Novaland reports 88 per cent revenue growth in H1

Friday, Aug 02, 2019 11:22

NovaWorld Phan Thiet developed by Novaland recently won the Dot Property Award 2019 for Best Integrated Resort Landscape Architectural Design Vietnam.

Property developer Novaland Group has reported an 88 per cent year-on-year jump in net revenues in the first half of the year.

In a report on its business results, the company said revenues had been worth nearly VND8.1 trillion (US$348.3 million).

Gross profit was VND2.2 trillion, a 53 per cent jump.

In the first six months NVL handed over 2,936 units, a year-on-year increase of 185 per cent and 50 per cent of its full-year target.

The company attributed the excellent results to projects like The Sun Avenue, Sunrise Riverside, Richstar, Saigon Royal, Newton Residence, and Orchard Parkview.

An NVL spokesman said the company is well on course to achieve its targets for the upcoming quarters.

As of June the company’s assets were valued at VND74.8 trillion and owners’ capital was worth nearly VND22.2 trillion, 7 per cent and 9 per cent higher than at the end of last year.

Cash and cash-equivalents at the end of June were VND7.3 trillion.

Debts remained unchanged from the end of last year at VND27.8 trillion

Leading hospitality developer

Novaland, which used to focus on housing projects in HCM City, is now one of the leading real-estate developers in Viet Nam.

From 2019, it entered the hospitality sector aiming to become a leading conglomerate with interests in real estate, finance, tourism, and infrastructure.

To achieve the goal, land and financial resources are two essential factors, and Novaland said it is well prepared in both cases.

Prestige is cited as another factor helping the company fulfil the goal.

A bond issue of $390 million last year underlined the company’s global prestige.

In the domestic market, it has won the trust of customers by completing projects and handing over units to buyers in a timely manner and high selling rate at most of the projects In terms of land parcels, the company has around 4,270ha which owned and researching to develop in future, ensuring it has enough for development for the next 10-20 years.

It said it would use the lands to develop three key products: housing areas in HCM City, hospitality projects in tourist places and satellite urban areas in HCM City’s neighbouring provinces.

This year, Novaland plans to bring into the market 6,500 units, 44 per cent higher than last year. Of them, 4,200 will be housing and 2,300 will be hospitality products.

Investment will also be made in the finance sector, it said.

Prestige strengthened

By the end of June Novaland had launched many projects including Aqua City in Dong Nai, the first eco-urban area in the province.

The other projects to have attracted interest are NovaWorld Phan Thiet in the south-central province of Binh Thuan and NovaWorld Ho Tram in the southern province of Ba Ria-Vung Tau.

The two hospitality projects, NovaWorld Ho Tram and NovaWorld Phan Thiet, have heated up the country’s hospitality market since each is a complex comprising.

Elsewhere, the company’s share, NVL, has been once again included in the Viet Nam Sustainable Index (VNSI), a cap-weighted, free float-adjusted index consisting of listed companies with the highest sustainability scores announced every year in July.

The company is also in the VN30, a list of the top 30 shares on the Vietnamese stock exchange in terms of market capitalisation.

Novaland has also been named among the top 50 efficient companies in Viet Nam, top two property developers by Vietnam Report, and Best Developer by Dot Property Awards 2019.

The awards are a testimony to the company’s prestige and pioneering position on the stock exchange. — VNS

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