VNDirect believes that large wood companies will benefit from the recovery of the real estate industry, the number of new apartments in Ho Chi Minh City and Hanoi has increased significantly.
In the wood industry report, VNDirect Securities JSC said that the prospect of the real estate industry is becoming the main growth engine for companies producing wood and wood products in the domestic market.
Accordingly, the real estate market will recover strongly in 2022, investors will focus on promoting sales activities to improve cash flow.
This is reflected in the prospect of sales of listed real estate companies in 2022, typically with Khang Dien Housing Trading and Investment JSC (Code: KDH) increasing 14 times over the previous year. In 2021, Dat Xanh Group Joint Stock Company increased by 4 times, Nam Long Investment JSC increased by 105%…
VNDirect expects the supply of new apartments in Ho Chi Minh City to recover strongly from 60-70% in 2022-2023, supported by new regulations to remove legal bottlenecks such as Decree 148 and the Construction Law. revised 2020.
CBRE – the world’s largest real estate company said that the supply of new apartments in Ho Chi Minh City in 2022 will recover 69.5% compared to 2021 to 22,000 units and increase 56% to 34,000 units in 2023, of which Mid-end segment increased again, accounting for 30-50% of total apartment supply.
Similarly, in Hanoi, VNDirect believes that the large projects of Vinhomes will help the supply of new apartments increase by 40-50% in 2022-2023 to 25,600 – 36,000 units.
The vibrant real estate market will help wood and wood product manufacturers to have more orders and a stable customer base.
According to statistics of the General Department of Forestry, the wood and furniture industry has 115 enterprises directly producing wood, of which 53 are FDI enterprises.
An Cuong Wood Joint Stock Company is the largest manufacturer of engineered wood in the country with about 55% market share. Some other big players include AICA Dong Nai, Casta and VRG Dongwha…
In addition, a number of other enterprises such as Minh Long, Moc Phat, Thanh Thuy… are small wood producers and occupy a negligible market share.
Meanwhile, the major players in the finished products and furniture segment include An Cuong wood, Truong Thanh wood, AA Group and The One furniture company. In which, An Cuong wood has the highest revenue and net profit compared to other companies in the industry.
VNDirect expects that leading wood manufacturers with a large customer base such as An Cuong and Truong Thanh will take advantage of the recovery of the residential real estate market.
T&G Import-Export Joint Stock Company
Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi
Hotline: 02473010868
Email: hrm@tginterjsc.com
Website: http://tgimportexport.com
