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| Vinhomes Dragon Bay, one of the many new projects from Vingroup. The company has been having increasing revenue surpluses in the past few years — Photo vingroup.net |
HA NOI (Biz Hub) — Vingroup Joint Stock Company (Vingroup) has announced its third quarter net revenue of VND34.6 trillion (US$1.5 billion), an 80 per cent rise compared to the same period last year.
The net revenue accounts for 77 per cent of Vingroup's annual plan, as per its financial report for the first nine months of 2016.
The company's total revenue after tax is VND3.09 trillion, more than triple the amount during the same period last year, and slightly higher than the post-tax revenue target for 2016 of VND3 trillion.
The accumulated revenue from all of Vingroup's brands, such as Vinhomes, Vincom Retail, Vinpearl, Vinschool and VinMart, has increased by 47 per cent compared to the same period in 2015.
As of the end of September, Vingroup's total worth has touched VND173.2 trillion, a rise of VND27.6 trillion from December 31, 2015, with the owners' equity totalling VND41.9 trillion, up by VND4.3 trillion.
According to Standard and Poor's Global Rating (S&P Global), Vingroup's outlook has been revised from stable to positive with a "B" long term corporate credit and issue rating. The company's capital expenditure would need to remain elevated at close to VND100 trillion over the 2016-18 period, mostly for land purchases. S&P predicts Vingroup will partly finance the spending using its growing cash flows, and its reported debt will peak in 2017 at about VND53 trillion.
The positive outlook reflects the prospects for an upgrade in the next 12-18 months if Vingroup consolidates its record of rolling out its property development and retail operations, translating into a more prudent and predictable leverage.
Five of Vingroup's brands are in Viet Nam's top 50 most valuable brands list, as per British business valuation consultancy Brand Finance. This includes Vinhomes, which ranks the fifth most valued domestic brand. — VNS