Phat Dat enters Top 5 most profitable enterprises in early 2021
In 2Q2021, PDR’s pre-tax profit recorded an impressive growth of +112% YoY, while accumulated pre-tax profit of 1H2021 increased by +82% compared to the same period last year, reaching VND 637 billion. With these outstanding business results, PDR climbed up to the Top 5 most profitable listed real estate companies in the first half of 2021. At the same time, the ticker PDR was also recommended in stock portfolio by Mirae Asset Securities Vietnam.
In order to adapt and overcome difficulties posed by the increasingly complicated COVID-19 epidemic, from the beginning of 2021, PDR has initiated plans and implementation measures to ensure the pursuit of the given goals and proper response to the pandemic impacts. In addition, thanks to its flexible adaptability to new situations, PDR has maintained its position as one of the leading enterprises in the industry by recording strong business results and continuously conducting major M&A deals, creating a solid premise for speedy and stable development in the period 2021 – 2025.
Business results in the first half of 2021 witnessed strong growth
According to the semi-annual report audited by Ernst & Young Vietnam, PDR’s accumulated revenue for the first half of 2021 reached VND 1,123.8 billion, pre-tax profit reached VND 637 billion (+82% YoY), and profit after tax reached VND 502 billion (+80% YoY). Thereby, PDR has completed 27.2% of the year’s pre-tax profit target set in the approved plan at the 2021 AGM.
Such impressive growth resulted from the accelerated handover process to record revenue and profit from a part of the low-rise area in Zone 9 and a part of the high-rise area in Zone 4 inside Nhon Hoi Ecotourism City (Binh Dinh). Again, this reflects the proven strategy to expand investment into central coastal provinces that are rich in economic and tourism potentials, such as Binh Dinh, Quang Ngai, and most recently, Da Nang City – the growing kernel of the central key economic region.
Top 5 listed real estate enterprises with the highest profit in the first half of 2021
Especially, the positive business results in 2Q2021 enable PDR to be in the Top 5 listed real estate enterprises with the highest profit for the first half of 2021, reflecting the perseverance with given goals and flexible adaptation to the impact of the COVID-19 pandemic.
Given these positive signals, PDR is confident in completing the target revenue of VND 4,700 billion, profit before tax of VND 2,335 billion, and profit after tax of VND 1,868 billion, following the plan approved by the 2021 AGM.
The ticker PDR is recommended to increase the proportion in investment porfolio by many securities companies, including Mirae Asset Vietnam.
In addition to impressive business results, the first half of 2021 also witnessed PDR reaching “beyond limits” when the ticker closed the 30th June 2021’s session at 93,400 VND/share (+123% YTD), bringing the Company’s market capitalization to over USD 2 billion (more than 2 times compared to the beginning of 2021).
The impressive gain has made PDR a positive contributor to the overall gain of the VN-Index and one of the most noticeable constituents in VN30 as well as the real estate sector. Therefore, in the first Analysis Report released on 21st June 2021, the Research and Analysis Department of Mirae Asset Securities Vietnam (MASVN) recommends a BUY CALL for PDR stocks, targeting at 116,500 VND/share (+28.7%).
Mirae Asset recommends a Buy Call for PDR
As MASVN puts it, the phrase “Breakthroughs built on sustainable internal strength” reflects PDR’s capabilities. Along with strong business results, MASVN analysts also give importance to PDR’s rational investment and development direction in embracing upcoming trends.
According to MASVN’s analysis, PDR currently owns more than 470 hectares of land bank across localities with high economic and tourism potentials such as Binh Dinh, Quang Ngai, Binh Duong, Ba Ria – Vung Tau, Phu Quoc, and Da Nang. This is considered an appropriate direction in the context of the stagnant real estate market in HCMC and positively changing land prices in peripheral provinces.
Besides, PDR is constantly expanding its business into potential business sectors. From 2020, the Company has officially made its debut in the industrial real estate segment with a 24-hectare logistics warehouse near Cai Mep International Terminal (Ba Ria – Vung Tau) with an expected investment of over VND 1,136 billion. At the same time, PDR is planning to increase the industrial land bank to nearly 6,000 hectares in Quang Ngai, Binh Duong, Dong Nai, Ba Ria – Vung Tau, and Da Nang.
Most experts, analysts, and businesses in the real estate industry agree that if the COVID-19 epidemic is under control, the market will recover strongly and vibrantly in late 2021. As one of the few real estate enterprises possessing a clear and specific business plan, a solid financial position, and an outstanding project implementation capability, PDR is fully equipped with the necessary foundation to confidently accomplishing all the goals set out in 2021 as well as conquering new milestones along the journey towards the “New Era of Prosperity” planned for the period 2021-2025.
In short, given the achieved business results, positive stock price movements, and increasing market capitalization, Phat Dat continues to affirm its leading position in the current real estate industry. In the future, the Company’s development prospects are strengthened by its ability to respond and adapt to new situations flexibly. The constant conduct of major M&A deals also enables PDR a solid premise for the increasing quality land bank in prime locations.
