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Hodeco (HDC): Profit decreased by 67.9% to VND31.49 billion in Q1/2023 

 Wednesday, May 24,2023

AsemconnectVietnam - Ba Ria - Vung Tau House Development Joint Stock Company (Hodeco, code HDC – HoSE) reported business decline in the first quarter of 2023 due to the general difficulties of the real estate market.

Profit plunges in the first quarter of 2023
Hodeco has just announced its financial report for the first quarter of 2023. In which, the Company recorded revenue of VND176.76 billion, down 55.8% over the same period and profit after tax recorded at VND31.49 billion, down 67.9% over the same period last year.
During the period, gross profit decreased by 50.3% over the same period, corresponding to a decrease of VND80.24 billion, to VND79.26 billion; financial expenses increased by 26.4%, corresponding to an increase of VND4.5 billion, to VND21.54 billion; selling and administrative expenses decreased by 10.6%, corresponding to a decrease of VND1.69 billion, to VND14.26 billion and other activities did not change significantly.
Thus, the first quarter profit of 2023 plunged mainly due to a sharp drop in gross profit and high financial costs.
Explaining the plunge in profit, Hodeco said that due to the general difficulties of the real estate market, it affected the Company's sales in the first quarter of 2023.
It is known that in 2023, Hodeco set a business plan with revenue of VND1,770 billion, up 13.6% over the same period last year and expected profit after tax of VND488 billion, up 17.6% compared to actual present in 2022.
Thus, with a profit of only VND31.49 billion, by the end of the first quarter of 2023, Hodeco only completed 6.5% of the plan.
Negative cash flow and provision for investment in HUB shares
In addition to plummeting business, in the first quarter of 2023, Hodeco's main operating cash flow also recorded a negative VND23.5 billion compared to the same period of negative VND251.4 billion. In addition, investment cash flow is positive VND9.99 billion and financial cash flow is positive VND14.15 billion.
As of March 31, 2023, Hodeco's total assets increased by 1.9% compared to the beginning of the year, to VND4,505.5 billion. In which, the main assets are short-term receivables recorded at VND1,132.9 billion, accounting for 25.1% of total assets; inventories recorded VND1,130,6 billion, accounting for 25.1% of total assets; long-term unfinished assets recorded VND1,082.83 billion, accounting for 24% of total assets; Long-term financial investment recorded VND683.3 billion, accounting for 15.2% of total assets and other items.
During the period, assets fluctuated mainly, short-term receivables increased by 4.1% compared to the beginning of the year, corresponding to an increase of VND44.2 billion, to VND1,132.9 billion; inventories increased by 3.6% compared to the beginning of the year, corresponding to an increase of VND39.1 billion, to VND1,130.6 billion...
Regarding the securities portfolio, notably, the Company recorded an investment of VND107.2 billion in HUB shares, making provision for VND44.09 billion, equivalent to a temporary loss of 41.1% of the investment value.
Notably, by the end of the first quarter of 2023, total short-term and long-term debt increased by VND14.2 billion compared to the beginning of the year, to VND1,704.5 billion and accounted for 37.8% of total capital.
In debt, the Company said that at the beginning of the year, the outstanding value of bonds was VND28.7 billion, but by March 31, 2023, it was up to VND95.8 billion. Reportedly, the bond money is used to invest in The Light City project in Ward 12, Vung Tau City.
N.Nga
Source: VITIC/Tinnhanhchungkhoan
 

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