In the morning of 26/4, BR-VT Housing Development JSC (HOSE: HDC) has held the General Assembly of Shareholders in 2017 with the participation of 173 shareholders, representing more than 81% of total number of voting shares.
Report on the progress of project in 2016, MR. Doan HuuThuan, Chairman of the Board said, in 2016 despite the rally of market real estate, but mainly strong growth in major cities in HCMC and Hanoi, while in other provinces, the recovery of the real estate market is still slow.
As a result, Hodeco has a total production value of VND 590 bn, exceeding 7% of the plan; Net revenue came to VND480 bn, 6% lower than the full year target. The reason for the slight decrease in sales over the same period was due to competitive pressure from DIC, Hung Thinh, Son Thinh, etc., and the VND 30 trillion disbursement in early June, is also somewhat influenced the company.
Nevertheless, Hodeco still achieved pre-tax profit of VND67.12 bn, up more than 10% compared to its FY2015 performance and slightly above the target set for 2016. After-tax profit belongs to parent company increased 22% compared to 2015, reaching VND 58 bn. With that result, the Board of Directors of Hodeco proposes the General Meeting of Shareholders to approve the cash dividend payment of 10%/ face value for 2016.
On the implementation of the projects, Hodeco completed construction of block A of the 18-storey apartment building at 199 Nam Ky Khoi Nghia and handed over the house to customers in 2015 with seven units left, transferring ownership for 310/ 320 units.
During the year, Hodeco also implemented the assignment of housing rights for other projects, such as basically issuing house ownership certificates for the Hillside II project in Ward 10, completing the certificate of home ownership of the 18-storey apartment building in Phu My and other projects are underway.
Regarding the relocation of the first 18-storey residential complex with the first supermarket in Phu My urban area with the size of 342 apartments to social housing, the company has completed handover procedures and has been paid in advance VND 50 bn in 2016, the remaining of more than VND 4 bn will be paid in 2017.
The ground floor of the first phase of Phu My urban area project is also in business. During the year, the company sold 62 lots of townhouses, villas and 2 large plots of land bringing in considerable revenue.
For the Ngoc Tuoc II Hill Villas, the Company has promoted the coordination with the provincial People’s Committee, the People’s Committee of Vung Tau City and the People’s Committee of Ward 8 to handle land encroachers. The progress is slow so the business is much affected.
During the year, the company also completed the investment and construction of Binh An Ward, Ward 10 and sold about 60% of the apartment.
In addition, other projects in the Company’s portfolio are also being prepared so that it can be deployed at the right time.
The project of housing west of road 3/2, ward 11 – Vung Tau City with an area of about 6.3 ha has completed the construction of the infrastructure: leveling up the land area of the company, complete the roadmap Traffic system.
In addition, Hodeco has asked the Vung Tau City People’s Committee to conduct a survey of the land price to carry out site clearance and to agree with land users on projects such as Phuoc Thang urban area, Hai Dang House in Ward 12 and Ngoc Tuoc P.8. Vung Tau City and the Company are also stepping up the agreement on transfer of land use rights in the above projects.
Particularly for housing projects in Hai Dang, the company has been transferred about 6 ha, increasing the area of land transferred to about 25 hectares.
On the divestment of Go Sao project – Ho Chi Minh City, Hodeco Chairman said the reason for prolonged time due to procedural obstacles. Up to this point, the procedure for the basic transfer has been completed, expected transfer will help Hodecoto recover about VND 120 bn, increasing investment budget in 2017.
Profit is planned to grow 20% for 2017
In the year 2017, Hodeco also assessed that the business environment is becoming more competitive as a series of government directives on continuing to remove difficulties for enterprises are being implemented. In addition, the characteristics of the real estate market in Vung Tau is usually 1-2 years slower than in big cities.
The brand value has been established in the field of real estate investment in Vung Tau with the shift of the focus of economic development to service and tourism in the locality. The Board of Directors of Hodeco Board of Shareholders proposes to set up a revenue of VND 605 bn, an increase of 26% compared to that in 2016; Profit before tax is VND 80 bn, up 20% over 2016. Dividend is minimum 10% / face value.
As for the specific plan, Hodeco expects that in 2017, besides continuing to exploit its existing projects, Hodeco plans to complete preparations for the investment in a 20-storey tourist apartment and hotel project with brand FUSION SUIT at 2 Truong Cong Dinh to start construction in the first quarter or quarter II / 2017. The company will also prepare for the ThiSach apartment project and Thong Nhat apartment building to start construction at the right time.
In addition, Hodeco will also promote ground clearance to invest in infrastructure construction phase 02 in the project area villas Ngoc Tuoc II, continue to negotiate with people, land reclamation and compensation, other preparatory work to implement the 49 hectare Hai Lien housing project and Phuoc Thang urban area in Ward 12,Vung Tau
Besides, Hodeco will also focus on bidding, construction and installation works in the area, joining with some partners in applying for permission to invest in a number of BT projects, for the time being Thong Nhat Street.
Hodeco owns more than VND 950 bn of inventories and real estate investment, accounting for about 67% of existing assets, the value of which has not been revalued since equitization from 2001 to present.
Hodeco also said that this year, it will focus on restructuring its portfolio in the direction of building better cash flow, higher investment efficiency. The company will consider raising capital as needed. However, Hodeco’s policy is to use the loan flexibly but without causing liquidity difficulties, ensuring financial security for the Company, partners, banks …
In the first quarter of this year, Hodeco reported net sales of VND70.7 bn, down nearly 43.7% PoP. However, consolidated revenue in this period mainly came from the project of Phu My new urban area. This is the project where HDC has accumulated land fund with low cost and high profit margin when put into business. Hence, despite the decrease in sales, the profit after tax of HDC’s parent company increased by 275.5% on the same last year period, reached VND12 bn.
