AsemconnectVietnam - Hai Phat Investment Joint Stock Company (HPX) has just released its annual report, in which the consolidated revenue plan in 2020 is expected to be 2,138 billion dong, after-tax profit is 412 billion dong, down by nearly 38 percent and 9 percent compared with implementation in 2019.

HPX is a medium-sized real estate business newly listed in July 2018 and introduced with a large land bank in many prime locations in Hanoi, Nha Trang, Da Nang, Hoi An, Binh Thuan, Nam. Định, Cần Thơ up to tens of thousands of hectares.
In 2019, Hai Phat Investment Joint Stock Company recorded VND 3,432 billion in revenue and VND 453 billion in after-tax profit, respectively increasing by 70 percent and 0.15 percent compared to 2018. However, HPX only completed 79.9 percent of the revenue plan and 62.9 percent of profit plan set at the general meeting of shareholders in March 2019.
As explained by HPX, in 2019, the company completed and handed over the apartment to customers in Hai Phat Plaza project, Phu Luong project, Trau Quy project and Phu Lam social housing project and the revenue increased by nearly 70 percent. However, the profit was flat, the gross profit margin dropped unexpectedly from 24.5 percent to 14.9 percent.
Because of the simultaneous handover of the project, HPX’s inventory has decreased from 3,695 billion VND to 2,160 billion VND, and the amount of money from the buyer of the project dropped from 1,374 billion VND to 294 billion VND.
Despite the strong handover of the project, in 2019, the total assets of the business decreased from VND 7,554 billion to VND 6,829.6 billion, equivalent to a reduction of nearly 10 percent of the assets. A large fluctuation of assets, but HPX did not mention and explain to investors the reason for the sharp decline of this asset such as handing over the project to help businesses increase the amount of money, or at least the additional assets due to a surplus between the cost of the project investment and an increased profit margin from the project.
Currently, the shareholder structure of HPX has only one Vietnam Enterprise Investments Limited, which owns 7.59 percent, the rest are mainly individual shareholders.
N.Nga
Source: Securities Investment Newspaper