Vinhomes posts 52 percent surge in profits

By Hung Le   October 29, 2019 | 04:42 pm PT
Vinhomes posts 52 percent surge in profits
Residential apartment complex Royal City of Vingroup in Hanoi. Photo by Reuters/Kham.
Real estate giant Vinhomes earned VND6.14 trillion ($265 million) in after-tax profits in Q3, up 52 percent year-on-year.

The corporation's consolidated third-quarter revenues rose 58 percent to VND10.9 trillion ($471 million). Income from land and property conveyancing accounted for 92 percent of the corporation’s revenue structure, Vinhomes said in its consolidated Q3 report.

The surge in revenue and profit was due to Vinhomes delivering a larger number of units in two of its major projects in Hanoi in Q3, as well as increased realised earnings from pre-bookings in earlier quarters, the report said.

In the first nine months of this year, Vinhomes’ consolidated revenue grew 68 percent year-on-year to VND37.64 trillion ($1.63 billion), while post-tax profits rose 44 percent to VND17.35 trillion ($750 million).

Out of 26,800 new units launched in the first nine months, Vinhomes sold 21,100 units, an increase of 21 percent year-on-year. The total number of unbilled pre-bookings in this period rose 177 percent, to VND66.6 trillion ($2.88 billion), which included projects developed with parent company Vingroup.

At its annual general meeting in May, Vinhomes announced plans to raise its overall after-tax profit by 40 percent in 2019 to VND20.6 trillion ($890 million).

Newly-appointed Vinhomes chairwoman Nguyen Dieu Linh said the corporation will now look to expand to cities outside Hanoi and HCMC and begin leasing office space in its urban complexes.

Vinhomes operates 17 urban area projects in Hanoi, Ho Chi Minh City, Hai Phong City, northern Bac Ninh Province, and the two central provinces of Thanh Hoa and Ha Tinh.

It has the second largest market cap (VND288.06 trillion or $12.42 billion) on the Ho Chi Minh Stock Exchange, behind its parent company Vingroup (VIC), which is Vietnam's largest private conglomerate.

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