New taste of Dragon Capital with real estate stocks

In addition to banking sector, Dragon Capital always has a special interest in real estate. From the end of 2017 until now, most of the new investments that Dragon Capital has made are real estate enterprises, typically VinHomes, Hai Phat Invest (HPX), CENLand, etc.

Thanks to the investment in the real estate, by the end of June 2018, this sector has surpassed the bank to become the industry group with the largest proportion – reaching 27.34% – in the investment portfolio worth 1.5 billion USD of Vietnam Enterprise Investment Limited (VEIL), the largest investment fund managed by Dragon Capital.

If VinHomes is a difficult trade to ignore due to the large scale in the real estate industry, the remaining investments such as Hai Phat (HPX), CENLand or Van Phu Invest can be considered as the new “taste” of this investment fund because these all are large real estate enterprises based in the North.

For a long time, the portfolio of Dragon Capital is mostly real estate investors in the South such as Khang Dien, Dat Xanh, Becamex IDC, DIC Group … Some investors in the North are also aimed at by this investment fund like Ha Do or Sudico, the investment value is quite small, only a few million USD.

Meanwhile, Hai Phat Invest is the fifth largest amount in real estate industry of Dragon Capital. After listing, the value of this investment can reach nearly 40 million USD.

Hai Phat HPX shares will be officially traded on HOSE on July 24 with reference price of VND 26,800. At this price, Hai Phat’s market capitalization reached more than VND 4,000 billion. After going to the floor, Hai Phat is expected to increase its capital from VND 1,500 billion to VND 2,500 billion to increase its financial capacity.

The investment of Dragon Capital in Hai Phat at the end of 2017 can be considered that it is at the right time before this enterprise enters a period of strong growth. In 2018, Hai Phat expects to achieve 450 billion dong of after-tax profit, up 38% compared to 2017 with the main expected revenue from Hai Phat Plaza (Roman Plaza), Phu Lam Social Housing Project. (The Vesta), Phu Luong new urban area project in Ha Dong district – Hanoi and Trau Quy auction land project in Gia Lam district – Hanoi. In 2019 and 2020, Hai Phat expects high profit, 720 billion and 950 billion dong, respectively.

After a long time concentrating only in Hanoi area, this year Hai Phat will expand into resort real estate in Da Nang, Nha Trang and Binh Thuan, and find opportunities in other provinces. In addition, Hai Phat Invest will focus on the land plot segment of developed provinces and cities, close to major cities under the central government through forms of auction, purchase and merger, etc. With the policy of focusing on fast-moving land and real estate products, Hai Phat is confident that it can achieve and exceed the production and business plan set out, simultaneously, comprehensively cumulatively focus on longer-term projects and creating a breakthrough for the Company when listed. The medium and long-term strategy of this enterprise shows the strong and sustainable development. And perhaps this is the factor that made Dragon Capital strongly invest in Hai Phat Invest.

Among the businesses invested by Dragon Capital in early 2018, there is also Century Real Estate JSC – CENLand. Unlike HPX which is specializing in project development, CENLand is an enterprise specializing in real estate brokerage. CENLand also applied for listing registration at the same time with Hai Phat but has not yet decide the time.