Enterprises make big profits thanks to the market improvement
The real estate market last year fluctuated strongly, in which apartments were a bright spot. Selling prices have recovered and increased sharply in Hanoi and Ho Chi Minh City, helping businesses with good sources benefit greatly.
Nam Long Group (Code: NLG) had a "big win" year when revenue and profit grew strongly. Net revenue in the fourth quarter of 2024 reached VND 6,368 billion, 4 times higher than the same period last year. Profit after tax is about 1,327 billion VND, 2.7 times higher than the same period. This is the highest quarterly profit in the history of this business. Accumulated for the whole year, Nam Long has nearly VND 7,200 billion in revenue and about VND 1,382 billion in profit after tax, up 126% and 73%, respectively, and exceeding the profit plan for the whole year by 68%.
Khang Dien House (Code: K Human) recorded a breakthrough business results in the fourth quarter of 2024 with net revenue reaching VND 2,063 billion, 4.4 times higher than the same period last year. Most of the revenue comes from real estate transfers. Thanks to the start of accounting for revenue from projects handed over, after-tax profit in the last quarter of the year skyrocketed to nearly VND392 billion, 10 times higher than the same period in 2023, despite significant increases in financial costs and sales expenses. Accumulated for the whole year, the company achieved VND 3,295 billion in revenue, up 1.5 times compared to the previous year, while profit after tax reached VND 803 billion, up 10%.
Many businesses suffered heavy losses
While many businesses benefit from the increase in real estate prices, many units suffered losses due to poor liquidity, financial pressure and high interest costs. Many businesses are still struggling to restructure and seek cash flow to maintain operations.
Notably, Novaland (Code: NVL) has just experienced a record loss in 2024 despite strong growth in revenue. The company recorded revenue of VND9,079 billion in the year, up 90% over the same period last year. However, Novaland still net lost VND6,411 billion, while in the same period in 2023, it still made a profit of more than VND605 billion. Explaining this loss, the company said that it was largely due to the provisioning according to the semi-annual report period, because the auditing unit applied its own viewpoint regarding land rent and use payables, calculated according to the 2017 land price plan of the Lakeview City project (Thu Duc City, Ho Chi Minh City).
Thuduc House (Code: TDH) continues to face a difficult business year when reporting losses for the second consecutive year. In 2024, the enterprise recorded only 48.7 billion VND in revenue, down 59% compared to the previous year, while the after-tax loss was up to 288 billion VND, more than 4.5 times higher than the loss of 62.7 billion VND in 2023. In the fourth quarter of 2024 alone, TDH achieved net revenue of more than VND12 billion, down 65% over the same period last year. The after-tax loss in the quarter also increased significantly, up to VND284 billion, much higher than the loss of nearly VND36 billion in the same period in 2023.
Danh Khoi (Code: NRC) reported a loss again in 2024. In the fourth quarter of 2024 alone, the company recorded net revenue of only 1.3 billion VND, while the whole year's revenue reached more than 5 billion VND, although it increased by 11% compared to the previous year, it was still very low. Increasing financial pressure caused the NRC to record a loss after tax of VND 46.8 billion in the fourth quarter of 2024, in complete contrast to a profit of nearly VND 30 billion in the same period last year. In the whole year, the company reported a loss of 63 billion VND, while in 2023, it still made a profit of nearly 12 billion VND.
