The number of projects has been simultaneously deployed on the basis of existing land bank, besides BOD of Hai Phat Invest (Ticker Symbol: HPX) considers reorganizing and stabilizing the operating model as the top priority during the market now contains many uncertainties like the recent outbreak of COVID-19.
Accordingly, in the document of the annual shareholders’ meeting 2021, Hai Phat Invest announced the consolidated turnover plan to reach from VND 1,500 – 1,600 billion, in which the parent company accounts for VND 1,000 – 1,500 billion. In addition, Hai Phat Invest’s after-tax profit was expected to reach VND 370 – 390 billion, in which the parent company accounts for VND 350 – 370 billion.
The year of 2020 marked a year of difficulties and challenges for the whole economy, generally speaking and for the real estate market in particular. However, Hai Phat Invest still endeavors to achieve the objectives which were set in annual general meeting 2020, thanks to synchronical solutions.
Along with solid business performance, Hai Phat Invest began to implement the steps of “transition” in order to meet the new targets in the next stages.
Starting from changing the new logo pushing the brand recognition, to reorganizing the operation model, which step by step complete the ecosystem to make Hai Phat to be known as “The real estate developer which has the most synchronized and superb ecosystem in Vietnam”.
Hai Phat, thereby, restructured a number of member companies, supplement and establish the new business units such as Diamond IC Ltd. and Topaz PM Vietnam to professionalize the phase of project pre-investment study, management or Sapphire Ltd. which has the mission to develop the new segments, leisure travel and industry.
For the purpose of the economy completion, in 2020 Hai Phat officially stepped in the tourism real estate segment with the outset of product line named The Seahara, which includes The Seahara Phu Yen, The Seahara Mui Ne, the first commenced tourism real estate projects.
The Board Of Director of Hai Phat Invest declare, the Hai Phat Invest’s tourism real estate projects will follow a different trend, which is “resort type real estate” not merely the tourism like other projects available on the market.
More specifically, since all the present-day tourism real estate projects are built on the commercial, tourism and service land bank which are leasehold term and would not be issued freehold Certificate of Land Use Right, therefore being unattractive to the investors.
Hai Phat Invest’s tourism real estate projects are built on residential, freehold term land bank, which excludes the legal restrictions of tourism type while the regulations and laws have not been accomplished. On top of that, HPX are expanding the presence on North East Region’s real estate market with the large-scale projects, namely Mai Pha Commercial Urban Area, 91.73 hectares, total investment of VND 3,381 billion at Lang Son; HP Galaxy Cao Bang, 4.35 hectares, total investment of VND 886 billion; La Emera Ha Long integrated mix-use of resort, commercial, service and residential project (Quang Ninh), 12.66 hectares, total investment of VND 1,200 billion.
In the central Vietnam, HPX are implementing the Vinh My project at Hue province, 39.5 hectares, with total investment of VND 656 billion. In the south Vietnam, HPX are deploying An Binh 1 New Urban Area project, 164.3 hectares, with total investment of VND 4,981 billion and An Binh 2 New Urban Area project, 58.4 hectares, with total investment of VND 4,160 billion.
Escalating M&A activities and proactively restructure the fund
In order to meet the growth target while the real estate legal regulations still maintains impediments, BOD of Hai Phat Invest stated, the upcoming development strategic which this enterprise are following, is collecting the land bank in province adjacent to Hanoi, where there have been conditions to develop economy at present and future.
In the short run, Hai Phat will concentrate on the investment procedures, develop the real estate projects at economically developed provinces like Cao Bang, Quang Ninh, Bac Giang, … and being put on the market this year. With the outstanding strength which are mid-end and approaching high-end segments residential projects, the main features of Hai Phat Invest branded are good location, nice, space optimized design. Thus, the products always have a better appreciation than others.
“Because 60% – 70% of current housing demand still belong to the mid-end and approaching high-end segments, Hai Phat Invest keeps pursuing these segments”, said and emphasized by BOD of Hai Phat Invest.
With the strength of possessing the Hai Phat Land agency – one of country’s top agencies, Hai Phat Invest are confident to gain good revenues and profits in 2021, as well as, guarantee cash flows for other activities.
Optimistically evaluating the development prospect in 2021, BOD of Hai Phat Invest assumes that the market is soon to stabilize and grow strongly again, when the COVID-19 pandemic is contained and the vaccination is expanded in the large scale by the Government. Also, the knot in the real estate regulations and laws will be removed to push the real estate market being vibrant. This picture is going to make way for Hai Phat Invest to grow and step further in the road to become “most synchronized and superb ecosystem in Vietnam”. This is indeed the reciprocal ecosystem, creating added value in the real estate development chain with stable and steady management system.