Welcome Hai Phat on 15 years old birthday: HPX shares are stable even in the downturn period of Vietnam stock market

On December 4, 2018, the State Securities Commission (SSC) has just approved the plan to increase charter capital of Hai Phat Investment Joint Stock Company (Stock code: HPX) to 2000 billion vnd in 2018 through issuing bonus shares at the rate of 15.94% from share capital surplus.

Accordingly, Hai Phat Investment Joint Stock Company (Hai Phat Invest – MCK: HPX) will issue shares to increase its share capital from equity in 2017 at the rate of 15.94% (shareholders owning 1,000 shares received 159 new shares). Thus, the company will issue nearly 27.5 million new shares in quarter 4/2018. The charter capital after issuance is approximately VND 2,000 billion.

Previously, on November 2, 2018, Hai Phat Invest closed the list of shareholders to pay dividends in 2017 by shares at the rate of 15%. Accordingly, Hai Phat Invest has issued 22.5 million HPX shares to pay dividends to existing shareholders. The capital is taken from the profit of after-tax audited in 2017. Thus, in 2017, Hai Phat Invest’s dividend and bonus share ratio reached more than 33% in just over 4 months after the offering date.

Also in this period, Vietnam’s stock market welcomed business results in quarter 3/2018 with a decline and a relatively strong differentiation. VnIndex decreased from 1,017 points at the closing session on September 28, 2018, to 897 points at the closing session on November 15, 2018. The market kept going down and the liquidity was low, however, with the achieved business results, HPX still maintained positively, the stock price fluctuated slightly around VND 27,000/share before and after the division. The last 30 sessions reached 300,000 shares/session. In the volatility correlation of real estate stocks such as FLC, DIG or NLG, HPX shares achieved impressive growth.

Currently, Hai Phat Invest is implementing 4 projects including The Vesta, Roman Plaza, Phu Luong new urban area and Trau Quy auction area with a total investment of over VND 9,600 billion.

In addition, associates and subsidiaries are also implementing three other projects in Hanoi including HPC Landmark 105, Hanoi Homeland, Bea Sky with a total investment of VND 3,722 billion.

In particular, according to the progress of The Vesta project, two buildings are expected to be transferred in late 2018, early 2019.

For the Roman Plaza project, the lowest part of the low-rise building has been finished, the interior is ready to finish and expected to be transferred to customers before December 31, 2018.

According to the financial statements of the third quarter, at the end of September 2018, total assets of HPX is 6,609 billion dongs, 9 months’ revenue is 563 billion dongs, accumulated after-tax profit is 191 billion dongs. With the proposed plans, a wide portfolio, HPX’s target of VND 3,200 billion in revenue and VND 450 billion in after-tax profit is not too far to achieve.

With a long-term vision and the great ability to create a land fund, HPX has represented a “Real Estate developer” with the ability to implement projects on schedule, high quality, and ensuring good services after purchase as well as risk management.