In the first half of 2020, how does Novaland grow?
tranthuy02 5-08-2020, 11:43

The financial statements for the first 6 months of Novaland show the steady growth of this Group.

Total consolidated revenue including revenue from sales and service provision, project transfer activities reached VND 4,361 billion. Profit before tax reached VND 1,487 billion and profit after tax reached VND 1,177 billion, up 12% and 48% respectively.

In addition, Novaland shares continue to fall into the sustainable development index (VNSI) basket in a recent review in July 2020.

Towards sustainable development goals

Novaland is a large listed company on Vietnam’s stock market.In the review period of July 2020, Novaland shares (Ticker: NVL) continued to be among the top 30 largest DNNY index indices on the stock market – VN30.

In addition, Novaland continues to fall into the VNSI basket of indicators, the sustainable development index. The VNSI index aims at: Identifying sustainable development standards for listed companies; assisting institutional and individual investors in identifying “green” businesses for investment; strengthening the trend of sustainable development of the whole economy; identify criteria for environmental, social and governance best practices; adding a new investment tool, contributing to the growth of stock market and the economy.

Strict financial control, maintain high liquidity

Sea view villa in the divergence Thetropicana, NovaWorld Ho Tram. (Image: Novaland)

As of June 30, 2020, the Group’s total assets reached VND 98,780 billion, an increase of nearly 10% compared to the end of 2019.

At Novaland, the group always implements strict financial controls, so that its liquidity is maintained at a high level, reflected by the current ratio of 3.52 times, equivalent to 2019 and 1.8 times higher than the period 2016-2018, the quick ratio was 0.8 times. Financial leverage ratio is stable, fully meeting commitments with domestic and foreign credit institutions.

In the first 6 months of 2020, only for capital raising activities, Novaland has received a total disbursement of 12,006 billion dong. Disbursements are used for M&A activities and project development investments.

In addition to project development based on the existing land fund, Novaland has always been proactive and actively implemented investment and divestment activities. In parallel with the investment activities to increase the land bank with potential for development and high price in the future, the divestment is implemented when the projects reach the expected profit rate.

Proceeds from project transfers will be reinvested in new projects with higher return, repayment of loans before maturity and securing capital for production and business activities to strengthen the foundation. Solid foundation for the growth of the group in the future.

Bridge between distribution agents and customers

From the second quarter of 2020, the Group has implemented a business strategy associated with distribution agents to promote and enhance the introduction of Novaland Real Estate products to a large number of customers and investors across the country. .

Distribution partners are seen as a bridge between Novaland and customers, through these partners, customers will have the opportunity to access Novaland’s high quality, sustainable profitable projects.

Aqua City smart eco-urban area at the eastern gateway of Ho Chi Minh City attracts a lot of attention. (Image: Novaland)

Taking a look at outstanding business activities in the second quarter of 2020, Novaland has organized many events to introduce the Aqua City project after the period of social separation.

Aqua City is well received by investors with an average absorption rate of townhouses, shops and villas up to 95% for each product launch to the market and that is the point. In the southern real estate market, there is a shortage of supply.

It is expected that in August this year, the group will launch a new subdivision of the Aqua City project, with modern tropical architecture style that promises to create a great attraction in the market.

In the resort real estate segment with the current leading trend of second home, Novaland has been strongly developing entertainment and tourism complexes, forming an attractive domestic and international tourist destination.

In June 2020, Novaland launched the Wonderland divergence under the NovaWorld Ho Tram Entertainment and Tourism Complex.

Wonderland has a scale including trade – service area; sea entertainment and recreation area; 4 star hotel complex managed and operated by international brands and over 270 second home marine products (detached villas, semi-detached villas, detached villas, commercial townhouses – coastal shophouse).

In addition, Novaland has also launched more than 100 seaside villas limited edition The Tropicana in the most luxurious location at the divergence The Tropicana, belonging to NovaWorld Ho Tram Tourism – Resort – Entertainment Complex.