Chairman of Phat Dat Real Estate Corporation (PDR): Hitting 30% profit growth at least in next 3 years

Solid foundation for  targeted 319%, revenue growth and capital mobilization measures as well as other keynotes were shared with the investors and mass media by the leader of Phat Dat Real Estate Development (PDR) in the afternoon of 27th March.

The meeting was held within the framework of the 2019 Annual Shareholders’ Meeting (ASM) arranged by PDR on 30th March in Ho Chi Minh City. Accordingly, the key focal points were the impressive revenue and profit targets. Particularly, the 2019 net revenue and profit before tax were projected to reach VND 9,000 billion and VND 1,000 billion, increased by 319% and 30.9% respectively, compared to 2018.

Despite facing myriads of challenges in the real estate market as well as from major players in the industry, it is strongly believed that Phatdat will successfully fulfill the set targets, Mr. Nguyen Van Dat, Chairman cum CEO, unveils.

Accordingly, this year is expected to obtain approximately VND 9,000 billion from 4 projects, including Phat Dat Bau Ca Project in Quang Ngai; Nhon Hoi Project in Binh Dinh and the EverRich 2 & 3 in HCMC. The 2019 revenue target is successfully fulfilled by the 4 aforesaid projects alone.

With the EverRich 2 & 3 (located at District 7, HCMC), the Company still continues fulfilling the legal procedures for transferring the project during the course of this year. The successful sales of Phat Dat Bau Ca Residential Area project, covering an area of 7.7 hectares, located right in the center of Quang Ngai City, were closed in April 2019. For Nhon Hoi Urban Area project of over 116 ha, the opening sales of Zone 4 is expected to launch upon completion of investment procedures and infrastructure construction while the auctioning procedures of the remaining zones are being carried out.

Moreover, a series of projects are launched such as Bac Ha Thanh Residential Area (Binh Dinh), covering the area of 55.7 hectares. The investment procedures, compensation for site clearance and master planning are being executed; 02 Phu Quoc-based projects, covering an area of nearly 180 hectares, are being executed within the framework of legal procedures and master planning.

“Currently, PDR has several projects with very high cash flow turnover, approximately within 06 months for investment capital turnover. Thus, PDR’s financial ground is solid for the period of 2021 – 2022. Obviously, the VND 1,000 billion profit before tax target is certainly within reach and the next 03 years will mark a minimum profit growth of 30%”, shared by the Chairman of PDR.

Regarding BT projects, Mr. Dat unveiled that BT contract for Phan Dinh Phung Sport Center located at District 3 is being signed preliminary while the Co Dai Project located in District 9 is under construction. Thus, Cu Lao Ba Sang land area, to be developed as an eco-tourism resort, is expected to be handed over as a result. For Thu Thiem Bridge Project (HCMC), the local authority has provided Phat Dat with 620-168 pre-development project studies. Thanks to that, Phatdat may obtain the bidding advantages.

The apartment market remains the key force of Phat Dat as unveiled by Mr. Dat. However, current market offers high cash flow turnover from landed property products, resulting in Phat Dat to diversify our product portfolio by penetrating to the non-HCMC markets such as Quang Ngai, Binh Dinh, Da Nang, etc.

The plan to issue new shares will be approved in the next meeting. Accordingly, a minimum of 20 million shares will be issued to call for investors looking to long term investment of 3-5 years time spectrum. Currently, Phat Dat is dealing closely with investors and this is expected to be completed within June.