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Banking & Finance

FLCHomes expects to list at VND35,000

Released at: 15:45, 19/11/2019

FLCHomes expects to list at VND35,000

Photo: Ngoc Lan

$1.5 price at December listing reasonable according to analysts.

by Ngoc Lan

FLCHomes is expected to be listed at VND35,000 ($1.5) per share in December, a company representative told a launch and introduction ceremony of investment opportunities for its stock code, FHH, on November 19 in Hanoi.

This price is considered by many economists and analysts to be reasonable given the prospects for the real estate industry in general and the company in particular.

FLCHomes’ core business is real estate as a project investor, project distributor, and project operator.

In its plan for the next five years, it expects average annual growth in revenue and profit after tax of 46 per cent and 60 per cent, respectively. Equity is expected to increase from over VND4 trillion in 2019 ($172.7 million) to over VND10 trillion ($432 million) in 2024.

Total revenue in 2020 is expected to reach VND5 trillion ($216 million), three-fold higher than in 2019, and profit after tax is to reach nearly VND1 trillion ($43.2 million), a four-fold increase. In particular, revenue from investment in real estate projects in 2020 is expected to reach over VND2.8 trillion ($120.7 million), contributing nearly 60 per cent of total revenue.

Ms. Huong Tran Kieu Dung, Chairwoman of FLCHomes, said it is supported on many platforms and business development and distribution projects of the FLC Group. “FLCHomes’ investment and distribution projects have therefore reached more than 300 projects in most cities and provinces,” she added. “These funds can meet the supply and operational capacity of FLCHomes until 2030.”

Commenting on the launch, economist Tran Dinh Thien said the business is supported by favorable objective conditions such as a stable macroeconomy, good economic growth, and determination by the government in reform and its orientation to considering private enterprises an important driving force in the economy.

Senior banking expert Nguyen Tri Hieu said that FLCHomes lists on the stock market in the context of a restructuring economy and a healthier market. “The development of FLCHomes is in line with the growth of the FLC Group and its specialized brands,” he added.

At the ceremony, Mr. Trinh Van Quyet, Chairman of the FLC Group, revealed that subsidiary Bamboo Airways also plans to list at VND60,000 ($2.5) per share in 2020 with the stock code BAV. “Prices of FHH and BAV shares will reach three digits, over VND100,000 ($4.3) each, in 2020,” he declared. “This is my surest promise for the Group’s development in 2020.”

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