Vinhomes, trading under the ticker VHM on the Ho Chi Minh Stock Exchange, is the real estate development subsidiary of Vingroup, Vietnam’s largest conglomerate. Established in 2008, Vinhomes specializes in the development of residential, commercial, and mixed-use properties, focusing primarily on high-end, integrated urban townships.
In the first half of 2024, VHM’s revenue and net profit after tax achieved US$1.2 billion and US$467.4 million, down 41 percent and 47 percent year-over-year, respectively. This decline was due to fewer project handovers compared to the previous year.
However, in the first half of 2024, VHM had a backlog of unbilled bookings totaling US$4.8 billion, primarily from major projects such as Royal Island in Hai Phong and Ocean Park 2 and 3 in Hung Yen.
VHM has also said it is “near finalization” on two potential transactions with a total value of approximately US$1.63 million, per the earnings presentation of VHM in the second quarter of 2024. Further information on these deals has not yet been disclosed.
According to reports by CBRE, in the second quarter of 2024, average selling prices of condominiums in the primary markets of Hanoi and Ho Chi Minh City reached approximately US$2,438 and US$2,560 per square meter, reflecting a year-over-year increase of 25 percent and 6 percent, respectively. Furthermore, they are expected to rise by approximately 22 percent and 5 percent year-on-year by the end of 2024.
In the second half of 2024, VHM will continue to recognize revenue from projects such as Vinhomes Global Gate in Hanoi, Vinhomes Royal Island in Hai Phong, and others in neighboring provinces. With the anticipated sharp rise in condominium prices, particularly in Hanoi, the company could achieve better business results.
Disclosure: The author does not have any financial interest in VHM stock.