Positive business results of 2016 helped stocks of dozens of real estate companies hit the ceiling in the first months of this year.
Although the real estate market has recovered and grown over the past few years, the stock market is still inactive. Over the course of 2017, real estate stocks will turn around and grow. The rise not only comes from large companies but also from mid-size companies or Penny stocks.
After going public at the end of 2016, Novaland Group NVL’s trading volume fluctuates around VND60,000 / share. However, about a month now, NVL shares have grown sharply, from VND58,800/ share on 10 – 2 increased to VND68,800 / share in 2 – 3 sessions.
In early February, CII of Ho Chi Minh City Infrastructure Investment Joint Stock Company is trading at around VND30,000 per share. Currently, CII is trading at VND 34,000 per share.
CII was also rated by the US investment bank Credit Suisse as a top investment grade. This is a ranking of companies in many emerging markets that Credit Suisse has researched, not the rankings reserved for Vietnamese stocks.
In this chart, Credit Suisse uses the HOLT method to calculate multiple financial ratios and based on that, evaluates a company based on three key criteria: The three main criteria are company quality, market movement, company valuation.
Credit Suisse argues that CII is a high-quality, high-performing, low-priced stock company with a rating of 99/100, ranked the most attractive investment based on the basic valuation method.
Similarly, DXG’s shares of Green Land Group also increased sharply after falling to VND12,500 per share in the second half of 2016. On 2 March, DXG’s shares reached VND16,850 per share.
Another company that has recently increased its share price is Thu Duc Housing Development Company with prices ranging from VND 9,600 / share to VND 11,800 / share as of yesterday.
In the last three trading days, NLG’s shares of Nam Long Investment Joint Stock Co continued to increase from VND22,250 / share to VND22,900 / share.
Even Penny stocks – stocks worth under $5 also have remarkable growth. Particularly, HAR shares of An Duong Thao Dien Real Estate Trading and Investment Joint Stock Company will start trading at the beginning of 2013 at nearly VND40,000 / share.
However, the difficult business situation caused HAR lower prices do not break under the market price. Compared to the beginning of the year, HAR shares are priced at VND2,910. At present, HAR is trading around VND3,200 per share. Although much lower than the book value of 10,500 dongs per share, this growth is also positive.
Hoang Quan Real Estate Trading Consultancy Joint Stock Company (HQC) also has four consecutive up sessions, from VND2,500 / share to VND2,660 / share.
Good business results
A series of shares of real estate companies hit the ceiling in the first months of 2017 was explained by experts because the business results in 2016 are too optimistic.
For example, Novaland’s after-tax profit in 2016 reached nearly VND1,665 billion, up 274% from 2015 and became one of the largest listed real estate companies in 2016.
The breakout of DXG is also related to the company’s earnings. According to the financial statement for the fourth quarter of 2016, DXG reached VND1,186 billion in revenue, up 144% over the same period in 2015.
This led to a net profit of VND684 billion. For the whole year of 2016, DXG reached VND2,507 billion in revenue and net profit increased 53% to VND664 billion. As a result, the company surpassed its full-year target by 31%.
Similarly, the main reason for TDH shares to rise sharply in 2016 is also a positive business result. Specifically, net sales reached over VND1,060 billion, up 20% y / y. Profit after tax was VND105.4 billion, up 130% y / y and 31% year.
According to Le Hoang Chau, Chairman of the HCM City Real Estate Association, due to revenue recognition in accordance with the progress of construction, many real estate companies have good sales pace, not yet reflected in the business results. 2016. Therefore, business results of many businesses will continue to grow strongly in the following years, when the handover of houses.
“The belief in the market, good business results, the enterprises themselves have adjusted the segment and business strategy … are factors to help investors boldly buy real estate stocks, causing The stock sector is constantly growing, “Chau said.
President of HCMC Real Estate Association added that in 2017 the property market will continue to grow, the segment of cheap housing will throne. The risk of real estate bubble will not happen in 2017. Therefore, real estate stocks are still a safe investment.
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