Set a revenue target of VND 5,500 billion, tripled in 2021, actively expanding land bank with M&A strategy
Notably, this southern real estate enterprise aims to grow profits by 20% this year, in the context of the volatile real estate market, the buyer’s psychology still affected by Covid-19 has not completely ended. .
“Falling” with a series of difficulties, profits still increase strongly in 2021
In 2021, in the context of the real estate market facing many difficulties due to the epidemic and the legal review process, An Gia still strongly increased its asset size and achieved profits as expected.
As of December 31, 2021, total assets doubled to VND 9,753 billion, equity reached VND 2,675 billion. Profit after tax for shareholders of the parent company reached VND 415 billion, up 27% over the same period last year. Basic earnings per share (EPS) reached VND 5,068, up more than 5%. For the whole period of 2017 – 2021, total assets achieved an average growth rate (CAGR) of 58.5% while equity increased by 137.6%.
To achieve this result, the company has a business strategy focusing on strengths and key products in the mid-range segment, in addition to expanding its land bank to neighboring provinces and cities of Ho Chi Minh City to anticipate the new cycle. new growth period of the real estate market. The promotion of sales during the epidemic season was focused by the management, proposing solutions such as diversifying sales channels, expanding links with distribution units to promote consumption activities.
Thanks to that, overcoming the epidemic obstacle, the company opened and sold shopping carts of Westgate Binh Chanh (HCMC) projects, The Standard (Binh Duong), completed the handover of Sky89 project (HCMC). By the end of 2021, the item of prepaid buyers reached VND3,335 billion, one and a half times higher than the previous year, which is evidence of positive sales activity. This amount will be accounted into revenue and profit when the project is handed over.
M&A strategy to expand large land bank“head pillow” for 4-7 years
Considering the expansion of the land bank as a cross-cutting strategy, An Gia is constantly looking for opportunities, implementing M&A, prioritizing clean land, having clear legislation, and fast implementation time. The areas with the company’s land fund are Ho Chi Minh City (District 7, Binh Chanh, District 9, Nha Be, Binh Tan…) and neighboring localities (Long An, Binh Duong, Dong Nai, Vung Tau …) to match the strong segment. In addition to the location and legal factors, the investment is also carefully considered through very specific qualitative assessments to ensure effectiveness.
At the end of 2021, this business purchased a land bank of about 3.2 hectares in Binh Chanh (HCMC) with the scale of more than 2,000 products (“BC3.2”), ready to develop in 2023 and in the process of being developed. completed negotiations to buy another 30 – 50 ha of low-rise land fund.
In addition, the acquired land funds are deployed and developed at high speed. The proof is that in 2021, An Gia launches new shopping carts of Westgate project (Binh Chanh) and The Standard project (Binh Duong) which are two land funds purchased in the third and fourth quarters of 2019.
An Gia’s management plans to expand investment participation or investment cooperation to develop the existing land bank to ensure sustainable development in about 4 years. When the company officially completes the M&A of the land funds under negotiation, it will ensure stable development and growth in the next 7 years.
In 2022, An Gia sets a target of VND 5,500 billion in total revenue, more than 3 times higher than the previous year, profit after tax of shareholders of the parent company is VND 500 billion, up 20%. The company plans to hand over and record revenue from The Wave project (Vung Tau), launch a new project – The Gio (Binh Duong) with 3,200 apartments. In the period of 2022 – 2024, the company estimates revenue of about 1.5 billion USD from more than 11,400 products put on the market. In addition, the company will continue to implement a series of projects in Ho Chi Minh City and neighboring provinces such as Binh Duong, Ba Ria – Vung Tau, Dong Nai, Long An… with a focus on residential products ( apartments, complexes) in the mid-range segment, serving real housing needs.
At the meeting, shareholders approved the plan to issue an additional 13.3 million shares to pay dividends in 2021 and issue under the employee selection program (ESOP). Specifically, An Gia will issue a maximum of 11.1 million shares to pay a dividend rate of 10%; offering 2.2 million ESOP shares at a selling price of not less than 10,000 VND/share. Implementation time in the fourth quarter of this year. It is expected that after the issuance, the charter capital will reach VND 1,250 billion.
Besides, the company plans to raise another 1,000 billion dong from the sale of non-convertible bonds. Shareholders also approved the resignation of the member of the Board of Directors of Mr. Nguyen Trung Tin, and additionally elected Mr. Dao Thai Phuc – the representative of Truong Giang Investment and Management Joint Stock Company, which holds 41.7% shares of AGG.
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