Giant property developer announced profit at $60 million in six months

The financial results just announced by Novaland show that its net revenues in the first half of 2018 reached nearly $185 million, up 29 per cent year on year, mainly attributable to revenues from projects of Lakeview City, Rivergate Residence, The Tresor Residence, Golden Mansion, Wilton Tower, Kingston Residence, and Lucky Palace.

These projects contribute close to 90 per cent to the company’s net revenues in the first half of this year and will continue to generate larger revenues in the second half of 2018.

High revenue growth helped gross profit reach $60 million, up 74 per cent over the same period. The sharp increase in gross profit also resulted from Novaland re-evaluation of its investments in associates, the largest of which was the Sun City project. 

As of June 30, 2018, Novaland just obtained a net profit of $31 million, equal to 23 per cent of the fiscal year profit target. However, the company is still confident in achieving the profit plan because revenues and profits of real estate projects commonly accrue to the last two quarters of the year.

In the first half of the year, Novaland topped out many projects including The Sun Avenue Residence, Sunrise Riverside, Sunrise Cityview, RichStar, Newton Residence, Orchard Parkview and Botanica Premier.

Most of these projects will be delivered in the third and fourth quarters of 2018. The company is accelerating the construction of projects under development to deliver on time to complete 2018’s revenue and profit targets.

Compared to the end of last year, inventories increased by 16 per cent to nearly $1.35 billion as of June 30, 2018.

With regard to resort real estate, Novaland’s new business line, Novaland opened the first hospitality project – Azerai Can Tho Resort in early June 2018. 

Positioning on the "affordable luxury" segment, Azerai Can Tho is the first project in the Nova Phu Sa resort chain developed by the Novaland Group in the Mekong Delta region.