A construction site of Phat Dat Real Estate Development Joint Stock Company (PDR). (Photo: VNA) Phat Dat Real Estate Development Joint Stock Company (PDR)reported net revenue of 14.6 billion VND (622,600 USD) in the last three monthsof 2022, a sharp decrease compared to the 1.29 trillion VND recorded in thefourth quarter of 2021.
The company suffered an after-tax loss of 229.4 billion VND in Q4 of2022, while in the same period in 2021, it reported a net profit of 751.4billion VND. This was considered Phat Dat's "failure" quarter as thecompany reported a loss for the first time since it announced business results.
Dat Xanh Group Joint Stock Company (DXG) reported a loss of 460billion VND in the last quarter of 2022. During the period, the company's netrevenue reached 984.3 billion VND, down 56.6% year-on-year. In which, sales ofapartments and land plots reached 400.2 billion VND; real estate brokerage servicesreached 394.8 billion VND, down 68.8% and 55.9%, respectively, over 2021.
In the fourth quarter of 2022, LDG Investment Joint Stock Company(LDG) reported an after-tax loss of 38.88 billion VND and its revenue decreasedby 83.7% year-on-year due to high costs.
Although no loss was reported, No Va Land Investment GroupCorporation (NVL) announced its business results in the fourth quarter of 2022with net revenue of only 3.24 trillion VND, down 29% over the same period of2021. Accordingly, profit after tax in the period only reached 239.4 billionVND, down 73.5% year-on-year.
For the whole year, this real estate group recorded nearly 11.15trillion VND of consolidated revenue, down 25% year-on-year. Profit before taxdecreased by 19% to 4.11 trillion VND and profit after tax decreased by 34% tomore than 2.29 trillion VND. Notably, Novaland's inventory amounted to nearly 135trillion VND.
Nam Long Investment Joint Stock Company (NLG) announced businessresults with a net profit in the fourth quarter of 2022, down 23.3% over thesame period, at 589.7 billion VND. Compared to other businesses in theindustry, this figure shows the company was least affected in the fourthquarter of 2022.
Specifically, net revenue reached 1.63 trillion VND, down 63.1%over 2021. Meanwhile, financial revenue increased 5.4 times, reaching 306.9billion VND. However, selling and administrative expenses of the enterprisereached 186.2 billion VND and 199.1 billion VND, both down 51% and 10.3%respectively over the same period last year.
The forecast is still poor
The decline of real estate stocks is attributed to the lack ofcorporate cash flow, caused by the tightening of the bond market and bankcredit room.
In the latest report, VNDirect Securities is not optimistic aboutthe recovery of residential real estate in the short term because the realestate industry is facing three big challenges. That is, investors facedifficulties in debt restructuring due to tightening bank loans to real estateand strict supervision in the issuance of corporate bonds. In addition, risinginterest rates weaken demand for houses.
"Investors should focus on businesses with healthy financialstructures and solid cash flow from previous sales," VNDirect's reportsaid.
KB Securities (KBSV) recently forecast that the real estate marketin 2023 will still face many difficulties in the context that home loaninterest rates are expected to continue to increase and deposit rates willincrease, affecting homebuyers' borrowing needs.
Legal issues often take a long time and there are many risks thatcan slow down the process of approving and granting project constructionpermits. Realty investors also face more difficulties in accessing capital dueto restricted bank loans to the real estate sector and the unstable bondmarket.
“Real estate stocks have plummeted, reflecting the negativesituation about the real estate market. The short-term outlook for these stocksis still unclear,” KBSV noted.
Similarly, in the recently released 2023 strategy report, VietDragon Securities (VDSC) said that the country's real estate industry in 2023will generally still face many challenges in the context of interest ratesrising at a high level.
However, from a positive perspective, Ngo Minh Duc, CEO of LCTVInvestment said that when interest rates go down in the second half of 2023,the real estate market will warm up along with benefiting from infrastructureas the 3,000-km North-South expressway is open to traffic within the next 2-3years./.
VNA
