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Hoang Anh Gia Lai raises profit target on stimulus
Hoang Anh Gia Lai Joint-Stock Company (HAG) Vietnam’s biggest listed property company, raised its full-year profit target by 22 percent after posting “positive” first-half earnings.
Pretax profit will rise to VND1.4 trillion (US$78.6 million) for the year ending December 31, compared with an earlier April target of VND1.15 trillion, Deputy General Director Vo Truong Son said Tuesday in a telephone interview from the Central Highlands province of Gia Lai where the company is based.
The furniture and property company’s pretax profit reached VND781 billion in the first six months, equivalent to 68 percent of its previous full-year target, Son said. On June 23, it estimated first-half profit at VND762 billion.
The government’s $8 billion stimulus package buoyed the property market, said Son. Hoang Anh Gia Lai “took this chance to reduce prices for its apartment projects and that helped boost our sales,” he said.
The company found buyers for about 60 percent of apartments in two major projects in Ho Chi Minh City, Phu Hoang Anh and Riverview, Son said. Its target is to sell 576 Riverview apartments and 802 units in Phu Hoang Anh, according to Son.
Vietnam’s real-estate market has been revitalized this year, buoyed by more active credit markets and lower raw material costs that have boosted construction, the UK-listed Vietnam Property Fund Ltd. said Monday.
Banks’ total outstanding loans rose 17.5 percent in the six months ended June compared with a year earlier, the central bank said in a statement on its website on July 7.
Hoang Anh Gia Lai, the sixth-biggest company on the Ho Chi Minh Stock Exchange, also raised its annual sales forecast to VND3.66 trillion, from a previous target of VND3.13 trillion, according to Son. Revenue in the first half was about VND2.1 trillion, Son said.
He didn’t provide any comparative figures.
The company Tuesday fell 1.4 percent to close at VND71,000 on the Ho Chi Minh Stock Exchange.
thanhnien, bloomberg
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