Phat Dat's after-tax profit was 51 billion VND in the third quarter with many positive signals from the Bac Ha Thanh project.

Bac Ha Thanh urban area project has been granted a construction permit for phase 2 by Binh Dinh.

PDR's third quarter profit mainly comes from financial activities

Phat Dat Real Estate Development Joint Stock Company (stock code: PDR) has just announced its consolidated financial report for the third quarter of 2024. Accordingly, in the context of the general real estate market still facing many difficulties, Phat Dat's net revenue from sales and service provision in this quarter recorded modest results, reaching only 2.6 billion VND. However, financial revenue reached 194 billion VND, an increase of 352% over the same period.

Financial revenue continued to increase strongly thanks to Phat Dat's continued transfer of shares in associated companies, similar to the business results of the previous quarter.

At the end of June, Phat Dat announced its plan to transfer all 111.7 million shares at BIDICI Real Estate Joint Stock Company, equivalent to 49% of charter capital, with the expected minimum revenue of VND 1,452 billion.

According to Mr. Nguyen Van Dat - Chairman of Phat Dat Board of Directors, the real estate market in 2024 is still difficult, especially in terms of legal issues. Therefore, Phat Dat's top priority is to survive and develop.

In particular, this enterprise has chosen to sell assets to maintain business cash flow, prepare for a new cycle and the decisions in this enterprise's strategy are all aimed at the interests of shareholders.

"In difficult times, selling assets is necessary to maintain operations and generate cash flow. The important thing is that Phat Dat still has valuable assets to sell and that is a bright spot in the current challenging context," Mr. Dat shared.

Binh Dinh Provincial People's Committee has also officially approved land prices applicable to the Bac Ha Thanh urban area project.

According to the explanatory report, Phat Dat's leaders said that the general economic situation is still difficult, including the real estate industry, so the investment and development of this enterprise has not been favorable in the third quarter, leading to a decrease in profits in the quarter.

However, thanks to the asset sale strategy, business results are still modest, but this real estate company still closed the third quarter of 2024 with after-tax profit reaching more than 51 billion VND.

Accumulated in the first 9 months of 2024, Phat Dat recorded net revenue of 173 billion VND, after-tax profit of nearly 154 billion VND.

Many new steps in Bac Ha Thanh project

As of September 30, Phat Dat's total assets were recorded at VND22,663 billion, up 7% over the same period. Of which, inventories accounted for the largest proportion with nearly VND12,854 billion, accounting for more than 50% of Phat Dat's total assets.

Inventory is nearly 3 times the value of Phat Dat's total short-term and long-term debt of VND 4,415 billion, of which short-term debt is VND 1,366 billion and long-term debt is VND 3,049 billion.

Notably, the Bac Ha Thanh project is a "bright spot" in the third quarter 2024 financial report of this real estate developer when the inventory value of this project increased by 62% compared to the second quarter 2024, reaching VND 583 billion (an increase of VND 224 billion).

This shows that the Bac Ha Thanh project is making rapid progress and Phat Dat is focusing resources on this project to put it into operation in the fourth quarter as planned.

Previously, on October 9-10, 2024, the Department of Construction of Binh Dinh province granted a construction permit for phase 2 with a total area of ​​over 16.9 hectares for the Bac Ha Thanh Urban Area project invested by Phat Dat. Recently, the People's Committee of Binh Dinh province also officially approved the land price applicable to the Bac Ha Thanh urban area project, marking an important step in the legal implementation of the project.

The 3 projects, Bac Ha Thanh, Thuan An and Cadia Quy Nhon, will bring Phat Dat 35,000 billion in revenue in the next 3 years.

By the end of the third quarter, Phat Dat's total liabilities were recorded at over VND11,606 billion, an insignificant change compared to the same period. In the short-term debt category, this enterprise had to pay VND2,777 billion to sellers, a sharp increase of 313%.

According to the financial statement, Phat Dat is focusing on paying off debts to construction partners related to the Bac Ha Thanh project, such as 620 Infrastructure Investment and Development Joint Stock Company (VND129 billion) and TC Binh Dinh Construction Joint Stock Company (VND118 billion).

In Phat Dat's long-term debt portfolio, outstanding loans at MB Bank (MBB) increased by VND168 billion. According to the explanation, the funding from MBB will help PDR quickly deploy the final items of the Bac Ha Thanh project.

According to the leader of this enterprise, the 3 projects Bac Ha Thanh, Thuan An and Cadia Quy Nhon will bring Phat Dat 35,000 billion in revenue in the next 3 years. The two projects Bac Ha Thanh and Thuan An alone will contribute nearly 20,000 billion VND.

Source: https://tuoitre.vn/phat-dat-lai-sau-thue-51-ti-dong-trong-quy-3-voi-nhieu-tin-hieu-tich-cuc-tu-du-an-bac-ha-thanh-20241012112703364.htm