07:53 (GMT +7) - Tuesday 06/12/2016

Banking & Finance

Vingroup 1H profit at 98% of 2016 target

Released at: 09:16, 04/08/2016

Vingroup 1H profit at 98% of 2016 target

Photo: Duc Anh

Impressive first half for group, which also plans a share issuance in the third quarter.

by Duy Anh-Hong Nhung

Vietnam’s largest property developer, Vingroup, recorded impressive financial results in the first half of the year and plans to issue shares to existing shareholders.

After-tax profit stood at VND2.9 trillion ($130 million), equal to 98 per cent of the target for the year as a whole, its 2016 second quarter report revealed.

Second quarter revenue from Vinhomes, Vincom Retail, Vinpearl, Vinpearl Land, Vinschool, Vinmec, Vinmart and Vinpro all increased year-on-year.

Revenue from real estate sales totaled VND4.5 trillion ($201.7 million) in the quarter, up 31 per cent year-on-year. Shopping malls and offices rentals brought in VND735 billion ($33 million), up 39 per cent, while revenue from hospitality, tourism and entertainment reached VND1.1 trillion ($49 million), a 59 per cent increase compared to the second quarter of last year.

Education (Vinschool) brought in VND147 billion ($6.6 million), up 58 per cent, and hospitals (Vinmec) VND263 billion ($11.8 million), up 53 per cent, while revenue from supermarkets and convenience stores (Vinmart) increased a substantial 226 per cent to stand at VND2.5 trillion ($112 million).

Vingroup’s total net revenue for the first half was VND2.42 trillion ($108.5 million), double the result in the first half of last year and equal to 54 per cent of the 2016 target.

Vingroup, 1H 2016 revenue

A representative from Vingroup’s Public Relations Department confirmed with VET that it plans to raise charter capital by issuing an additional 484.5 million shares to existing shareholders.

A proposal was made to the Board of Directors on July 29, with shares to be issued at a ratio of 1,000:225. An additional 484.5 million shares are expected to be issued, equal to VND4.8 trillion ($215.2 million).

The bonus share issue to shareholders is due to a share premium of VND7.3 trillion ($327.3 million) in financial statements as at the end of March 2016. There are no limits on the sale of these additional shares.

The share issuance is expected to take place during the third quarter, bringing the total to 2.6 billion shares. Charter capital will then stand at VND26.4 trillion ($1.18 billion).

As at the end of June, Vingroup’s total assets stood at VND159 trillion ($7.1 billion) and total equity VND44.6 trillion ($2 billion), up VND13.8 trillion ($619 million) and VND7 trillion ($314 million), respectively, compared to the end of 2015.

In April Vingroup established the Vinmec Nha Trang International General Hospital with total investment of VND630 billion ($28.2 million). It has also invested $50 million to develop human resources at Vinmec over the next five years.

In May, nearly 150 villas at Vinpearl Nha Trang Resort were officially put up for sale. In June the group held a signing ceremony with 250 Vietnamese enterprises attending its “Follow, Support and Promote Domestic Manufacturing” program. At the same time Vingroup also launched its organic vegetables, produced using modern Israeli technology and solely distributed at Vinmart and Vinmart+ convenience stores in the north of Vietnam.

  • TAGS
  • Vingroup
  • Vinhomes Riversides
  • Vinpearl
  • Vinmec
  • Vinmart

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