Novaland expects record revenue in 2017

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Báo Đầu Tư English - 5 month(s) ago 14 readings

Nova Real Estate Corporation (Novaland), one of the leading property developers in Vietnam is targeting a revenue of VND17.528 trillion ($773 million) for the whole year of 2017.

According to Novaland’s Phan Le Hoa, director of Capital Markets and Investor Relations, in the first quarter of 2017, Novaland saw positive business activities fetching a revenue up to VND1.91 trillion ($84.2 million) and after-tax profit of VND409 billion ($18 million), an increase of 164 per cent compared to 2016.

“Novaland’s business activities will be stable and reach its target to 2020 based on the products which were sold in 2014, 2015, and 2016. In 2017, we are targeting to increase our land fund by M&A activities in key locations of Ho Chi Minh City and other high-potential cities, such as Can Tho and Danang,” Hoa said.

The company now has a land fund of more than 10 million square metres of construction floor to be developed in the next five years.

Novaland has also just announced that it had acquired 99.9 per cent of the stakes in Gia Duc Real Estate Company at the price of VND1.939 trillion ($85.5 million).With this acquisition, Novaland will be the owner of the 181-hectare The Sunrise Bay in the central city of Danang.

Novaland is finishing the legal procedures to officially become the owner of this project.

With enough capital and technology in real estate development, Novaland has been participating directly in the management, inspection, and operation at all phases of this project.

The Sunrise Bay is developed with the format of Marine Bay Sands in Singapore with leading global designers, such as Moshe Safdie and Aedas. It will be an international-standard urban-resort, entertainment, and trading complex when it comes into operation.

Established in 1992, Novaland has now become one of the leading real estate developers in Vietnam.

According to the audit report in 2016, Novaland achieved a net revenue of VND7.354 trillion ($324 million), an increase of 10.3 per cent compared to 2015. The company’s after-tax profit was at VND1.659 trillion ($73million), an increase of 276 per cent compared to 2015.

In 2016, Novaland sold 8,000 property units, accounting for 23 per cent of the total property market of Ho Chi Minh City.

Officially listed at the Ho Chi Minh City Stock Exchange in December 2016, after more than three months, Novaland’s market capitalisation was nearly $2 billion and is now among the top ten biggest capitalised stocks of the whole market and has been most an eye-candy to foreign investors.

Since December 2017, Novaland’s stock has been officially included in the MSCI Global Standard Indexes and entered the MVIS Vietnam Index in March 2017.

Novaland now has a portfolio of more than 40 projects with different types of products, such as townhouses, office-tels and condotels, trading centres, land houses, and villas.

So far, the company has successfully handed over nine projects to its customers. In 2017, it plans to hand over more than 10 others in Ho Chi Minh City. Among these are Lakeview City, The Treasure, Rivergate, Orchard Garden, and Garden Gate.

By Bich Ngoc

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