Hung Thinh Incons setting a minimum growth target 20% / year

Posted: 29-03-2019

Mr. Le Chi Trung, General Director of Hung Thinh Incons (HTN) said that the real housing demand still remains high, especially in Ho Chi Minh City – the main operating area of HTN. In addition, the company has been expanding into the tourism and resort estate segment in the direction of developing tourism into a key economic sector of the Government. Accordingly, HTN expects to maintain a good growth rate (about 20%).



In 2018, how can HTN record a 61% surge in profit, sir?

Both revenue and profit of HTN in 2018 increased, of which its revenue reached VND 4,061 billion, up 50%, thanks to good control of costs, profit after tax increased better, reaching VND 185 billion, up 61%. Compared to figures in 2017, it could be seen that this was a sudden growth. But in the general context of the real estate industry in 2018 that was a relatively good development year, developers deployed many large projects – a favorable condition for many construction enterprises to win more projects, the growth of HTN was also easy to achieve.

Generally for the last 3 years (2016-2018), HTN's business result continued to grow. Profit per share (EPS) was from VND 4,205 to VND 6,456.

HTN also gained benefits and took advantage of opportunities from the market. The receipt of big and long-term contracts that demanding high quality was the premise for the sustainable growth of HTN, not only in 2018 but also for the following years.

What is your assessment on the real estate market in 2019, which will directly affect the workload of HTN?

Until now, the real demand for real estate has been still very large, thereby creating a lot of momentums for enterprises in the industry to grow. In my opinion, in 2019, the real estate market will continue to grow with positive movements.

At present, the real house demand, especially in Ho Chi Minh City, remains high, ensuring our sustainable development. Moreover, HTN has been continuously expanding more types of tourism and resort real estate. With outstanding competitive advantages, the number of input projects that is stable and continuously develops more various types, construction works and construction sites, HTN expects to keep a good growth rate this year.

What is HTN's revenue and profit plan for 2019?

In 2019, the Company sets a revenue target of VND 4,865 billion, after tax profit of VND 216 billion. This target continues to maintain the overall growth rate of 20% compared to the previous year.

The plan is based on the actual construction progress of ongoing projects plus new contracts expected to be signed this year. Specifically, the projects that HTN has been implementing are SaigonMia, Q7 Saigon Riverside Complex, Richmond City, Lavita Charm... In addition, the company plans to receive more new projects from Hung Thinh Corp. and other developers. The prices of input materials are also forecasted to be stable in 2019, which will significantly support business activities, ensuring profit targets set by HTN.

HTN is a newbie in the stock market, do you feel stressful because of the regulations on disclosing information in a transparent and timely manner to shareholders?

The target of listing HTN shares is mainly to increase transparency and improve the strictness in each stage of management of the Company. This orientation has been gaining certain achievements. The company is applying the management system according to international standard ISO 9001: 2015; ISO 45001: 2018.

At the same time, the company applies BIM technology to management of construction works to increase productivity, efficiency, stabilize the quality of construction works, thereby contributing in improving the image and reputation of the company, bringing added benefits to shareholders.

Since the time of official listing on HOSE on 12/11/2018, HTN has always fulfilled the responsibility of a public listed company. Information disclosure is focused and implemented fully and timely. Through the website and other media, the company promptly responds as well as interacts with shareholders and developers interested in shares of HTN.

In the near future, the Board of Directors of HTN will submit to shareholders about the election of additional members of the independent Board of Directors in order to improve the governance, towards corporate governance standards in accordance with international practices.


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