Real estate and securities firms enter the season for reporting profits

04-May-2018 Intellasia | DTCK | 6:00 AM Print This Post

With the sharp rise of the stock market in both liquidity and stock prices, the first quarter of 2018 marked a jump of firms in business performance. The increase of liquidity and stock prices not only helped securities firms increase brokerage revenue but also increase income from financial, proprietary, advisory services, particularly limit bad debts.

Data announced by securities firms showed that in the first three months of 2018, most firms recorded significant growth in operating revenue and profit, with average growth rate of the Top 10 firms in brokerage service reaching 101 percent in revenue and 213 percent in profit. For MB Securities Company, despite having strongly set aside for provisioning, the profit increase still reaches up to 818.73 percent.

Talking to Dau tu chung khoan about forecasting business results in 2018, some leaders of big securities companies said that if the market maintains a liquidity of about six trillion dong per session, brokerage, advisory and financial services alone can bring huge income to securities firms. However, this is the calculation of major securities firms. The pressure on business results for small-scaled firms (out of the Top 20) is still very heavy.

Similar to the strong growth of securities firms, for the group of real estate firms, year 2018 is also forecasted as a positive year, particularly for the firms having many projects in the South where the real estate market is entering the peak of a price fever.

According to the financial report of the parent company of Dat Xanh Real Estate Services and Construction (code DXG), in the first quarter of 2018, the company accounted for 490 billion dong of revenue and 372 billion dong of after-tax profit. The after-tax profit of the parent company shareholder on the consolidated financial report was 818.505 billion dong. Compared to the same period of 2017 with nearly 246 billion dong of after-tax profit on the financial report of the parent company and nearly 152 billion dong of after-tax profit of the parent company shareholder on the consolidated financial report, DXG has recorded very sharp rise in business results.

For Phat Dat Real Estate Joint Stock Company (PDR), the after-tax profit of the parent company shareholder also reached nearly 153 billion dong, nearly threefold higher than the same period of 2017 (45 billion dong).

Currently, some large real estate firms in the South such as Novaland, Khang Dien, Sacomreal, DIC Corp, and Becamex IJC, etc. have not published their results in the first quarter.

However, with booming business in the last two years, the market can entirely expect good profits from real estate firms, if they have products launched to the market before. For example, Ha Do Group (HDG), despite not announcing financial report in the first quarter of 2018, will surely record breakthrough results from HaDo Centrosa project.

LDG Investment Joint Stock Company (LDG) is one of the few real estate firms recording lower profit in the first three months of 2018 compared to the same period of 2017. However, for those who like LDG shares, this is not a minus point because with the ownership of a large land fund in the South, particularly the hot areas, including Phu Quoc, the market prices of LDG’s assets have increased strongly against the book value.

 


Category: Stocks, Vietnam

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