Property developer FLC targets $54m profit in 2015

Wednesday, Mar 25, 2015 07:11

Property developer FLC Group has forecast a revenue of VND5.5 trillion ($255.8 million) and profit of VND1.16 trillion ($54 million) for this year. — File Photo

HA NOI (Biz Hub) — Property developer FLC Group has forecast a revenue of VND5.5 trillion ($255.8 million) and profit of VND1.16 trillion ($54 million) for this year.

It reflects a 2.5-fold growth, compared with the same period last year. This year is being considered a breakthrough year for the group as several of its real-estate projects would go on sale.

The firm has executed various real-estate projects with a total investment capital of $1 billion.

In addition, the FLC Group is also planning to list its shares on the Singaporean stock market.

Speaking at the shareholder meeting held in Ha Noi last weekend, Doan Van Phuong, FLC's general director, said its shareholders had approved to raise charter capital to VND8.4 trillion ($392.5 million). The additional charter capital would be supplemented from its property projects.

Phuong said the charter capital had been raised because it expected to see strong business in the real-estate market this year. This was also the reason why the company wants to concentrate all of its resources to quickly introduce its property projects in the market.

Trinh Van Quyet, chairman of the management board, added that the projects would certainly bring benefit to the group this year.

"There have been a number of organisations available for financing – Vietinbank for example has offered VND25 trillion funding for the 2014 to 2020 period," Quyet said, adding that the company would not have to use preferential bank loans to implement its projects.

This year, it would continue to negotiate to acquire some housing projects, especially those that have completed legal procedures and land clearance to shorten execution work, thus capturing opportunities from the strongly recovered property market.

He said that according to Savills' valuation, the total capital used for real-estate projects was up to VND10 trillion ($467 million), much higher than that of VND5.7 trillion ($266.3 million) in its financial report last year.

"Savills appraises its net asset value at up to VND28 trillion ($1.3 billion)."

Last year, the company had acquired two real-estate projects in the capital city of Ha Noi, for a combined capital of VND2.3 trillion ($107 million), adding to its M&A portfolio, which had also seen the purchase of the FLC Garden City in 2013 for VND3.5 trillion ($162.8 million).

By January 2015, FLC Group had boost its charter capital from VND771 billion ($35.9 million) to nearly VND3.75 trillion ($174.4 million). It also succeeded to issue VND800 billion ($37.2 million) worth of convertible bonds to facilitate its projects.

Market Vectors Viet Nam Exchange-traded Fund is FLC Group's major foreign shareholders, owning a 5.11 per cent stake. In addition, Deutsche Bank also participated in the meeting. — VNS

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