Novaland showed surprising performance in its fourth quarter 2023 financial report. Although sales decreased, profits unexpectedly rose to the highest level in three years.
The real estate company owned by billionaire Bui Thanh Nhon reported a profit after tax of VND1.64 trillion, 13 times higher than the same period in 2022. However, the profit in 2023 was only VND 685 billion, much lower than VND 2. The previous year was 181 trillion.
As the real estate market remained quiet, the fact that Novaland posted strong profits in the fourth quarter of 2023, contributing to boosting its total profit in 2023, was a big surprise.
According to Novaland's financial report, revenue in the fourth quarter was VND2.031 trillion, lower than VND3.243 trillion in the same period last year.
Novaland CEO Dennis Ng Teck Yeow said financial investments led to higher profit in the fourth quarter.
The company's total revenue in 2023 was VND4,772 billion, much lower than VND11,151 billion in 2022. Most of the company's revenue comes from real estate transactions.
Novaland has delivered products to NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, Lakeview City, Saigon Royal, and other central real estate projects.
However, although profits from financing activities increased in 2023, selling costs decreased significantly.
Revenue from financial activities increased by 15% to VND5,741 billion, which was from business cooperation agreements and sales transactions.
Although Novaland's financial position has improved, there are still risks. It remains a major real estate company, with total assets reaching VND 241 trillion as of the end of 2023, a slight decrease of 6% from the previous year.
The value of inventory assets has reached VND138.6 trillion, including VND130 trillion worth of land banks and projects under construction. The rest are completed real estate products that we deliver to our customers.
By the end of 2023, Novaland owed VND57.7 trillion in loans, a decrease of VND7 trillion compared to the end of 2022. The outstanding amount of bonds decreased by VND6 trillion to VND38.6 trillion, and the balance of bank loans was VND9.4 trillion.
In the fourth quarter of 2023, Novaland continued to prepare for its financial restructuring. In mid-December 2023, Novaland announced an announcement regarding the restructuring of its international convertible debt package worth $300 million, helping to alleviate financial pressure on the company.
News about Vinhomes, owned by dollar billionaire Pham Nhat Vuong, also surprised investors. The real estate agent reported that his profit after tax was VND 33.3 trillion, an increase of 14% year-on-year.
Vinhomes reported a net consolidated revenue of VND121.4 trillion, an increase of 49% compared to 2022, as a result of the delivery of 9,800 real estate products belonging to Vinhomes Ocean Park 2 and 3.
The real estate company also saw total assets increase by 24% to VND447 trillion and shareholder equity by 23% to VND182 trillion as of the end of 2023.
On the other hand, the performance of most other real estate companies is sluggish. Cai Hoan Land reported a profit of VND-44 billion from its core business real estate in the fourth quarter of 2023. However, the company did not suffer any losses last year thanks to his VND 7 billion profit earned from investment items.
In the fourth quarter of 2023, Khai Hoang Land's net revenue decreased by 95% compared to the same period in 2022 to VND31 billion. Revenues from real estate brokerage services decreased significantly, impacting Cai Hoan's performance. Income from the transfer of real estate contracts decreased by 99% to VND1.3 billion.
In 2023, Kai Hoan's sales decreased by 76% to VND330 billion, and its profit after tax decreased by 72% to VND124 billion, the lowest profit level in the past three years.
Cai Hoan's total assets decreased slightly, with inventory decreasing by 54% to VND210 billion. However, the company has huge accounts receivable of VND 6 trillion.
Cen Land (CRE) made a profit again in Q4 2023, but its profit was only VND 1 billion.
Manha
