The Hyundai Elevator Company (HEC) has become a strategic shareholder in Hoa Binh Construction (HBC), according to a representative from HEC.
The decision was made as HBC was considered a bluechip construction company with high growth potential, the representative said.
He added that the strategic cooperation with a large construction company like Hoa Binh will create momentum to expand HEC’s business in Vietnam, thus gaining more customers and enhancing its brand image.
According to a report released by HBC at a recent meeting with its investors and brokers, consolidated revenue in the first quarter of 2019 was VND3.708 trillion ($158.4 million), an increase of 11 per cent compared to the same period in 2018 and achieving 20 per cent of the revenue plan for 2019.
However, the company’s consolidated after-tax profit was VND121 billion ($5.18 million), a decline compared to the same period in 2018 and accounting for 17 per cent of the 2019 profit plan. Gross profit margin reached 9.2 per cent, equivalent to the gross margin in the same period of 2018.
In addition, HBC’s value of reserved contracts in 2018 reached VND24.237 trillion ($1.04 billion) and the value of new contracts since the beginning of 2019 total VND6.516 trillion ($278.6 million).
At the meeting, an HBC representative also spoke of the real estate business plan of the Tien Phat Company in the 2020-2021 period.
Tien Phat expects to record profit of VND250 billion ($10.7 million) in the period, mainly from handing over such projects in Ho Chi Minh City as Ascent Plaza in Binh Thanh district, Ascent Garden Homes in District 7, and Ascent City View in District 4.
In the field of infrastructure, HBC will focus on building transport infrastructure (including seaports, airports, and highways, etc.), irrigation projects, and industrial projects during the 2020-2025 period.
HBC is currently participating in bidding packages for the North - South expressway section at Cam Lo - La Son, the East highway, the Metro No. 2 urban railway line in Ho Chi Minh City, and other construction packages of the Ministry of Transport, the Ministry of Agriculture and Rural Development, and the cities and provinces of Ho Chi Minh City, Hanoi, Vung Tau, Da Nang, and Can Tho, etc.
Its revenue target is VND810 billion ($34.6 million) in 2020 and VND7 trillion ($299.2 million) by 2025.
Within its strategy for developing foreign markets, HBC is still researching and promoting exchanges with partners in feasible projects in Australia and Canada.
Regarding a private share issuance on May 28, the State Securities Commission of Vietnam has given written approval to the company to sell private shares according to the plan approved under the Annual General Meeting Resolution 2019 and announced resolutions in accordance with the law.
At the same time, the State Securities Commission approved the company adjusting its foreign ownership ratio in HBC shares from 49 per cent to 37.5 per cent to ensure the same ratio after the private share issuance to foreign investors.