Industrial park real estate wins big deal

Real estate enterprises in industrial parks are having a vibrant period, many companies reported sudden increase in profits, stocks continued to flourish.

Nam Tan Uyen Industrial Park Joint Stock Company (NTC) said that in the third quarter of 2019, the company achieved 53.8 billion dong in revenue, up 55% over the same period last year, profit reached 45.4 billion dong.

In the first 9 months, the company saw 140.5 billion dong revenue, increasing 16.3% YoY; profit reached nearly 176 billion, increasing 21.9% over the same period.

This year, the company targets a total revenue of 303.5 billion dong, after tax profit of 130.1 billion dong. As such, NTC has fulfilled 46% of its revenue plan and exceeded 35% of the year's profit plan after 9 months.

By the end of the third quarter, the Company had cash and cash equivalents amounting to VND 1,278 billion, accounting for 37% of total assets.

Along with positive industry prospect and financial data, NTC stock continued to flourish. From VND 70,000/share at the beginning of 2019, NTC's market price reached VND 168,000/share in the session on October 25, equivalent to an increase of 238%.

Industrial Urban Development Joint Stock Company No. 2 (D2D) has just released its third quarter financial report with very positive results.

Specifically, during the period, the Company's net revenue reached VND 275 billion, 7 times higher than the same period in 2018, mainly from the growth of industrial park infrastructure rental revenue and Loc Loc residential project revenue. Profit after tax reached VND 155 billion, 24.5 times higher than the same period.

In 9 months, D2D's revenue is 398 billion dong, 2.4 times higher than the same period in 2018; profit after tax 238.4 billion, 5.1 times higher.

D2D has the highest profit ever. Comparing to the whole year business plan with the revenue target of 336.3 billion dong, EAT is 89.3 billion dong The company has exceeded 18% revenue target and exceeded 167% profit target.

On the stock market, D2D shares also belong to the galloping group, currently trading around VND 85,900/share, nearly 3 times higher than the beginning of the year.

Viglacera Corporation (VGC) has just announced the turnover of VND 2,250 billion, profit after tax of VND 342 billion achieved in the third quarter. Compared to the same period last year, Viglacera had a profit growth of 61%.

In 9 months, Viglacera's revenue and profit are estimated at 7,090 billion dong and 855 billion dong, increasing by 11% and 31% YoY respectively.

According to Saigon Securities Incorporation (SSI), the strong growth of Viglacera continues thanks to the contribution of industrial park leasing. Profit from this segment reached VND 512 billion in 9 months, up 54% over the same period and accounted for 60% of the total profit before tax of the Company. In the third quarter, the Company leased 50 hectares of industrial land.

New tenants are mainly from Korea, Taiwan and Japan. In which, some main tenants in this quarter include Qisda Corporation, Kanglonda, Foxconn...

In 9 months, the Company leased approximately 151 hectares of new industrial parks, compared to only 100 hectares in 2018. The rental price remained stable throughout 2018 and the first 6 months of 2019, but adjusted to increase 5 - 7% in the second half of this year.

Due to strong growth in industrial park demand, Viglacera has released an additional 300 hectares in the first 9 months of the year, and is expected to add another 200 hectares in the fourth quarter. The company hopes that the industrial park land lease will maintain the current pace in 2020.

SSI estimates that Viglacera's revenue and profit before tax in 2019 will be VND 10,556 billion (increasing 17.6%) and VND 1,091 billion (increasing 29.5%).

The company will lease a total of 201 hectares in 2019. Prospects for 2020, the industrial zone continues to grow rapidly with a new leasing area of 234 hectares, helping the company achieve 7% growth in sales revenue and 16% for profit.

Currently, Saigon Investment Joint Stock Company (VRG), Tin Nghia Industrial Park Development Joint Stock Company, Kinh Bac Urban Development Joint Stock Corporation (KBC)... have not reported 9 months of 2019 but also belongs to the group with prospect of revenue and profit growth.

Along with the shift of investment wave from China is happening strongly and Vietnam is one of the destinations of this capital flow is the excitement of the industrial real estate market. This market is attracting more "rookies".

Recently, Tien Bo Group has officially announced an investment of VND 1,500 billion to invest in an infrastructure project of industrial park in Thai Nguyen with an area of 180 hectares.

According to Hai Minh