Hai Phat Investment Joint Stock Company (HPX) has just announced its business plan in 2019 with a high profit growth rate of 59.3%, comparison with the previous year. In addition, Hai Phat run new projects on nearly 520 ha land area. This is considered to be the “push” to create the support to continue high growth in the following years.
In 2019, HPX sets a target of net revenue of 4,294.2 billion dong, parent company’s net profit of 720 billion dong, up 59.3% compared to 2018. Earnings per share in 2019 (EPS) is expected at 2,504 VND/share.
According to the business results report of SSI Securities Company of 2018, the profits of businesses listed on all three stock exchanges in Ho Chi Minh City, Hanoi and UPCoM, the real estate industry leads the profit growth with an increase of 75%, mainly due to the sudden profit from Vinhomes Joint Stock Company (VHM). If excluding VHM, the profit of the whole industry would rise to 22.8%.
Particularly, Hai Phat, in 2018, reached VND 452,3 billion consolidated after – tax profit, an increase of approximately 40% compared to the year earlier. This level of profit achieved in the business environment in 2018 faced many difficulties, challenges and impacts from many objective reasons. Thanks to the spirit of initiative, creativity and setting the target, Hai Phat Invest focused on successful implementation and handover of some major and key projects in Hanoi in 2018 such as: Roman Plaza, Thuan An Cetral Lake, Phu Luong, The Vesta etc.
In 2018, the financial capacity of HPX was significantly improved with the increase of the charter capital to VND 1,999.99 billion; increase the total equity of the Parent Company to VND 2,538.6 billion; increased total assets to 7,459.3 billion dong.
In 2019, HPX put the consolidated after – tax profit of VND 720 billion, up 59.3% compared to 2018, equivalent to an absolute increase of VND 267.7 billion. When business goes up at a much larger scale than before, maintaining the growth rate of nearly 60% per year is really a big challenge.
The information at the beginning of the General Meeting of Shareholders shows that listed real estate businesses put the profits under or equivalent that in 2018, reflecting the prudence of real estate businesses under unresolved difficulties in the 2019’s real estate business environment in Vietnam.
Due to the common trouble of the market, investors put the question of growth picture of Hai Phat Invest. What will the business do in order to maintain double – digit growth in the following years?
To prepare well for its ambitious development plan, HPX expects to issue VND 4,000 billion bonds, including VND 1,000 billion convertible bonds in 2019. The total financial needs in 2019 is 8,590.9 billion which implement investment preparation, project development, debt repayment, investment cooperation, M&A, transferring contributed capital ,etc. Beside on-going projects from the previous year such as Phu Lam Social housing, Roman Plaza, Phu Luong EIA, new projects are 11,379 billion VND investment with 19.84 ha total scale area and 25.18 km. After preparing stage finished, the projects commence and implement such as: SUNSHINE HILL Villa project (7.4 ha) located in Phan Thiet City, Binh Thuan Province; Villa project (5ha) in Phu Hai Ward, Phan Thiet City, Binh Thuan; Ha Dong BT project (Road projects and Duong Noi Residential Area Project, Kien Hung Apartment), Southern Highway BT Project in Ha Tay Province (Phase 2 Road Project) and some landuse right auction projects.
In the long-term vision to 2020 and the following years, Hai Phat will continue to complete the following investment preparation procedures to build a solid legal basis for the 7,395.16 ha total land with 48.181,5 billion VND: Dong Quang Project; South West An Khanh Project; Ha Dong BT counterparts project; My Hung Project ( Reciprocal BT project in the southern road of former Ha Tay province); Ham Tien – Mui Ne Tourism Service Center Project, Binh Thuan Province; The new Urban of South of Bim Son; Projects in Can Tho City and some landuse right auction projects. Aspiration is that to carry out big project across whole country, Hai Phat invest want to send a message as large – scale enterprise’s message: “We always change to break through in new era”. HPX will not only stop at implementing small and medium- sized projects in Hanoi, but also cooperate with major domestic and foreign partners to carry out medium – high scale projects in whole country based on basic principles on sustainable development. Hai Phat Invest is making its mark in the segment of industrial real estate, resort real estate, high- tech agricultural auxiliary infrastructure, in parallel with the strength of high- rise and low –rise real estate development.
From 2008 to 2012, Hai Phat Invest emerged thanks to the ability to break the market with the breakthrough strategies in affordable housing products when the real estate market froze. Hai phat Invest met the needs of the majority of citizens. With the view of sustainable development, considering customers as the center, real estate products gradually improved and affirmed the prestige brands of investors who dare to change to break
Investors as well as customers are waiting for a big breakthrough in Hai Phat Invest at this time, when the real estate market is showing the signs of slowing down.