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Thu Duc Housing forecasts 2009 profit may fall 7 pct
Thu Duc Housing Development Joint Stock Co., a real estate firm backed by Citigroup Inc. and Deutsche Bank AG, forecast profit may drop 7 percent this year due to a drop in demand in the property market.
Revenue at the company, the second-biggest developer by sales on the Ho Chi Minh City bourse, may drop 9.3 percent to VND550 billion (US$31.5 million), while net income may be around VND185 billion, Financial Director Nguyen Khac Son said Tuesday by telephone.
“The economic downturn has frozen Vietnam’s property market,” chief executive officer Le Chi Hieu said in an interview from Ho Chi Minh City.
“The government may continue to lower the lending rate and it will help the market recover slightly by the third quarter.”
The company won approval from the Ministry of Planning and Investment on February 2 to invest $3 million in US properties following the subprime-mortgage market crisis, Hieu said in a statement on the company’s website.
The company, established in 2001, had total assets of VND1.4 trillion at the end of last year, according to a report dated January 20 posted on its website. Deutsche Bank holds 5.3 percent of its stock and Citigroup another 5.1 percent, according to data compiled by Bloomberg.
Bloomberg, thanhnien
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