AsemconnectVietnam - With the transfer of real estate at The Terra - Bac Giang project and the initial restructuring of operations bringing positive results to Van Phu – Invest Investment Joint Stock Company (stock code: VPI), the company recorded VND109.9 billion in after-tax profit in Q3/2024, up 239% over the same period last year.

Van Phu – Invest leaders said that along with the economic recovery, the real estate market in recent months has had many more positive changes, under the impact of new laws. Specifically, data from management agencies and a number of consulting and brokerage units show that the market has shown a reversal point when liquidity has improved and interest in many segments has recovered.
For example, data from Batdongsan shows that the number of searches for land nationwide in the third quarter increased by 49%, private houses increased by 25%, apartments and villas increased by 24% and 22% respectively compared to the same period last year.
Not only is demand improving, real estate prices are also on the rise as products such as land, private houses, and apartments in Hanoi and some northern provinces have seen a wave of local price increases.
With the above context, Van Phu - Invest's business situation also showed many positive signs with revenue reaching VND854.6 billion in the third quarter of 2024 - an increase of 217% over the same period last year, due to recording real estate transfer revenue at The Terra - Bac Giang project. This is a key project with a scale of 45,059 m2 with more than 100 villas, townhouses and a 28-storey twin tower. In addition, the Oakwood Residence Hanoi project still brings steady revenue to the business.
In addition to promoting sales activities, Van Phu - Invest has also restructured its operations and reduced costs in recent years, in the context of the domestic economy and real estate market being affected by fluctuations in the world economy. These efforts have brought initial results, with the company's pre-tax and after-tax profits in the third quarter of 2024 reaching VND123.7 billion and VND109.9 billion, respectively, up 142% and 239% over the same period last year.
Accumulated in the first 9 months of 2024, the company recorded revenue and profit after tax at VND1,148.1 billion and VND205.6 billion, respectively, thereby achieving 41% of the revenue target and 59% of the profit target for the whole year, approved by shareholders attending the annual General Meeting of Shareholders in April 2024.
According to the leaders of Van Phu - Invest, part of the above results came from the fact that the real estate market has shown signs of recovery in recent months, thanks to support from the macro economy, interest rates maintained at low levels; exchange rates gradually softened. In addition, market sentiment is also more positive when three sets of laws, including Housing, Land, and Real Estate Business, were applied early, receiving the welcome of buyers, sellers, trading floors and investors.
“The new law is expected to increase transparency, improve supply and open up new preferential and support policies to promote market growth,” Van Phu - Invest leaders expect.
Based on current results, Van Phu - Invest leaders also expect the company's business results to continue to improve in the coming quarters thanks to cash flow from ongoing projects, including: Vlasta - Thuy Nguyen, The Terra - Bac Giang. In particular, the Vlasta - Thuy Nguyen project is considered a key project in the late 2024 and 2025. The company is actively completing procedures for the project to prepare for sale in the coming time.
In addition, the company will continue to accelerate the recovery of some loan debts to maintain a stable cash flow and implement new projects on the existing clean land fund.
In terms of asset size, Van Phu - Invest's total assets were VND11,308.6 billion as of September 30, 2024, down 9.75% compared to the beginning of the year, mainly due to a decrease in the value of inventories and long-term unfinished assets.
In terms of debt structure, the enterprise continues to maintain the orientation of reducing short-term loans and increasing long-term loans, with the value of these two items at VND1,884.2 billion and VND 3,808.4 billion as of September 30, 2024, down 10.09% and up 16.72% respectively compared to the beginning of the year.
N.Nga
Source: VITIC/Tinnhanhchungkhoan