The real estate market remains sluggish, and prolonged legal delays in projects have led to a sharp increase in inventory and accounts receivable for real estate businesses. This is one of the reasons why businesses are facing cash flow difficulties, with operating cash flow consistently in the negative.
Accordingly, at the Development Investment Construction Corporation (DIC Corp - code: DIG), consolidated net revenue in the second quarter of 2024 reached VND 821.2 billion, five times higher than the same period last year.
DIC Corp's interest expenses decreased sharply during the period, and it also recorded a reversal of financial expenses, but financial revenue also decreased significantly. As a result, the company reported a remarkable profit of VND 125 billion, compared to only VND 9 billion in the same period last year. This is also the highest profit level for the company in the last 10 quarters.
For the first six months of the year, DIC Corp recorded revenue 2.2 times higher than the same period last year, reaching 822 billion VND. However, due to a sharp decline in revenue from financial activities, after-tax profit was only nearly 4 billion VND, a 95% decrease compared to the first half of 2023.
Despite positive business performance in the second quarter, DIC Corp's financial picture reveals continued cash flow difficulties, with a negative operating cash flow of over VND 1,210 billion, a sharp increase compared to the negative VND 108.4 billion in the same period last year. Furthermore, the company's investment cash flow was negative VND 659 billion, while its financing cash flow was positive VND 1,162 billion, primarily driven by increased borrowing to offset the operating cash flow deficit.
Similarly, at Century Real Estate Joint Stock Company (Cenland - code: CRE), consolidated net revenue in the second quarter of 2024 reached VND 333.5 billion, a decrease of 17% compared to the same period last year, mainly driven by real estate brokerage and investment.
In the second quarter, Cenland reported a net profit of VND 8.6 billion, a decrease of 13% compared to the same period last year. For the first half of the year, the company's net revenue was VND 827 billion, an increase of 82%, and after-tax profit was VND 16 billion, 11.5 times higher than the same period last year.
Cenland's cash flow statement also noted that the company is still facing difficulties with cash flow; in the first six months of the year, Cenland recorded a net cash flow from business operations of negative VND 50.4 billion, compared to negative VND 55.6 billion in the same period last year.
At Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land - code: SCR), consolidated net revenue in the second quarter of 2024 reached VND 75.2 billion, an increase of 9.6% compared to the same period last year; after-tax profit for this period was only VND 944 million, a decrease of 76% compared to the low level of the same period last year.
For the first half of the year, TTC Land achieved VND 144 billion in revenue, a decrease of 3.7% compared to the same period last year. Pre-tax profit reached VND 16.1 billion, an increase of 15.8% compared to the same period last year, but after- tax profit decreased by 3.4%, to VND 5.7 billion.
TTC Land's operating cash flow continued to record a negative VND 15.5 billion, a significant improvement compared to the negative VND 1,150 billion in the same period last year.
Taseco Real Estate Investment Joint Stock Company (Taseco Land - code: TAL) also recorded net revenue of VND 599 billion in the second quarter of 2024, double that of the same period last year. However, due to a sharp decrease in other income and a significant increase in tax expenses, Taseco Land's after-tax profit in the second quarter only reached VND 6.4 billion, compared to VND 17.2 billion in the same period last year.
For the first six months of the year, the company's net revenue reached 908 billion VND, an 81% increase compared to the same period last year; after-tax profit reached 16.6 billion VND, a 4.6% decrease compared to the same period last year.
Notably, Taseco Land's net cash flow from business operations in the first six months of the year was negative 178 billion VND, compared to a negative 426 billion VND in the same period last year.
Nam Long Investment Corporation (Nam Long Group - ticker: NLG), a major real estate developer in the South, recorded unfavorable business results. In the second quarter of 2024, the company's net revenue reached 252 billion VND, and after-tax profit reached 160 billion VND, a decrease of 73.5% and 31% respectively compared to the same period last year.
For the first six months of the year, Nam Long recorded VND 457 billion in revenue and VND 94.8 billion in after-tax profit, a decrease of 61.5% and 62% respectively compared to the same period last year. With these results, the real estate company has only completed 7% of its revenue plan and 11.5% of its profit plan for the whole year.
Despite being profitable, Nam Long is facing a major problem with its net cash flow from operations being negative at nearly 851 billion VND in the first half of the year, compared to 1,127 billion VND in the same period last year.
In addition, a number of other real estate companies also faced cash flow difficulties, recording negative net cash flow from business operations in the first six months of the year, such as: Khai Hoan Land Group Joint Stock Company (Code: KHG) recorded a negative 93 billion VND; Tu Liem Urban Development Joint Stock Company (Code: NTL) recorded a negative 128 billion VND; Khang Dien House Investment and Business Joint Stock Company (Code: KDH) recorded a negative 2.5 billion VND…
Source: https://laodong.vn/kinh-doanh/doanh-nghiep-dia-oc-van-gap-kho-ve-dong-tien-1375841.ldo
