DIG GROUP ANNOUNCES AUDITED FINANCIAL STATEMENTS 2019 WITH NET PROFIT OF VND 391 BILLION

Development Investment Construction Corporation (DIC Group, HOSE: DIG) has just announced its audited financial statements in 2019 with net profit of VND 391 billion, up 21% from the previous year.

At the end of the fiscal year 2019, according to the Consolidated Financial Statements, DIG brought VND 471 billion in profit before tax, an increase of more than 10% compared to the previous year, thereby fulfilling 86% of the yearly profit plan. DIG's 2019 net profit also increased by nearly 21% to VND 391 billion. In fact, thanks to the strong growth of Q4 / 2019 business results with 19% increase in net revenue, 11% increase in financial income, DIG's net profit in Q4 / 2019 is 70% higher than the same period, reached VND 329 billion, equivalent to more than 84% of the Company's total net profit for the year.

DIG audited consolidated business results in 2019. Unit: VND billion.

Source: DIG audited consolidated financial statements 2019.

In the revenue structure, real estate is still the core business that contributes most of DIG's revenue. Specifically, net sales in 2019 reached VND 2,156 billion. In particular, real estate transfer revenue reached VND 1,443 billion, accounting for 67% of the revenue structure thanks to the transfer of DIC Phoenix Apartment (Vung Tau City); Gateway Vung Tau Apartment (Vung Tau City) and transfer of LUR of Nam Vinh Yen New Urban Area project (Vinh Phuc Province).

In addition, DIG's revenue from financial activities in 2019 also maintained a good growth rate, reaching VND 197.5 billion, an increase of more than 27% compared to 2018. In which, the completion of 7.9% divestment in capital was recorded at Vina Dai Phuoc JSC, earned 230 billion dong, equivalent to over VND 100 billion of profit.

Due to the general difficulties of the real estate industry, DIG's net revenue dropped by nearly 10% compared to 2018. However, the compound annual growth rate (CAGR) of DIG's net profit in the last 5 years (since 2015) has reached 147%. As of December 31st 2019, DIG's total assets reached VND 8,197 billion, an increase of 20% compared to the end of 2018.

Changes in business results of DIG in the period of 2015 - 2019. Unit: VND billion

Source: Vietstock Finance

After the audit, the net revenue and net profit of the parent company (DIC Corp) increased slightly mainly because the Audit has adjusted according to the final settlement of corporate income tax of VND 6.85 billion.

DIG’s Parent company revenue and profit before and after the 2019 audit. Unit: Dong

Source: DIG audited financial statements 2019

With a transparent financial situation, the business plan of 2020 continues to maintain the growth momentum and the advantage of a large land fund, DIG's representative affirmed that the company's stock price does not fluctuate correlated with the business results. In addition to the purpose of maximizing benefits for shareholders and stabilizing market prices, buying treasury stocks, reducing the number of outstanding shares is also a way for businesses to increase profitability per share, make annual business results can be evaluated in a better perspective.

Thereby, in order to maximize benefits for shareholders and the company as well as affirm its financial potential, DIC Group is publicly offering 15 million DIG shares (equivalent to nearly 4.8% of the total number of outstanding shares) via order matching method on the stock market, the trading time is scheduled from March 27th to April 25th 2020. Capital source is taken from undistributed after-tax profit, capital surplus and other funds of enterprises.

In fact, DIG is not the only enterprise to "rescue" the stock in the complicated situation of the Covid-19 epidemic. According to Vietstock's statistics, in the past two months (as of March 31st), there have been 251 million shares planned by businesses to buy back as treasury shares, equivalent to the total amount of money spent up to nearly VND 4,004 billion.

In recent days, DIG shares are rebounding slightly with trading volume exceeding MA20 since DIC Group started buying treasury shares (from March 27th). It can be seen that the buying of treasury stocks has partly positively affected the psychology and confidence of investors in the Corporation.

Currently, DIG is trading at VND 11,050 / share (end of 6th April trading session), the average trading volume reached 875,447 shares / session in the last 1 year.

DIG stock price movements from 2019 to the present.