Vinhomes Joint Inventory Firm (belonging to Vingroup) presently holds the place of the primary actual property firm in Vietnam. Within the first 6 months of 2021, Vinhomes achieved income of over 41,000 billion VND. Revenue after tax is 16,050 billion dong, equal to a formidable web revenue margin of 39%.
Along with spectacular enterprise efficiency, Vinhomes can also be well-known for being an actual property enterprise that makes use of low debt, regardless of repeatedly investing in massive tasks that require massive capital assets.
Even, the ratio of whole debt / whole property of Vinhomes is regularly reducing over time to 10.9%. The online debt/fairness ratio is just 8.9%.
Supply: Vinhomes
Could be placed on the size with Novaland, the whole asset measurement of this firm on the finish of the second quarter of 2021 is greater than 171,500 billion VND in comparison with 210,850 billion VND of Vinhomes. Nonetheless, Novaland’s whole debt/whole property ratio is as much as 30%, which is three occasions greater than Vinhomes.
Vinhomes is presently borrowing almost 23 trillion dong, of which two-thirds are by way of bonds issued domestically. The loans even have brief maturities with a mean maturity of 1.07 years.
Vinhomes suffers little or no debt strain in comparison with different corporations in the identical trade. Within the first 6 months of the yr, Vinhomes recorded VND 1,207 billion in curiosity bills and bond issuance. Taking a look at Novaland, monetary bills amounted to VND 2,283 billion, together with: price of mortgage association and bond settlement within the interval of VND 1,259 billion, curiosity cost on funding cooperation VND 716 billion, curiosity expense of VND 149 billion. VND, price of swapping two currencies and lack of change price distinction of VND 138 billion…
In the meantime, income of Vinhomes in the identical interval was 5.Eight occasions greater than Novaland, revenue after tax was almost Eight occasions greater.
So what’s particular at Vinhomes? Why is the biggest actual property firm in Vietnam ready to make use of debt at a really low stage?
To handle tasks, meet working capital wants and finance varied investments to develop in accordance with enterprise plans, Vinhomes depends on quite a lot of capital sources, together with: inner assets, grants from exterior by way of monetary establishments, industrial banks, capital market providing and particularly pre-sale of creating tasks.
Along with the truth that Vinhomes has dependable entry to capital from industrial banks as a result of its market management place, the status of the management and the place of the mother or father firm Vingroup; This firm primarily finance the funding and development of its tasks with pre-sales cash.
Particularly, Vinhomes usually requires prospects to pay upfront an quantity of about 30% of the worth of the housing product proper on the time of signing the contract. Due to the upfront cost incentives, homebuyers usually make their funds forward of time usually.
As well as, Vinhomes additionally builds installment schedules in buy and sale contracts with prospects to make sure that the money circulation from installments is adequate to fulfill the anticipated money wants for land and development charges till the date of debate. ship. This in flip reduces the necessity for different types of exterior funding.
On the monetary statements of Vinhomes, short-term prepayment by patrons is a fabric merchandise on the stability sheet.
As of June 30, 2021, this merchandise recorded a price of greater than VND 23,000 billion, accounting for 1 / 4 of short-term debt. The worth of Vinhomes’ pay as you go patrons has all the time remained excessive for a few years, amounting to billions of {dollars}.
It may be seen that, after reaching a peak on the finish of 2019, Vinhomes’s short-term prepayment is reducing. Going through the sophisticated results of the 4th pandemic wave, gross sales and handover actions at actual property tasks are anticipated to face many difficulties. The money circulation from Vinhomes’ pay as you go prospects could also be affected, main the corporate to want to stability from different capital sources.
The truth is, Vinhomes is planning to subject greater than 6,500 billion dong of bonds, together with 4,370 billion dong within the type of public providing and a pair of,160 billion dong within the type of personal placement.
Vinhomes additionally bought 60 million treasury shares at a mean worth of 108,637 VND/share, incomes 6,518 billion VND.
This yr, Vinhomes plans to launch the good tasks Vinhomes Surprise Park, Vinhomes Co Loa and Vinhomes Dream Metropolis… These are tasks that deliver again the knees after the success of Vinhomes Ocean Park, Vinhomes Sensible Metropolis and Vinhomes Grand. Park.
