Industrial property developers, natural rubber firms resilient on cash availability

Thursday, Apr 23, 2020 16:30

Industrial property developers are forecast to remain resilient as demand for land lease at industrial zones is forecast to keep rising. — Photo

Industrial park developers and natural rubber companies are the most resilient amid a prolonged global COVID-19 pandemic due to higher cash availability, according to BIDV Securities Corp (BSC).

BSC presumed if the disease is not controlled and cured in the next two months, companies will have no revenues and new cash flow while they still have to spend 50 per cent of previous income on operation expenses, interests and short-term liabilities.

One positive thing in the next few months is banks will extend loan dues for companies in 2020 so they are able to recover from being hit during the global pandemic, BSC said.

The brokerage firm forecast oil and gas companies, sugar producers, property developers and seaport operators will have enough cash to operate for 11.4-24.2 months.

Industrial property developers and natural rubber producers are forecast to keep operating for 220 months and 92 months, respectively, BSC forecast.

Cash availability in the two sectors is huge as those companies often receive pre-payment from customers to lease slots in industrial zones, BSC said.

Demand for industrial properties is forecast to rise sharply as foreign companies may shift their plants from China to neighbouring countries, including Việt Nam, as industrial production has been stagnant because of COVID-19. — VNS

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