The Netland Real Estate JSC (Stock code: NRC) has approved its 2019 business plan, with revenue to reach over $15 million and after-tax profit $4.72 million, increases of 98 per cent and 52.5 per cent against 2018, respectively. The dividend is expected to range from 10 to 30 per cent.
If its plans are exceeded, the Board of Directors will receive 10 per cent of the excess and staff and the executive board also 10 per cent.
NRC recorded revenue of $1.31 million in the first quarter of 2019, including $859,000 from its investment cooperation in The Panorama Villas (Haborizon Nha Trang) project and from brokerage services. After-tax profit of shareholders of the parent company was about $444,000.
It remains focused on pushing merger and acquisition (M&A) activities to acquire a large land bank. Leaders said the company will focus on the land bank on the Mui Ne beachfront in Phan Thiet city, south-central Binh Thuan province, where it hopes to secure about 40 ha, southern Dong Nai province, with 50 ha, southern Ba Ria Vung Tau province, with 30 ha, the Mekong Delta’s Long An province, with 30 ha, south-central Nha Trang city, with 20 ha, and, in particular, Ho Chi Minh City, with 35 ha. With such a land bank, Netland would have the resources needed to grow in the next two or three years.
Along with plans for its land bank, Netland continues to cooperate with domestic and foreign partners to increase products and raise its position.
In the first half of 2018, NRC agreed to terms with Sanei Architecture Planning from Japan as a strategic partner, which currently has about 18.75 per cent of capital, and G-7 Holdings INC from Japan as a strategic shareholder, with a 5.1 per cent share. Mr. Le Thong Nhat, Chairman of NRC, revealed that Netland would also shake hands with another major partner from Japan – a billion-dollar listed company on the Tokyo and Jasdaq stock exchanges.
Under its plan, NRC will invest heavily in developing a retail network system and building a database of over 100,000 potential customers and more than 10,000 regular clients. It now holds 95 per cent of capital in Danh Khoi Real Estate, which has a brokerage market share in the top 3 in Vietnam’s south.
In order to supplement capital for M&As, strategic cooperation, and project development, NRC’s Board of Directors has prepared a proposal for issuing a maximum of $12.9 million of individual bonds to less than 100 investors with a value of $4.29 per bond and a maximum term of five years, with an expected placement time within this year.
Mr. Nguyen Huu Quang, Deputy General Director of NRC, said the two placements must be six months apart under regulations. It finished issuing 9 million shares on April 16, of which 99.93 per cent were sold. The Board found that the capital raising process was not timely, so the bond issuance plan was set for this year.
NRC posted $7.6 million in net revenue last year, of which its brokerage business earned $4.8 million, or 63 per cent. After-tax profit was more than $3.1 million. It will provide a dividend payment of 5 per cent in cash and 15 per cent in shares, which will be implemented in the third quarter of this year.