In recent years, Mai Vien Real Estate has experienced significant growth in profitability. The company saw a 14-fold increase in profit after tax last year, reaching over 213 billion VND, up from 15 billion VND the previous year. This is largely attributed to the successful operation of Cantavil Premier, a shopping center located in Ho Chi Minh City that has attracted well-known tenants such as Big C supermarket and Xiaomi technology company.
Mai Vien Real Estate’s success can also be attributed to its strong financial position. The company reported a 65% increase in equity, totaling nearly 543 billion VND, while liabilities increased by only 0.9% to nearly 814 billion VND. This resulted in a debt-to-capital ratio of about 1.5 times, which is considered low in the real estate industry.
The company’s ability to generate profits for two consecutive years is reflected in its average daily earnings of about 580 million VND. In addition, Mai Vien Real Estate issued a batch of bonds worth 600 billion VND in 2021 with an interest rate of 11.5% per year. They paid out an impressive amount of interest on this mobilization without any late payments reported by the Hanoi Stock Exchange (HNX).
Mai Vien Real Estate’s success can also be attributed to positive trends in the retail sector. According to CBRE, rental prices for retail properties in Hanoi and Ho Chi Minh City increased last year, with average rental prices in Ho Chi Minh City reaching nearly $240 USD per square meter per month. There has been an increasing demand for retail space from foreign brands due to limited supply leading to almost full occupancy of inner-city shopping centers.
Overall, Mai Vien Real Estate’s success and positive trends indicate a strong and profitable future for the company and the real estate market as a whole.
It is important to note that while Mai Vien Real Estate has experienced significant growth and profitability recently, it is important for investors and stakeholders to closely monitor their financial performance going forward and take into account potential risks and challenges that may arise within the real estate industry.
In conclusion, Mai Vien Real Estate has seen tremendous growth and profitability over the past few years due to its successful operation of Cantavil Premier shopping center attracting well-known tenants like Big C supermarket and Xiaomi technology company among others. The low debt-to-capital ratio reflects their strong financial position while positive trends in the retail sector further support their future growth prospects