At its recent annual general meeting, Novaland has presented an ambitious business plan for 2021 with an estimated revenue of over VND27 trillion ($1.17 billion) and profit of VND4.1 trillion ($177.26 million).
|At its annual general meeting, Novaland announced the business plan for 2021 with impressive numbers |
In addition, Novaland will accelerate the implementation of three key projects – NovaWorld Ho Tram (Ba Ria-Vung Tau), NovaWorld Phan Thiet (Binh Thuan), and Aqua City (Dong Nai) – to gain revenue and profit targets from 3 to 5 years earlier than originally planned. The total profit in 2021-2023 of the three mega projects is expected to be $2 billion.
The development of several key infrastructure projects is stepped up in the short term such as Long Thanh International Airport to be completed in 2025; Phan Thiet International Airport phase 1 (with a capacity of 2 million passengers per year); and Ho Chi Minh City-Dau Giay-Phan Thiet Expressway to be completed in 2022. The Dau Giay-Bao Loc Expressway and Bien Hoa-Vung Tau Expressway will also be developed soon. The representative of Novaland said that a series of key projects will be put into operation from 2023 to help ensure investment value for customers as well as meet the genuine demand of the community and the local economy.
Novaland will make efforts to exceed this year’s revenue and profit targets following the handover of many projects. At the same time, the group will consider transferring a number of large-scale projects with high expected profit margins in 2021.
In the first quarter of 2021, Novaland held a land bank of more than 5,400 hectares. The gross development value (GDV) of its land bank was estimated at nearly $45 billion. The representative of Novaland said after three years of implementing the large-scale projects in Dong Nai, Ba Ria-Vung Tau, and Binh Thuan, the group will consider expanding the land bank in some localities such as Lam Dong, Ninh Thuan, Khanh Hoa, Phu Yen, and Binh Dinh. Novaland aims to add 10,000ha by 2030, bringing the total land bank up to 15,000ha to prepare for the next stages of development.
“Wherever we invest, we will take into account the tourism potential, connectivity, and local support to turn a place into a new tourist destination, contributing to regional economic development. We are implementing the strategy in Binh Thuan with NovaWorld Phan Thiet, Centara Mirage Mui Ne Resort, PGA Golf, and Ba Ria-Vung Tau with NovaWorld HoTram,” said a Novaland representative.
According to its financial statement in the fiscal year 2020 audited by PwC, Novaland Group recorded many positive results with its charter capital reaching VND9.86 trillion ($427.62 million), equity capital VND31.93 trillion ($1.38 billion), total assets VND144.53 trillion ($6.27 billion) and net profit after-tax VND3.9 trillion ($169.39 million).
Novaland closed the April 26 trading session with a capitalisation of VND132.07 trillion ($5.7 billion), an increase of more than 100 per cent against last December. Novaland maintains its position as the second-largest listed residential real estate company in Vietnam.
|The 1,000ha NovaWorld Phan Thiet tourism and entertainment complex with second home products is attracting many investors |
In the coming time, Novaland and other NovaGroup members like Nova Service Group (retail, services, communities), Nova Consumer Group (agriculture, consumer goods), and other strategic partners will create a self-contained ecosystem with full amenities for Novaland projects. “This will be a strong complementary factor for Novaland projects, increasing our product value and enhancing the living environment for customers. Member companies under NovaGroup also boast separate and professional teams in each specific field to ensure the professionalism in capital investment and operation of Novaland,” the representative said.
Novaland also made two adjustments to the plan to increase equity capital. The group’s representative said that bondholders of international convertible bonds exercised their right to convert bonds into shares, creating constant changes to the number of common shares. Meanwhile, it took about one month to complete the conversion procedures. Thus, the group could not share the surplus in 2020 because the number of shares issued to existing shareholders will be greater than the number approved in the first resolution.
The Board of Directors has submitted the plan to the shareholders for the second time with the total number of increased shares in accordance with the regulations of the State Securities Commission of Vietnam. This way, the changes in charter capital will not be affected by the distribution of the bonus shares.
According to the second resolution, the surplus amount to be shared is more than VND3.8 trillion ($164.79 million). This means shareholders will be rewarded with a maximum of about 36 shares for every 100 shares, equivalent to 36 per cent.