Viglacera earns more than 5 billion VND per day from real estate

The real estate sector brought in a profit of 950 billion VND for Viglacera Corporation in the first 6 months of the year, equivalent to a profit of 5 billion VND per day.

Viglacera (VGC) announced that its consolidated net revenue for the first 6 months was estimated at nearly VND7,000 billion, completing more than half of the yearly plan. Pre-tax profit was about VND913 billion, equal to three-quarters of the yearly profit target. For the parent company alone, profit was estimated at VND1,210 billion, about 8% from the yearly plan target.

The management board said that the real estate sector was the main contributor to the business results in the first 6 months of the year, especially industrial park real estate. This sector earned more than VND2,600 billion in revenue and VND950 billion in profit. On average, Viglacera earned more than VND5 billion in profit from real estate business every day. In addition, this enterprise also recorded VND310 billion in dividends from affiliated companies.

Viglacera is a "giant" in the field of construction materials production, established in 1974. In the 2000s, the company began pouring money into real estate, which has recently become a leading sector, contributing to profit growth. The company is often known for the Yen Phong Industrial Park project (Bac Ninh), where Samsung has a factory.

Viglacera is the investor of Yen Phong Industrial Park (Bac Ninh), where Samsung's factory is located. Photo: VGC — Viglacera is the investor of Yen Phong Industrial Park (Bac Ninh), where Samsung's factory is located. Photo: *VGC*

Last year, real estate accounted for more than 70% of Viglacera's total consolidated pre-tax profit. Driven by real estate business, the company's total pre-tax profit reached more than VND2,300 billion, nearly 1.5 times higher than in 2021. This is also the company's largest profit since it announced the information in 2010.

VGC currently owns and operates 12 industrial real estate zones, attracting 300 domestic and foreign enterprises with more than 16 billion USD in FDI capital. By 2025, Viglacera said it will increase the total number of industrial zones to 20, with a total area increase of about 2,000-3,000 hectares.

In addition to industrial parks, the company also participates in many segments including resorts, urban areas, garden houses and apartments. Recently, Viglacera has gradually promoted the social housing sector.

At the beginning of the year, VGC said it had started construction of 2,000 apartments in the Yen Phong Industrial Park workers' housing project (Bac Ninh) and 1,000 apartments in the Dong Mai Industrial Park workers' housing project (Quang Ninh). In the 2022-2030 period, This company plans to invest in 50,000 social housing units.

A recent report by Agribank Securities Company (Agriseco) expressed a positive view of Viglacera as it benefits from the bright spots in the industrial park real estate sector. VGC's industrial parks are concentrated in the North, with low occupancy rates, so the company has long-term potential as it has attracted many large customers such as Samsung, BYD, and Accor. According to Mirae Asset Securities, rental prices at two large projects such as Yen Phong and Thuan Thanh are up to 125-150 USD per square meter.

However, Agriseco still forecasts that Viglacera's profits may decrease due to difficulties in the construction materials segment when demand and glass prices decrease. Along with the forecast of declining profits, Mirae Asset also noted the pressure on interest expenses. By the end of the first quarter, VGC's total loans and financial leasing debt were about VND4,000 billion, up nearly 12% compared to the beginning of the year.

Siddhartha

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