The Dong Nai-based Industrial Urban Development JSC No 2 (D2D) expects post-tax profits in 2020 to slump by 51.5 per cent year-on-year to VND178.7 billion (US$7.7 million). — Photo cafef.vn

The Dong Nai-based Industrial Urban Development JSC No 2 (D2D) expects post-tax profit to slump by 51.5 per cent year-on-year to VND178.7 billion (US$7.7 million).

D2D also estimates that revenue this year will fall by 49 per cent to VND414 billion.

In 2019, D2D recorded net revenue of VND763 billion and post-tax profit of VND368.5 billion, 2.7 and 4 times higher than in 2018, respectively.

The company attributed the sudden slump to the investment efficiency of the Loc An KDC project in Long Thanh District.

Sonadezi Long Thanh Holding Company (SZL), also in Dong Nai, has revised its revenue target in 2020 to VND409 billion, down 4 per cent year-on-year, and post-tax profit of VND87 billion, down 16 per cent compared to 2019.

Sonadezi Long Thanh has authorised its board of directors to adjust its business plans to match the complicated developments of COVID-19. However, shareholders will need to be advised if the targets fall by more than 30 per cent.

Tin Nghia Industrial Park Development JSC (TIP) expects its revenue to reach VND166 billion, down 24 per cent against 2019, and pre-tax profit to touch VND93 billion, down 19 per cent year-on-year.

TIP said this year the company will face difficulties regarding slow and complicated administrative procedures, higher costs for compensation and site clearance, and less FDI due to COVID-19.

SONADEZI Chau Duc Shareholding Company (SZC) has also forecast post-tax profit of VND115 billion, down 14 per cent.

The COVID-19 pandemic is becoming increasingly complicated, SZC’s Board of Directors said, and that the company's investment attraction will be negatively affected.

In 2020, revenue from industrial land leasing, factory leasing, management fees and industrial infrastructure services is estimated at VND282 billion. The company is also continuing the construction of the Chau Duc Urban Industrial Park and Golf Course.

Higher profit

Among the industrial park operators suffering the severe impacts of the pandemic, some still expect a higher profit in 2020.

Phuoc Hoa Rubber JSC (PHR) has forecast total revenue of VND2.46 trillion, an increase of 52 per cent, and pre-tax profit of VND1.15 trillion, double the figure in 2019.

The board of directors at PHR said it would respond to each specific scenario during the COVID-19 pandemic.

The company will also restructure projects it has invested in, including Truong Phat Rubber JSC and Phuoc Hoa Kampong Thom Rubber Development Co Ltd.

According to Viet Dragon Securities Co, PHR's industrial parks were located in the most favourable locations in Binh Duong Province so rental rates are expected to remain high, at around US$60-80 per metre square in Tan Binh and $90 per metre square in Nam Tan Uyen.

Rental demand is expected to continue to increase as FDI in Vietnam, and in particular Binh Duong Province, is still rising, making the industrial zone segment a key driver for PHR.

However, these comments were made by VDSC before the COVID-19 pandemic.

Vinh Phuc Infrastructure Development (IDV) aims to earn VND264 billion in revenue, and VND151.6 billion in post-tax profit, up 62 per cent and 54 per cent, respectively, compared to 2019.

Remarkably, thanks to the large profit made by its subsidiary VPID Ha Nam, IDV's revenue and profit in Q1 reached VND109 billion and VND60.6 billion, respectively.

These earnings in Q1 fulfilled nearly half of the target set for 2020.

This year, IDV plans to increase investment attraction at the Chau Son Industrial Park, and focus on expanding the Khai Quang Industrial Park and developing new industrial park projects. VNS

Large-cap firms report at least US$130 million in pre-tax profit

Most large-cap firms have released full-year earnings reports for 2019 with 29 companies reporting a pre-tax profit of more than VND3 trillion (roughly US$130 million).

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