AsemconnectVietnam - Van Phat Hung Joint Stock Company (code VPH - HOSE) recorded a profit of VND183.32 billion in the third quarter, accumulated profit of VND145.12 billion in the first 9 months of 2024 and completed 190.9% of the yearly plan.

In the third quarter of 2024, Van Phat Hung recorded revenue of VND18.37 billion, an increase of 558.4% over the same period, profit after tax of VND183.32 billion compared to the same period with a loss of VND19.63 billion, an increase of VND202.95 billion.
During the period, Van Phat Hung no longer operated below cost price, resulting in a positive gross profit of VND6.72 billion compared to the same period, negative VND0.19 billion, an increase of VND6.91 billion.
In addition, during the period, financial revenue increased 46.5 times compared to the same period, equivalent to an increase of VND348.24 billion, to VND355.73 billion; financial expenses increased by 532%, equivalent to an increase of VND76.02 billion, to VND90.31 billion; sales and business management expenses increased by 261.6%, equivalent to an increase of VND36.44 billion, to VND50.37 billion and other activities fluctuated insignificantly.
Explaining the sudden increase in profit in the third quarter, Van Phat Hung said that during the period, it had completed the legal approval for the investment policy of the Nhon Duc Nha Be Residential Area project with a scale of 16.7 hectares, so the Company transferred 99% of shares in its subsidiary, Nha Be Real Estate Joint Stock Company, to a partner. Currently, the Company is completing the final steps to complete the transfer as well as focusing resources to implement the next new projects.
According to research, in 2019, Van Phat Hung purchased 49% of Nha Be Land's capital from Nha Be Garment Corporation at a price of VND9,690/share and continued to gradually increase the ownership ratio to 99% through additional share purchase offers.
By June 2021, Van Phat Hung had signed a contract to transfer 55% of the capital at Nha Be Land to Lotte Land Company Limited. The partner had transferred VND200 billion in advance to the company but still could not transfer due to insufficient legal basis.
Accumulated in the first 9 months of 2024, Van Phat Hung recorded revenue of VND33.93 billion, down 26.6% over the same period, after-tax profit recorded a profit of VND145.12 billion compared to the same period, a loss of VND18.41 billion, an increase of VND163.53 billion.
In 2024, Van Phat Hung plans to have revenue of VND253.56 billion, after-tax profit is expected to be VND76 billion.
Thus, at the end of the first 9 months of 2024, Van Phat Hung recorded a profit of VND145.12 billion and has completed 190.9% of the annual plan.
In contrast to the situation of profitable business again, in the first 9 months of 2024, Van Phat Hung continued to record a negative operating cash flow of VND361.77 billion compared to the same period of negative VND368.19 billion. In addition, during the period, investment cash flow was positive at VND1,066.2 billion and financial cash flow was negative at VND363 billion, mainly paying down debt.
Thus, after the investment cash flow was recovered from capital contributions to units, this cash flow offset the deficit in operating cash flow and helped pay down debt at Van Phat Hung.
In terms of asset size, as of September 30, 2024, Van Phat Hung's total assets decreased by 9.6% compared to the beginning of the year, equivalent to a decrease of VND227.6 billion, to VND2,138.7 billion. In which, the main assets were short-term receivables recorded at VND994.7 billion, accounting for 46.5% of total assets; cash and short-term financial investments recorded at VND362.23 billion, accounting for 16.9% of total assets; long-term receivables recorded at VND229.7 billion, accounting for 10.7% of total assets; Inventory recorded VND207.6 billion, accounting for 9.7% of total assets and other items.
During the period, assets fluctuated strongly, mainly inventory decreased by 80.6% compared to the beginning of the year, equivalent to a decrease of VND864.3 billion, to VND207.6 billion; cash and short-term financial investments increased by 16.39 times, equivalent to an increase of VND341.4 billion, toVND 362.23 billion; short-term receivables increased by 45.7%, equivalent to an increase of VND311.9 billion, to VND994.7 billion ...
In fact, in the third quarter, Van Phat Hung did not explain in detail the inventory of each project but mainly recorded the cost of production and unfinished business decreased from VND1,063.1 billion to VND198.3 billion. However, previously, at June 30, 2024, Van Phat Hung explained that the inventory of the Nhon Duc residential area project was VND866.8 billion, accounting for 81.45% of the total cost of unfinished production and business.
Therefore, with the Company explaining that it had transferred the Nhon Duc residential area project, it is highly likely that the inventory decrease in the third quarter was related to this project.
Regarding capital sources, by the end of the third quarter, Van Phat Hung's total short-term and long-term debt had decreased by 33.6% compared to the beginning of the year, equivalent to a decrease of VND266.9 billion, to VND526.9 billion and equal to 45.6% of total equity (at the beginning of the year, the outstanding debt was VND1,020 billion and accounted for 77.8% of total equity).
N.Nga
Source: VITIC/Tinnhanhchungkhoan