On March 29, 2019 in Hanoi, Hai Phat Invest Joint Stock Company (Hai Phat Invest) will hold the first annual meeting of the General Meeting of Shareholders since its listing. Many key contents are expected to be adopted at the Congress.
2019 Business Plan: Continue to set ambitious goals
In 2018, Hai Phat Invest finished with more than 2,019 billion revenue (up 87%), post- tax profit reached 452 billion (up nearly 40% over the same period), exceeding the business plan target.
In 2019, although the real estate industry is assessed by many experts to have a slower growth compared to previous years, the company’s management still sets an ambitious business plan with consolidated revenue. nearly VND 4,300 billion, post- tax profit of VND 720 billion (up 59% compared to 2018).
Performance of Hai Phat over the years (Source: Audited consolidated financial statements)
Focus on highly liquid projects
Following the success of 2018 with a series of key projects launched and handed over such as: The Vesta Project, Phu Luong New Urban Area Project, Roman Plaza Project; Hai Phat Invest continues to invest in new projects such as: The South West An Khanh – Hanoi urban area project, An Binh 1 & 2- urban area project in Can Tho City, etc.
Most of Hai Phat’s projects that have been implemented are focusing on the mid-end segment, owning beautiful locations in economic areas with the potential to thrive in big cities with good infrastructure quality, match the real needs of the majority of the middle class and the young population in Vietnam. Thanks to that, the projects that Hai Phat Invest invests in have high liquidity, helping businesses be proactive in capital and maintain their operational efficiency.
Improve equity capacity
Similar to some businesses in the same industry, HPX has a relatively high level of financial leverage. However, ROE and ROE are above the industry average, showing that Hai Phat uses financial leverage quite effectively. At the same time, in the credit relationship with financial institutions, HPX always complies with commitments on repayment schedule and no overdue debts. Hai Phat’s loans all use secured, good quality assets such as real estate, HPX shares. While many businesses in the same industry have unsecured loans, it is quite risky for credit institutions to lend or bond investors to invest.
However, in order to be more proactive about medium and long-term capital sources, gradually reduce the dependence on bank loans, Hai Phat is also preparing for plans to increase charter capital in 2019 and subsequent years.
After NLG, DXG, VPI and a series of other real estate businesses, the Board of Directors of Hai Phat Invest Company will present to the General Meeting of Shareholders for approval of the plan to increase its charter capital to VND 2,875 billion via a private placement and stock dividend.
This is entirely reasonable by the strategic perspective of many experts, before the credit supply pressure for real estate is tightened, only businesses with good financial capacity can take advantage of opportunities. In the context of strong growth in the number of tourists coming to Vietnam, the inflow of foreign investment into the market is accompanied by an increasing number of middle classes. Improving owner’s equity is the right direction to help Hai Phat autonomy capital to achieve the next growth targets of the Enterprise in the coming period.
Catching the investment trend, expanding fields and operating areas
In the recent sharing of senior leaders of Hai Phat Invest, the investment strategy takes the lead in the trend of industrial real estate, resort real estate or real estate and auxiliary infrastructure for the industry.
High-tech agriculture is frequently mentioned. In addition to promoting the inherent strengths in the field of high and low-rise housing development in urban areas, these new fields are expected to bring new steps and high investment efficiency for Hai Phat in the period. next time. The markets that Hai Phat has promoted recently spread from the North and the South, in most provinces and cities with potentials for tourism, developing high-tech industrial parks and agriculture such as Binh Thuan, Da Nang, Can Tho, Nam Dinh, Thai Binh, Thanh Hoa, Da Lat, Dak Lak etc.