Realty stocks experience remarkable growth amid market optimism


One standout case is LDG Investment JSC (LDG), whose stock price has soared from VNĐ2,670 (US$0.1) to an impressive VNĐ7,070 over the past few weeks, achieving a ceiling price increase for 11 consecutive sessions. 

An apartment project built by LDG Investment in Thủ Đức City. — Photo courtesy of the company

HÀ NỘI — The real estate sector in the stock market has seen a significant surge in stock prices since late June. 

This rally has not only affected financially robust companies but has also seen struggling firms, some under audit scrutiny, record dramatic price increases.

One standout case is LDG Investment JSC (LDG), whose stock price has soared from VNĐ2,670 (US$0.1) to an impressive VNĐ7,070 over the past few weeks, achieving a ceiling price increase for 11 consecutive sessions. 

Despite these gains, LDG's financial health raises questions. The company reported just VNĐ3.3 billion ($126,100) in cash while carrying substantial debts of VNĐ893 billion and cumulative losses of nearly VNĐ1.4 trillion, amounting to 53 per cent of its charter capital.

The company has ambitious plans for 2025, projecting a revenue of over VNĐ1.8 trillion and a net profit of VNĐ91 billion. However, these targets appear lofty given its recent performance, where it only achieved VNĐ173 billion in revenue last year, resulting in a net loss of nearly VNĐ1.51 trillion.

The property developer attributes the stock's performance to market dynamics, stating it reflects investor optimism. However, the underlying financial concerns persist, especially as the auditing firm Moore AISC raised critical points about LDG's ability to continue operations.

Similarly, Danh Khoi Group JSC (NRC) saw its stock price rise by 32 per cent in the first half of July, climbing from VNĐ4,600 to VNĐ6,600. 

The company, which also faced significant losses last year, is now attempting to bolster its finances by issuing over 92.5 million shares at a par value of VNĐ10,000 each to restructure its capital and reduce debt.

Amid these fluctuations, Hoang Quan Corporation (HQC) has also experienced a robust increase, with its stock rising from VNĐ3,200 to VNĐ4,030. 

Although HQC reported a 277 per cent increase in revenue for the first quarter of 2025, rising management costs still hindered its profitability, raising concerns about its long-term viability.

Market analysts note that several other real estate stocks, including Novaland (NVL), Dat Xanh Group (DXG), and An Gia Real Estate Investment and Development Corporation (AGG), have also seen substantial increases since late June. 

According to SSI Research, in early July, there are 20 residential real estate stocks listed on the Ho Chi Minh Stock Exchange (HoSE) that have recently outperformed the VN-Index.

These stocks share a common trait: they belong to companies that own significant clean land banks, have made strides in legal compliance, or are entering the project launch phase.

Data from Guotai Junan Securities indicates that across all three exchanges, the average increase in real estate stocks since the beginning of the year stands at 19 per cent, surpassing the VN-Index’s growth of 17.4 per cent.

Notably, several stocks that previously experienced substantial gains have returned to their par value, including NVL and Dat Xanh Real Estate Services JSC (DXS).

BIDV Securities Company (BSC) has also issued a positive outlook for the real estate sector. BSC foresees a promising future for the industry, particularly in relation to the provincial merger initiative, which serves as a structural catalyst for the real estate market in the medium to long term. 

The overall impact can be assessed through three key dimensions: infrastructure, planning and institutional frameworks, based on both domestic and international best practices.

Hoàng Kim Hoài, CEO of Phuc Dien Land, told Tiền Phong that the recent surge in real estate stocks reflects positive signals from the market. Particularly, the National Assembly has approved resolutions facilitating the resumption of stalled real estate projects and promoting social housing development.

Additionally, a number of investment projects have received approvals for planning and construction permits in late 2024 and early 2025.

Nonetheless, Hoài advises investors to choose wisely and closely monitor the key projects of their target real estate companies before making buy or sell decisions. 

While the overall market appears strong, not all real estate stocks are equally viable for investment. — BIZHUB/VNS

 

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