SERIES OF HANDOVER PROJECTS, HAI PHAT INVESTOR EXPECTED TO CARRY INTEREST OF 280 BILLION IN THE LAST 6 MONTHS OF THE YEAR

With the progress of projects being secured, from now until the end of the year, Hai Phat Invest is confident to record net interest of over 280 billion VND in the second half of 2018, and complete beyond the plan set at the General Meeting earlier this year.

That was the main content at the meeting of analysts and investors, updating the business results and the progress of projects of Hai Phat Investment JSC (Stock code: HPX) taking place in the last afternoon September 20th.

Ensuring completion of profit plan of 450 billion

Update the results of business operations in the first 6 months of 2018, Mr. Doan Hoa Thuan, General Director of Hai Phat Invest said, in the first 6 months, there were positive figures with net revenue at the level of 507,7 billion VND, of which revenue from real estate business was 489,3 billion VND; Profit after tax reached VND 170.1 billion, complete approximately 40% of the annual plan.

In the first half of the year, because some projects are in the process of being deployed, Hai Phat Invest is not eligible to account for revenue results. With the speed of implementation of the project is ensured according to schedule, it is expected that in November and December, Hai Phat Invest will simultaneously record revenue and profit when projects are handed over to customers.

Specifically, in the second half of the year, the company expects to record 280 billion VND  in after-tax profit from projects such as Phu Luong new urban area, Trau Quy low-rise building (trade name is Thuan An Project ), the low-rise building of the Roman Plaza project and The Vesta project.

Hai Phat Invest management board answered questions of investors

Mr. Thuan shared that Trau Quy project has finished selling 140 adjacent houses, while 59 low-rise houses and more than 50% of total apartments at Roman Plaza project have been completed. In addition, 90% of the apartments allowed to do business in The Vesta project (including commercial and social housing) have been finished.

Hai Phat Invest’s Board of Directors also said that with the positive end of the year, coming on September 29, Hai Phat Invest will continue to open selling the next phase of the Roman Plaza project.

With guaranteed quality, harmonious design and cost in accordance with the current market demand, Hai Phat Invest’s Board of Directors are confident that Roman Plaza will bring good results for shareholders and investors.

Besides, Mr. Thuan also disclosed that joint-venture companies, affiliates, subsidiaries are also deloying 3 other projects in Hanoi, they are 105 HPC Landmark, Hanoi Homeland, Bea Sky with a total investment of  3,722 billion VND.

In there, Hanoi Homeland project according to the latest sales results has successfully implemented 80% of the bases after only 5 months of market launch, and is one of the projects with the best sales speed from the beginning of the year until now.

Is stock under valuation?

In response to questions from shareholders and investors regarding future plans, the Board of Directors of Hai Phat Invest said that according to the 5-year plan, Hai Phat Invest estimates to achieve a half of a billion USD in revenue in 2022 , nearly 4 times higher than the 2018 plan.

The basis for this plan includes not only ongoing real estate projects but also resort real estate projects, industrial real estate, M&A, financial investment and project transfer.

Regarding capital mobilization, Hai Phat Invest plans to issue 1,000 billion VND of bonds to serve the implementation of projects, M&A for the period of 2018, 2019 and the following years.

Currently, the company has mobilized  240 billion VND within 1,000 billion VND and the rest will continue to be deloyed in the near future.

Regarding capital raising issue, in 2018, Hai Phat Invest will increase its capital from 1,500 billion VND to 2,500 billion VND in 2 phases.

The first phase is from 1,500 billion VND  to 2,000 billion VND, company will issue bonus shares and dividends payment by shares. The company is currently submitting to the UBCK about a 15% bonus split and hopes to complete it in October.

At the end of this year, Hai Phat Invest will continue to raise capital to 2,500 billion VND according to the suitable plan approved by the General Meeting of Shareholders.

Shareholders questioned Hai Phat Invest’s first 6 months business results and plan for the last 6 months.

With the clear information of project implementation plans, the Board of Directors of Hai Phat Invest said that shareholders can fully believe this HPX share will grow strongly in the near future when the current stock prices is lower than the true valuation of stocks.

According to the Board of Directors, HPX is also a small number of enterprises which are holding 15% of the shares of Dragon Capital Fund (DC) with a long-term commitment, besides the big ones like VHM, NVL, KDH, DXG, DIG, HDG, HPX, CRE …

Being held by DC is really not easy, which requires businesses to create a land fund (with a favorable position, with a reasonable cost of capital) and have the ability to implement the project on schedule, quality, ensure full after-purchase services as well as good risk management and HPX can meet those criteria.

Although newly listed for 2 months, the level of HPX liquidity have also maintained quite well, showing the interest of investors. Expectedly, HPX liquidity will continue to improve when being granted margin in the coming time.

(According to Viet Trang of Tin nhanh Chung Khoan: https://tinnhanhchungkhoan.vn/doanh-nghiep/hang-loat-du-an-ban-giao-hai-phat-invest-du-kien-lai-280-ty- in-6-thang-cuoi-nam-242392.html)