(NDH) According to the Annual General Meeting of Shareholders scheduled to be held on 26/4, Ba Ria - Vung Tau Housing Development JSC (HOSE: HDC) plans to propose shareholders year 2017 profit target with 20% growth and cash dividend by 10% for 2016.

Progress report on the implementation of the project in 2016, the Executive Board said that the company has completed construction of A plot including 8 foors at 199 Nam Ky Khoi Nghia and handed over the house to customers in 2015, seven units left, of which 310 units / 320 units were transferred the ownership rights.

Implementing the ownership process for other projects such as granting the ownership certificate for the project of Hillside II, Ward 10, having completed the ownership of the apartments 18 floors in Phu My and the project. Other cases are underway.

Regarding the relocation of the first 18-storey residential complex as the first supermarket in Phu My urban area with the size of 342 apartments to social housing, the company has completed handover procedures and has been paid in VND 50bn advance in 2016, the remaining more than 24 bn will be paid in 2017.

The ground floor of the first phase of Phu My urban area project is also in business. During the year, the company sold 62 lots of townhouse, villas and 2 large plots of land bringing in considerable revenue.

For the Ngoc Tuoc II Hill Villas, the Company has promoted the coordination with the provincial People's Committee, the People's Committee of Vung Tau City and the People's Committee of Ward 8 to handle land encroachers. The progress is slow so the business is much affected.

During the year, the company also completed the investment and construction of Binh An Ward, Ward 10 and sold about 60% of the apartment.

In addition, other projects in the Company's portfolio are also being prepared so that it can be deployed at the right time.

Western housing project on 3/2 street, Ward 11, Vung Tau city, with an area of ​​6.3 ha, has completed the construction of the infrastructure: leveling up the land area of ​​the Company, Traffic system.

In addition, Hodeco has asked the Vung Tau City People's Committee to conduct a survey of the land price to carry out site clearance and to agree with land users on projects such as Phuoc Thang urban area ; Hai Dang House in Ward 12 and Ngoc Tuoc P.8. Vung Tau City and the Company are also stepping up the agreement on transfer of land use rights in the above projects.

Particularly for housing projects in Hai Dang, the company has been transferred about 6 ha, increasing the area of ​​land transferred to about 25 hectares.

10% cash dividend in 2016

For business results in 2016, the Executive Board said the company has reached a total output value of VND 590 bn, exceeding 7% over the plan; Net revenue came to VND480 bn, 6% lower than the full year target.

According to the Board of Supervisors, in 2016, the reason for the decrease in sales over the same period was due to competitive pressure from real estate companies such as DIC, Hung Thinh, Son Thinh… and the package of 30 trillion dong disbursed in early June, 2016 also affected the company.

Nevertheless, Hodeco still achieved pre-tax profit of VND 67.12 bn, up more than 10% compared to its FY2015 performance and slightly above the target set for 2016. After-tax profit of parent company increased 22% compared to 2015, reaching VND 58 bn.

With that result, the Board of Directors of Hodeco proposes the General Meeting of Shareholders to approve the cash dividend payment of 10% / face value for 2016.

Profit plan grows 20% for 2017

HDC management said that in 2016 despite the rise of the real estate market, however, the growth was mainly in big cities such as Ho Chi Minh City and Hanoi and Da Nang. In other provinces, the recovery of the real estate market is still slow.

In addition, the previous solutions to support enterprises in the real estate market now has ended; typically, the VND 30 trillion-pack of disbursements n early June 2016 made the market situation in the middle segment difficult.

Nevertheless, the Hodeco’sBoard of Directors has assessed that the business environment is becoming more competitive as a series of government’s directives on removing difficulties for enterprises are being implemented. In addition, the characteristics of the real estate market in Vung Tau is usually 1-2 years slower than in big cities.

The brand value has been established in the field of real estate investment in Vung Tau with the shift of the focus of economic development to service and tourism in the local. The Board of Directors of Hodeco plans to submit to the shareholders a plan with revenue of VND 605 bn, up 26% in 2016, profit before tax of VND 80 bn, up 20% and it is expected to pay a dividend of 10% / face value.

As for the specific plan, Hodeco expects that in 2017, besides continuing to exploit its existing projects, Hodeco plans to complete preparations for the investment in a 20-storey tourist apartment and hotel project with brand FUSION SUIT at 2 Truong Cong Dinh to start construction in the first quarter or quarter II / 2017. The company will also prepare for the ThiSach apartment project and Thong Nhat apartment building to start construction at the right time.

In addition, Hodeco will also promote ground clearance to invest in infrastructure construction phase 02 in the project area villas Ngoc Tuoc II. Continue to negotiate with people, land reclamation and compensation, other preparatory work for the implementation of the 49ha Hai Lien project and Phuoc Thang urban area in Ward 12, Vung Tau City. Ship

Besides, Hodeco will also focus on bidding, construction and installation works in the area, joining with some partners in applying for permission to invest in a number of BT projects, for the time being in Thong Nhat Street.

Hodeco owns more than VND 950 bn of inventories and real estate investment, accounting for 67% of its current assets, according to the consolidated financial statement in 2016. According to the board, this value has not been revalued since equitization from 2001 to present.

Hodeco said that this year, it will concentrate on restructuring its portfolio of projects in the direction of building good cash flow and higher investment efficiency.

Hoang Trung - ndh.vn