The Industrial Urban Development Joint Stock Company No.2 (D2D) has seen its share price go up by 57 per cent from VND36,300 (US$2) at the beginning of the year to VND56,900 ($3)on October 4 on the HCM City Securities Market (HOSE).
The Industrial Urban Development Joint Stock Company No.2 (D2D) has seen its share price go up by 57 per cent from VND36,300 (US$2) at the beginning of the year to VND56,900 ($3)on October 4 on the HCM City Securities Market (HOSE).
D2D is engaged in development of real estate and infrastructure projects at the Nhon Trach Industrial Park No.2 in Dong Nai Province.
Another share to surge was the Nam Tân Tuyên Industrial Park Joint Stock Company based in Bình Dương Province: Its price more than doubled in the period from VND35,000 to VNĐ73,200.
The Vĩnh Phúc Infrastructure Development Joint Stock Company rose from VNĐ45,000 in early August to VNĐ65,000 just a month later.
Market observers said shares of companies involved in industrial parks have appreciated sharply in the last nine months, with many of them reporting big profits.
The Kinh Bắc Joint Stock Company, the owner of eight industrial parks, including Tân Phú Trung, Quế Võ, Quang Châu and Tràng Duệ, achieved after-tax profit of VNĐ420 billion ($18.5 million) in the first haft of 2016, a year-on-year increase of 67 per cent.
The Long Hậu Joint Stock Company, the owner of the Long Hậu Industrial Park, reported profits of VNĐ39 billion ($1.72 million) in the first six months on 2016, up 56 per cent.
The Tin Nghia Industrial park Joint Stock Company’s profits rose 50 per cent to VND33.5 billion in the first half of this year.
Analysts said the sharp rise in foreign direct investment (FDI) this year has been an important factor in pushing up the prices of IP developers’ shares.
According to the Ministry of Planning and Investment, in the first nine months of the year new FDI coming into Vietnam was worth US$25.48 billion, up 34.3 per cent over the same period last year, of which $12.5 billion has been disbursed, up 13.4 per cent.
Importantly, of the amount, US$183.5 billion went into processing and manufacturing businesses, which are mainly situated in industrial parks.
For instance, many new FDI enterprises like Luxshare ICT and JA Solar have become tenants of Kinh Bắc Company’s industrial parks this year.
The industrial park operators’ policy of steady dividends is also considered a strength.
(Source:VNS)
