Real estate businesses continue to lose money in the first quarter of the year

DNHN - The real estate market has not shown many signs of improvement, so the decline in housing business activity in the first quarter of 2023 is not unexpected.

Through the first quarter of 2023, a comparable number of businesses operating in the field of housing development continued to incur losses comparable to the fourth quarter of 2022, including several businesses that were continuing or forming their business lines. This is a clear indication that the real estate market is plunging into the worst crisis of the past decade.

The decline in housing industry business activity in the first quarter of 2023 is not unexpected. Therefore, it is not surprising that Financial Investment's first-quarter 2023 statistical analysis of 42 representative businesses reveals a landscape similar to the fourth quarter of 2022. There are 10 businesses with an increase in revenue and profit, 3 businesses with an increase in profit despite a decrease in revenue, 8 businesses with an increase in revenue but a decline in profit, 11 businesses with a decline in both revenue and profit and 10 businesses with a loss.

There are two notable companies among these 42 businesses. Novaland (HoSE: NVL) supplanted Dat Xanh (HoSE: DXG) in this position during the first quarter of 2023. In the fourth quarter of 2022, Dat Xanh (HoSE: DXG) drew attention with its first loss in ten years and impressive numbers. The second-largest real estate developer in the nation and the largest in the South reported the lowest quarterly revenue since the fourth quarter of 2016 (VND 604 billion, down 69% year-over-year) and a loss. the first significant loss since the announcement (loss before taxes of 87 billion dong, loss after taxes of 410 billion dong).

The second surprising name is Danh Khoi (HNX: NRC). In the first quarter of 2023, NRC had no income and a loss before taxes of 17 billion dong. In addition, this is the second consecutive quarter that NRC has posted a loss before taxes. Along with NRC, other businesses continued to record losses before tax such as DXG (-96 billion dongs, LDG Group - HoSE: LDG (-72 billion dongs), Licogi - UPCoM: LIC (-23 billion dongs), Binh Duong Sales and Development – HoSE: TDC (-39 billion dongs), Central Power Real Estate – HoSE: LEC (-7 billion dongs), Cen Land – HoSE: CRE (-9 billion dongs).

In addition, several other companies reported a decline in revenue and profit, including Dat Phuong (HoSE: DPG) with decreases of 28% and 49%, and BV Land (UPCoM: BVL) with decreases of 13% and 93%, respectively. %, Long Giang Land (HoSE: LGL) down 79% and 64%, First Real Real Estate (HoSE: FIR) down 33% and 58%, Hodeco (HoSE: HDC) down 56% and 68%, Hoang Quan (HoSE): HQC) down 39% and 79%, DRH Holdings (HoSE: DRH) down 45% and 93%, Third (HoSE: DTA) down 45% and 78%, Nam Long (HoSE: NLG) down 60% and 23%. 

Forecasts indicate that the real estate market will continue to be in a state of crisis for at least the next one to two quarters, or until changes in policy and interest rates significantly impact business activity. Karma.

Next quarter, businesses will rely on "dry wages," which include "short-term prepayments" and "unrealized sales." By examining these two factors, the business landscape of the second quarter of 2023 can be visualized.

The following companies reported a decline in "short-term prepayment": VIC (VND69,296 billion, down 7%), VHM (VND56,809 billion, down 18%), NVL (VND18,091 billion, down 38%), LDG (VND14,433 billion, down 25%), NLG (VND11,300 billion, down 12%), DXG (VND11,153 billion, down 23%), DPG (VND6,520 16%).

Many businesses have recorded a decline in "unrealized revenue" in the first quarter of 2023, for example, NVL (VND 2,000 billion, down 91%), and DXG (1,300 billion VND, down 48).%), TCH (320 billion dong, down 56%), DPG (250 billion dong, down 67%), CCL (110 billion dong, down 91%), LIC (90 billion dongs, down 41%), FLC (30 billion dongs, down 99%), DTA (20 billion dongs, down 83%), NRC (12 billion dongs, down 60%).

Some businesses, such as BVH (VND 4,000 billion, up 24%), HQC (VND 2,400 billion, up 63%), and HDC (VND 1,900 billion, up 63%), have seen an increase in "unrealized revenue." VND, up 12%), NLG (1,100 billion VND, up 62%), DRH (1,000 billion VND, up 150%), BSR (630 billion VND, up 44%), CNG (200 billion VND, up 11%).

The decline in business activities of real estate companies remains a significant obstacle in the short term. To save the situation and stimulate the market's recovery, it will require the assistance of suitable policies and measures. Hopefully, the real estate market will recover and regain stability and sustainable growth shortly.

PV (t/h)