The Highlights of An Gia’s Business Performance (AGG)

An Gia, a prominent real estate developer, has achieved remarkable success in its business operations. Their prudent and adaptable management strategy has allowed them to surpass revenue and profit targets, outperforming the overall market.

Exceeding Revenue and Profit Expectations

An Gia’s revenue for 2023 reached nearly VND 3.9 trillion, exceeding the annual target by 30%. Furthermore, the company’s post-tax profit of VND 175 billion exceeded the approved plan by 75% at the Annual General Meeting. The primary contributor to this success was the Westgate complex project in Binh Chanh, Ho Chi Minh City, which consisted of over 2,000 units.

Caption: Mr. Nguyen Thanh Son, the new CEO of An Gia

An Gia has also maintained a low debt-to-equity ratio and diversified their sources of capital. As of December 31, 2023, the debt-to-equity ratio was kept at a safe level of 0.51 times, and the bond-to-equity ratio was significantly reduced to only 0.11 times.

The company has consistently generated stable cash flow by timely project execution and successfully raised capital through bonds. In the past three years, An Gia has repurchased over VND 2 trillion worth of bonds. Currently, the company’s outstanding bond debt is approximately VND 314 billion, and it is expected to completely settle this debt in the first half of this year.

According to an An Gia representative, their ability to withstand market fluctuations lies in their focus on affordable housing that meets the real needs of the people. Moreover, their careful management strategy, which incorporates clear development milestones and diversified capital sources, has played a vital role in their resilience.

Continuous Mergers and Acquisitions for Land Expansion

An Gia views expanding its land bank as a consistent strategic priority. The company actively seeks opportunities for mergers and acquisitions, focusing on clean land projects that align with approved investment plans and are suitable for quick development and affordability. Currently, An Gia is conducting in-depth assessments of two promising plots of land in District 8 and Thu Duc, Ho Chi Minh City, with plans to introduce over 4,000 products to the market.

Caption: The Standard project developed by An Gia as low-rise residential housing

Previously, in 2022, the company acquired a 3.2-hectare land bank in Binh Chanh, expected to provide around 2,000 apartments. In addition, An Gia is currently in the final stages of negotiating the purchase of new land banks for the development of low-rise residential projects. The land bank development plan also includes accumulating resources for long-term objectives in the future.

To diversify their capital sources for project development, An Gia has strengthened investment cooperation with foreign organizations and investment funds from countries such as South Korea, the United Kingdom, Japan, and Taiwan. These investors participate by directly contributing capital to An Gia’s projects and becoming large shareholders to realize the strategy of developing mid-range and affordable housing.

Most recently, the Japanese partner, Koterasu Partners, signed a memorandum of cooperation and investment with An Gia, investing USD 10 million by purchasing An Gia’s subordinate shares. This partnership provides Koterasu with the option to directly contribute capital to The Gio Riverside project in Binh Duong.

Upcoming Project Launches

In addition to expanding its land bank, An Gia aims to proactively adapt to market fluctuations by transitioning their business management strategy from “prudent and adaptive” to “active and adaptable” in 2024. They will continue their commitment to the mid-range housing segment, catering to the real needs of buyers, offering products that can sustain market volatility.

The company has plans to launch The Gio Riverside project in Binh Duong, which has already been granted a credit limit of VND 2 trillion and will consist of approximately 3,000 apartments.

Caption: An Gia focuses on developing mid-range and affordable housing. Image: Westgate

“An Gia remains committed to the mid-range real estate segment, which consistently demonstrates positive absorption rates despite market fluctuations. Our perspective is to not chase the market, acquire land, or purchase projects at any cost. We carefully analyze land areas to ensure that product pricing aligns with the majority of buyers’ affordability,” stated an An Gia representative.

Alongside the launch of The Gio Riverside, the company aims to maintain a healthy debt-to-equity ratio, increase cash reserves, and prepare resources to proactively adapt to the “new landscape” of the real estate market.

Looking ahead five years, An Gia seeks to become a trusted real estate brand, focusing on developing large-scale mixed-use projects in Ho Chi Minh City and neighboring provinces. Their aim is to provide tangible value for customers, shareholders, and partners.

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