When the COVID-19 pandemic breaks out once again causing uncertainty to the real estate market, the Board of Directors of Hai Phat JSC affirmed our top priority goal is promoting the implementation of projects on the available land fund, and simultaneously restructuring and stabilizing the business model.
According to the document of the Annual General Meeting of Shareholders in 2021, Hai Phat Investment Joint Stock Company (Hai Phat Invest) announced a consolidated revenue plan of 1,500 – 1,600 billion VND, of which the parent company is about 1,000 – 1,500 billion VND. Along with that, the profit after tax of Hai Phat Invest is also expected to reach VND 370 – 390 billion, of which, the parent company’s profit is from VND 350 – 370 billion.
New Vision
2020 was a difficult and challenging year for the real estate market and the economy, however, Hai Phat still strived to fulfill the targets set at the Annual General Meeting of Shareholders 2020 thanks to the implementation of a wide range of solutions.
Along with business results that continued to stabilize, Hai Phat began to take steps to “transform” in order to exercise a new strategy in the next period.
Hai Phat launched the new logo to promote brand identity, restructured the business model, step by step perfecting the ecosystem toward the goal of becoming “The real estate developer with the most complete and synchronized ecosystem in Vietnam”. Accordingly, Hai Phat has restructured various member units, established new subsidiaries including Diamond IC One Member Company Limited and Topaz PM Vietnam to professionalize investment preparation and Project management, Sapphire One Member Company Limited in order to focus on the expansion of investment in hospitality and industrial market.
In order to perfect the ecosystem, in 2020, Hai Phat officially entered hospitality real estate with the introduction of The Seahara product line including The Seahara Phu Yen project, The Seahara Mui Ne – the first hospitality real estate projects officially launched of the Company.
Hai Phat management board stated that Hai Phat hospitality real estate projects follow a different trend, which is “real estate with hospitality characteristic” compared to pure hospitality projects in the market.
More specifically, because most of the current hospitality real estate projects are developed on land with commercial, tourist, and service functions and limited ownership period, they cannot be granted long-term ownership certificates and not attractive to investors. Hai Phat’s hospitality real estate products are developed on land with residential functions and long-term ownership, thus overcoming the legal limitations of hospitality real estate.
In addition, Hai Phat is also gradually expanding its branding in the Northeast real estate market with large-scale projects such as Mai Pha New Urban Area project with a scale of 91.73 hectares with a total investment of 3,381 billion dong in Lang Son, HP Galaxy Cao Bang project with a scale of 4.35 ha with a total investment of 886 billion dong, La Emera Ha Long residential & commercial resort combined project (Quang Ninh) with a scale of 12,66 ha with a total investment of 1,200 billion.
In the central region, Hai Phat is implementing Vinh My project in Hue with a scale of more than 39.58 hectares with a total investment of VND 656 billion. In the southern region, Hai Phat is implementing the An Binh 1 New Urban Area project with a scale of 164.3 hectares with a total investment of VND 4,981 billion and the An Binh 2 New Urban Area project with a scale of 58.4 hectares with a total investment of VND 4,981 billion. investment 4,160 billion dong.
Strengthening M&A and proactively structuring financing sources.
In order to achieve growth goals under the uncertainty of legal procedures of real estate projects in Hanoi, the Company’s strategy in the upcoming period í to continue to accumulate land funds in provinces and cities outside of Hanoi, with potential economic development at the moment and in the future.
The Company will focus on completing investment procedures and developing real estate projects in economically developed provinces such as Cao Bang, Quang Ninh, Bac Giang, etc. to be able to open for sale this year. With the strength of housing products in the mid-range and high-end segments, the outstanding features of Hai Phat projects are prime location, beautiful design with maximum functionality. With mid-range pricing but close to high-end quality, the Company’s product always having high potential for increasing in price compared to the surrounding area.
“60 – 70% of housing demand today still belongs to the mid-end and high-end segments, so Hai Phat is still consistent with the strategy to pursue this segment,” said Hai Phat’s management board. With the strength of owning a distribution unit – Hai Phat Land – one of the leading distributors in the country, Hai Phat is confident to create good revenue and profit for 2021 as well as ensure the balance cash flow for other investment activities.
With an optimistic view in 2021, the market will soon stabilize and grow significantly again when the Covid-19 epidemic is under control and vaccination activities promoted on a large scale. In addition, the knot in real estate policy will be removed, which will create a driving force for the real estate market to be vibrant again.
This creates opportunities for Hai Phat to become “the most complete and synchronous real estate developer in Vietnam”. This is an ecosystem with mutual impact, creating value to the real estate business chain with a stable and sustainable management system.