(Vote: DTCK) Overcoming the challenges in 2020, Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land) i...
(Vote: DTCK) Overcoming the challenges in 2020, Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land) is developing a development strategy for the period 2021-2025, aiming for an average increase in revenues and profits of 35% / year and 40% / year respectively.
2020 - Completion of restructuring, profit above 71% of the plan
The Vietnamese economy in general and the real estate market in particular have just experienced a year in 2020 marked by many fluctuations and negative impacts of the Covid-19 pandemic. The slowdown in economic growth is leading to a decline in demand for real estate investment in the context of supply shortages, real estate companies do not have new projects or cannot implement projects due to problems with licensing procedures.
The income from the property transfer still represents the highest proportion with 75%, mainly projects Jamona City, Jamona Home Resort, Carillon 5, Jamona Golden Silk... Commercial floor rental activities at TTC Plaza Binh Thanh, TTC Plaza Au Co, Belleza ... continue to contribute approximately 12% to total revenue, contributing to the stability of the Company’s revenues during the last challenging period.
TTC Land’s goal is to join the trillion dôngs profit club by 2025
TTC Land’s net revenues in 2020 did not meet the plan, largely due to the disposal and accounting of revenues from the Carillon 7 project that will be implemented in 2021. In addition, TTC Land’s gross margin in 2020 recorded a negative result of 308 billion VND, mainly due to the inefficient delivery of certain projects and the company’s financial restructuring plan, as a premise for the development of a new development strategy in the period 2021-2025.
The positive point of cost management over the past year is that the company has strictly controlled operating costs and at the same time implemented a restructuring of the device, from which the company’s management costs have decreased considerably, about 73 billion VND, or 46% compared to 2019. This has helped increase profits and help the company weather the tough times caused by the Covid-19 pandemic.
In addition, TTC Land focuses on clearing projects that are not in line with the Company’s development direction. The turnover of financial activities in 2020 will reach 844 billion VND, twice as much as in 2019, whose recorded profit of 491 billion VND comes from the transfer of 39% of the shares of Tin Nghia Asia Company. TTC Land also recorded another VND 100 billion in revenue from the liquidation of the Tan Hung project cooperation contract.
Civil real estate is the main activity of TTC Land
2021 - pivotal year for the next 5-year strategy
Overcoming a difficult 2020 for the real estate market, the board of directors of TTC Land has strived to find a new direction, Flexibly change its business strategy to ensure the completion of the plan and not allow the company to be affected by the epidemic situation; Maintain business operations based on effective management and work towards better goals in 2021.
As a result, the revenue plan for 2021 amounts to more than 1.500 billion VND, up more than 60%; pre-tax profit is expected to rise to 230 billion VND, up more than 10% from 2020.
This year, TTC Land is expected to sell more than 800 products with sales estimated at more than 1.3 trillion VND, helping to generate abundant revenues and strengthen the commercial activities of the entire company.
Recognizing that in the coming period, the economy will stabilize and develop, the real estate market will recover and gradually become more exciting, TTC Land will develop a development strategy for the period 2021 - 2025 in the spirit of consolidation and development based on the objective of average net income growth of 35% / year, to more than 3,500 billion VND by 2025; Pre-tax profit will increase by an average of 40% per year, to reach more than 1 trillion VND by 2025.
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