PVMachino “snap” the opportunity to buy real estate during the economic crisis

Company information
icon date22/07/2023

The real estate market fluctuates, PVMachino wants to seize the opportunity to buy real estate and buy debt from a number of credit institutions, and at the same time transfer investment capital in some units.

Reason PVM seizes the opportunity to buy real estate

Grandfather Vu Duc Tien – Chairman of the Board of Directors PVMachino. In the past, the real estate – financial market has had many crises, many units and organizations have owned many bad debts and failed to pay debts, leading to the sale of many assets. , real estate at low prices.

On the other hand, Mr. Tien also said that the company’s acquisition of real estate at this time is quite attractive, moreover, we can own many advantages such as cheap prices, clear legal projects.

Moreover, this is a good project that can be further developed in the future, because the current amount of principal and interest cannot be completed, but we can buy it at an attractive price. This only happens in the current economic cycle, when there is a crisis.

Another issue raised at the Extraordinary General Meeting of Shareholders at the end of December 2022 was the approval of the policy of transferring investment capital in a number of units with contributed capital and other financial investments to supplement investment capital. capital for the Company’s business activities.

In which, the Board of Directors is authorized to decide the transfer price of the investment capital in each other financial investment unit/portfolio, including the case where the transfer price of the invested capital exceeds 35% of the total investment capital. the value of the Company’s assets in the most recent financial statements.

PVMachino opportunity in 2022

Mr. Vu Duc Tien – Chairman of the Board of Directors PVMachino stated that 2022 the company will mark the transformation of the operating model from state-owned enterprises to public ones.

If in the past, there were professions that wanted to do but could not do. This year is for the executive board to think and calculate their advantages.

On the other hand, the Company has a new shareholder, which is T&T Group – PV, and this has helped PVM have more advantages in the field of import and export, transportation, maintenance and repair. This is the problem that PVM aims to serve in this new ecosystem.

Mr. Tien said: “The shareholders also know that PVM has a real estate project in Dong Anh district so far we have only discussed it, but when there are new shareholders, the company can deeply participate in that project. , profits will also increase. Similarly, the subsidiary in Da Nang is the same.

Thus, both exploiting the immediate advantages of PVM and developing the ecosystem. If the project is feasible, we will have capital, we can get a bank loan or issue corporate bonds.”

Mr. Pham Van Hiep, Director PVMachino also talked about the addition of new business lines such as: food business, real estate, logistics …

Because according to Mr. Hiep’s assessment and company orientation, it is necessary to maintain the core business of trade – service – import and export. However, the management is looking for and exploring new strategic directions as PVM becomes a major importer and exporter in Vietnam.

The change is inevitable and required to register a new profession. The company will also delve into a number of projects such as real estate, industrial parks, investment in deep ports, seaports, logistics chains, waste treatment, investment in wind power plants, etc.

Therefore, the General Meeting of Shareholders approved the business plan reports for 2022 in an extraordinary meeting at the end of December 2022 to add new businesses, amend the Charter, and distribute profits in 2021…

2022 is the year of revenue PVMachino reached a consolidated peak of VND 1,200 billion, profit after tax reached VND 57 billion, an increase of 28% and 5% respectively compared to 2021.

At the same time, the company also deploys and develops more areas of: trade, intra-regional distribution for projects of T&T Group. Thereby, promoting the fields of trade and services; Expanding investment and business cooperation in the field of real estate…

In addition, the General Meeting of Shareholders also approved the business results in 2021 with revenue of 935.71 billion VND, profit after tax reached 54.09 billion VND, respectively achieving the set plan of 93% and 108%. As of December 31, 2021, equity reached VND 499.7 billion, up 1.6% compared to the beginning of the year.

Challenges encountered

A challenge that PVMachino is facing now is a cash flow problem. Specifically, in 2021, cash flow in business activities was negative 113.6 billion dong compared to the same period of negative 14.4 billion dong.

In addition, investment cash flow was positive 148.7 billion dong and financial cash flow was negative 35.1 billion dong.

As of December 31, 2021, total assets of PVM decreased by 15.3% compared to the beginning of the year to VND 814.8 billion. In which, the main assets are short-term receivables reaching VND 239.7 billion, accounting for 29.4% of total assets.

Currencies and short-term financial investments reached VND 196.7 billion, accounting for 24.1% of total assets; long-term financial investment reached 184.9 billion dong, accounting for 22.7% of total assets.

During the year, short-term receivables increased by 219.6% compared to the beginning of the year, corresponding to an increase of 164.7 billion dong to 239.7 billion dong and this is the reason for the negative main operating cash flow in the year. finance.

Despite facing challenges compared to opportunities PVMachino achieved, we see that the company is increasing its position in the Vietnamese and international markets.