CenLand AMG 2020 targets golden opportunities for industrial real estate

June 17, 2020 | 08:00
At its AGM 2020, CenLand approved its development orientation and business plans for the year, laying the groundwork for the company's revenue targets in the post-social distancing Vietnam.

Sharing about the company’s business plan for 2020 at the general annual shareholders’ meeting on June 12, CenLand chairman Nguyen Trung Vu said that the company continued to perfect its ecosystem, considering brokerage as the core business line. Besides this, CenLand co-operates closely with real estate developers to provide optimal solutions and take care of projects from pre-sales to post-sales phases.

Core value development

The strategic sales force of CenLand includes 2,000 sales executives and the CenHomes special sales team. In addition, as the largest real estate agency in Vietnam, CenLand has more than 700 connected agencies and approximately 15,000 authorised agents.

In 2020, CenLand goes on signing strategic co-operation agreements with major business partners after many years of interruption in real estate as well as other segments. Currently, over 176 CenLand projects are for sale, and the number of sales executives can double or even triple.

cenland amg 2020 targets golden opportunities for industrial real estate
“In the first five months of the year, more than 1,500 transactions have been wrapped up through the Cenhomes.vn platform," chairman Vu shared at CenLand's AGM 2020

In the coming time, the company will recruit key personnel and add more quality projects as well as improve several features to bring the best experience to customers on the Cenhomes.vn platform.

With such development orientation, CenLand has set big targets for 2020. As such, the company aims for total revenue of about VND2.4 trillion ($104 million), of which, revenue from real estate sales and brokerage is to be VND1.3 trillion ($57 million); from real estate transfer is to be VND1.1 trillion ($48 million); revenue from advertising and event organising services is to be VND42 billion ($1.8 million); and revenue from office leasing and other services is to be VND15 billion ($0.65 million).

If CenLand achieves a total revenue of VND2.4 trillion, the consolidated after-tax profit in 2020 would be VND400 billion ($17.3 million). As a result, the company would post earnings per share (EPS) of about VND5,000 ($0.21) apiece and expects dividends at 10 per cent.

From the business performance report and targets for 2020, CenLand is one of the most highly-rated real estate agencies on the stock market by investors, and two foreign and domestic funds are looking to buy strategic shares of CenLand.

According to the company's 2019 annual report, the total revenue was over VND2.3 trillion ($100 million), reaching 91 per cent of the year's plan. Meanwhile, before-tax profit was over VND490 billion ($21.3 million), reaching 87 per cent of the plan. Finally, after-tax profit was nearly VND393 billion ($17.1 million), up 22.7 per cent on-year.

Capturing new trends

At CenLand's AGM 2020 on June 12, the development orientation and business plan for the year were reported and approved. Accordingly, CenLand will focus on innovation and seizing new opportunities in the market.

cenland amg 2020 targets golden opportunities for industrial real estate
After Cen Cuckoo, CenLand will launch Cen Industrial Real Estate

Experts commented that the real estate market is moving more cautiously, setting new demands to promote the trend of sustainable development, meaning that developers like CenLand need new strategies to achieve breakthroughs.

After ongoing pandemic, manufacturers and governments are advised to restart the global supply chains, relocate their factories from China to other countries with lower costs and more stable environments.

Vietnam is likely to benefit from this trend thanks to the good control of the pandemic and favourable policies to support the economy and the market from the government.

Taking advantage of the golden opportunity of industrial real estate, CenLand is researching and developing a logistics real estate supply chain to catch the trends of shifting foreign direct investment into Vietnam and join the supply chain of the world economy.

In order to meet rental demand in the new context, CenLand is going to launch industrial real estate services for about 300 industrial parks all over the country. Earlier this May, CenLand debuted Cen Cuckoo – the first large-scale serviced apartment brand in Vietnam.

This model will be deployed in major cities and provinces with convenient locations, such as near airports, and with easy access to industrial zones and the city centres to satisfy the accommodation needs of foreign specialists.

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