and 3 in Hung Yen province. It plans to launch new big urban area projects this year, depending on market conditions.

Earlier in March, Reuters reported that Singaporean real estate giant CapitaLand Group is in talks to acquire assets worth roughly $1.5 billion from Vinhomes.

It cited insiders as saying CapitaLand is considering buying part of Vinhomes' Ocean Park 3 project, a 294-hectare resort city-style development near Hanoi, and another project in the northern city of Hai Phong.

Vinhomes will continue opening two social housing projects named Happy Home for sale in Thanh Hoa and Quang Tri provinces. The firm will also complete the legal process to expand Happy Home to Hai Phong city, Hung Yen province and Khanh Hoa province. This is one of Vinhomes’ development focuses.

The developer is actively promoting investment activities to increase the occupancy rate of industrial real estate projects in Cat Hai district, Hai Phong city.

With the advantage of land funds, experience in project development and factors supporting industry growth, Vinhomes will also finish the legal process and build infrastructure for some industrial park (IP) projects this year.

The firm will research and apply modern industrial real estate models like smart IPs, ecological IPs, and large-scale specialized IPs, it said.

On the HoSE, VHM was sold for VND50,500 ($2.15) per share at the Monday session.