In the first half of 2024, although the market has not really improved and real estate businesses still face many difficulties, TTC Land still recorded significant progress compared to the same period last year.
Construction progress on the TTC Plaza Da Nang project continues to be closely monitored, as this project is expected to provide TTC Land with a stable source of income for the foreseeable future.
Accordingly, in the second quarter of 2024, Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land, stock code SCR) recorded revenue of 75.5 billion VND, an increase of 10% over the same period, profit before tax reaching 9 billion VND, reaching 56% of the profit plan for 2024.
With a diversified income structure, in which rental income from the commercial floors of the TTC Plaza Binh Thanh, TTC Plaza Duc Trong, Charmington La Pointe... projects plays an important role in the strategy of stabilizing income in a generally difficult real estate market context. Construction revenues and sales of building materials also contributed VND 3.1 billion and VND 14.4 billion respectively to the overall revenue structure. Revenues from commercial floor rental and services rose slightly on the first quarter, to VND28 billion and VND31 billion respectively.
Operating costs were effectively reduced, total business management costs (not including provision reversal) were 17 billion VND, down 56% over the same period of 38.2 billion VND. As a result, pre-tax profit in the second quarter reached 9 billion VND, growing 28% compared to the previous quarter, reaching 56% of the 2024 profit plan.
As of June 30, TTC Land's total assets increased slightly by 2%, reaching VND 10,867 billion. The enterprise recorded inventory of 4,100 billion VND, of which unfinished real estate was 2,900 billion VND and real estate goods was 1,168 billion VND.
Earlier, at the conference summarizing the first 6 months of the year and implementing the operating plan for the last 6 months of the year, Mr. Nguyen Thanh Chuong, Chairman of TTC Land, said that compared to 2023, the economy in 2024 has improved and continues to improve. There are positive signs. TTC Land's business results may not have met expectations compared to what they were several years ago. However, TTC Land has proactively implemented many solutions related to project work, finance and business strategy adjustments.
"So far, activities are well under control, resulting in a steady improvement in cash flow. In guiding activities for the last six months of the year, one of TTC Land's main objectives is to promote the liquidation of assets that do not serve the business strategy to generate income," said Mr. Chuong.
TTC Land's strategic goal for 2024, with a view to 2030, is that in addition to the main area of residential real estate development, if the right conditions exist, TTC Land will give priority to the development of industrial and logistics real estate in the southern area of the market.
Alongside the management and operation of the building, TTC Land's Chairman of the Board also shared the orientation of strongly developing greenery for TTC Land Management (a TTC Land subsidiary) in groups of industrial parks and residential areas. Consequently, with the advantage that the TTC group manages around 1,300 hectares of industrial parks and owns many large industrial parks, the provision of trees for existing industrial parks will contribute to revenue and profit stability.
In preparation for the new strategic cycle 2026-2030, TTC Land will expand its residential land bank to 42 hectares, creating the conditions for a breakthrough in the period ahead.
For the TTC Plaza Da Nang project, by the end of July, construction of tunnel B1 had been completed, over 40% of the work volume in tunnel B2 had been completed, and concrete pouring in zones 1, 2, 3, 6 and 6 had been completed. Installation of the MEP system for construction of the B2 tunnel and urgent preparation for construction work in zones 4, 5, 8 and 9 are continuing.
Thanks to the ongoing efforts of investor and contractor Coteccons, the TTC Plaza Da Nang project is being accelerated to ensure on-time delivery. This project is expected to generate stable revenues for TTC Land in the near future.
Via Sai Gon Giai phong