AsemconnectVietnam - In the context of the real estate market still facing many difficulties, the outstanding growth in financial revenue has helped Taseco Land significantly improve its profit results.

Q3/2024 profit increased 21 times
Taseco Real Estate Joint Stock Company (Tasecoland, UPCoM: TAL) has just announced its financial report for the third quarter of 2024, recording positive results in the context of the real estate market facing many challenges. Specifically, net revenue increased by 65% over the same period, reaching nearly 311 billion VND. Despite the sharp increase in cost of goods sold and expenses, the company reported a profit after tax of 185 billion VND, nearly 21 times higher than the same period.
In the last business period, Taseco Land was under heavy cost pressure. Along with the expansion in revenue, the cost of sales increased nearly 12 times, from VND1.5 billion to VND17.6 billion. Business management costs also increased by 24%, recorded at VND51 billion. These figures have significantly affected the gross profit of VND68 billion that the enterprise earned during the period.
The driving force for Taseco Land's impressive profit growth is financial activities. In the last quarter, the enterprise brought in VND258 billion in revenue, nearly 14 times higher than the same period last year. Meanwhile, although interest pressure caused financial costs to increase sharply, this item was still controlled within a reasonable threshold of VND36 billion, the lowest among all types of expenses.
Another positive signal is that Taseco Land recorded VND17 million from an associated company. Although the figure is modest, it has completely improved compared to the loss of more than VND100 million in the same period last year.
Where does the driving force come from?
In the first 9 months of the year, Taseco Land's net revenue reached VND1,249 billion, up 82% over the same period. The biggest contributor to the above results was real estate transfer activities with a growth rate of 163%, bringing in VND744 billion.
Financial revenue increased dramatically when recording VND249 billion in profit from transferring subsidiaries. Comparing with the financial reports of the first and second quarters, it can be seen that this was the profit generated in the third quarter, which was also the main factor driving the impressive growth. This profit came from the transaction of transferring all shares of TAH Investment Joint Stock Company, which was carried out in August. This is the investor of the Office Complex project combined with Trade and Services at lot B2CC4 in the Starlake Urban Area.
Regarding this transaction, Vietcombank Securities (VCBS) also forecast that Taseco Land could record more than VND222 billion in financial revenue. Thus, the actual results exceeded VCBS's forecast.
In the context of the difficult real estate market, project transfer activities have helped Taseco Land generate a large source of revenue. At the end of the first 9 months of the year, this real estate company reported a profit after tax of VND202 billion, an increase of 7.6 times over the same period.
On the other hand, restructuring assets through transfer activities also created conditions for Taseco Land to implement new projects. As of September 30, 2024, the total assets of this real estate company reached VND9,426 billion, down 5% compared to the beginning of the year. Of which, inventories accounted for the largest proportion at 53%, recorded at VND4,964 billion. Compared to the beginning of the year, this item increased by 29%, mainly due to the arising of unfinished production and business costs at new real estate projects, including: High-rise housing project on plot A3/CT2 in Viet Hung, Long Bien, Hanoi (VND871 billion), Southeast Housing Group project on To Huu street (VND320 billion), New urban area project in the South of Duy Tien town administrative center, Ha Nam (VND39 billion).
Long-term unfinished assets reached VND1,025 billion, down 37%, mainly due to no longer recording unfinished basic construction costs at the B2CC4 Starlake Urban Area project. Notably, as of September 30, 2024, Taseco Land is still holding VND533 billion in deposits from the party that will receive a part of the Starlake project through the transfer of the target company.
Taseco Land may earn about VND1,200 billion from transfer activities
According to VCBS's report, in addition to the B2CC4 project, Taseco Land also transferred the Landmark 55 project at lot B3 CC2 Starlake Urban Area.
This is a 23,600 m2 project, including two land lots to build an office building (13,600 m2) and a hotel building (10,000 m2). Of which, the office block has been signed by Taseco Land to transfer to Mapple Tree, the transaction is expected to be completed in 2025, helping to record about VND560 billion in financial revenue. Taseco Land is also actively looking for partners to transfer the hotel block with an expected profit of over VND500 billion.
Thus, the transfer of the above land lots will contribute more than VND1,200 billion in profit to Taseco Land in the period of 2024 - 2026 and is an important source of money for the enterprise to invest in key urban and industrial park projects.
In the coming time, Taseco Land will begin to hand over the Central Riverside project (Thanh Hoa). With a scale of 495 townhouses, villas and a good selling price (about VND55 - 60 million/m2), Central Riverside is expected to bring in more than VND4,500 billion in revenue and is an important source of contribution to Taseco Land's business results in the next few years.
N.Nga
Source: VITIC/Tinnhanhchungkhoan