Although the real estate market has not really improved, it has also recorded a significant recovery. Enterprises in the industry have also begun to record better business results after the "bottom-to-b bottom" period.
However, many real estate businesses still record large loans, unpaid due bond debt... This is greatly affecting capital mobilization plans.
For example, in the fourth quarter of 2024, the payables of An Gia Real Estate Investment and Development Joint Stock Company decreased by 39.2% to VND 3,898 billion, but most of them were still short-term debts (VND 3,210.8 billion). Total loan debt is at 1,417 billion VND, showing that An Gia is still under significant financial pressure. The debt/equity ratio is 0.45 times.
Recently, An Gia also announced the suspension of the plan to publicly offer shares to existing shareholders. According to the original plan, this company planned to issue more than 40.6 million shares, accounting for about 25% of the outstanding shares, at a price of VND 10,000 per unit.
It is expected that the mobilized capital will be used to pay bank debts and add to the charter capital of the subsidiary. However, An Gia has recently announced the suspension of this plan due to unfavorable market conditions, causing the issuance to not achieve the expected results and affecting shareholders' benefits.
The psychology of stock investors is also still highly vigilant with the real estate group. Therefore, just one information can affect stocks and cause them to fall into deep decline.
For example, Construction Development Investment Corporation (DIC Group, stock code: DIG) once planned to issue an additional 200 million shares at a price of VND15,000/share, expected to collect VND3,000 billion to implement a series of large projects in the final period of 2024. Of which, it is mainly allocated to a number of projects and is expected to be temporarily used to pay bond obligations.
However, immediately after the information was announced, DIG shares were strongly sold by shareholders on the exchange, causing market prices to fall sharply. After that, the enterprise had to announce a temporary suspension of the offering plan due to market disadvantages.
Similarly, on December 23, 2024, Dat Xanh Group announced that it had been granted a certificate of additional public offering of shares. The total number of registered for sale is more than 150 million shares, with a selling price of 120,000 VND/share. Since then, DXG shares have continuously decreased in price.
It can be seen that these decisions to stop selling stocks reflect the caution of businesses when the market is still full of risks, capital mobilization through securities channels of real estate businesses is becoming more difficult at the present time.
According to Fiin Group, 2024 is a disappointing year for residential real estate stocks when the prices of most stocks in the industry are almost flat or even down, due to cautious investment cash flow because the profit prospects of the industry are not clear. With improved business prospects, this is one of the industries with potential for price in 2025.
However, the main risk is still the legal dismantling progress, if this process takes place more slowly than expected, the project implementation and handover speed will be affected. Therefore, the increase of residential real estate stocks may be limited, especially in the first half of 2025.
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, also commented that in the stock market, there are many real estate stocks that are trading at low prices, but there are also certain risks because the real estate market has not fully recovered and returned to the growth cycle.
"On the other hand, these businesses are also having to deal with certain internal difficulties. Therefore, for investors, choosing to invest in real estate stocks at this stage needs to be determined based on many factors such as risk appetite, investment time...", Dr. Phuong stated his opinion.
