HUNG THINH INCONS: AN IMPORTANT CHAIN IN HUNG THINH CORPORATION ECOSYSTEM AND DEVELOPMENT ACCOMPANYING STRATEGY

During the last general meeting of shareholders, Hung Thinh Incons Joint Stock Company established a high growth target in the following 5 years, with a compound annual growth rate (CAGR) of up to 34%, much higher than that of with the last 5 years. This plan is set up based on the growth strategy of "development accompanying", allowing the most important chain of Hung Thinh Corporation's ecosystem to expand connectivity in the new business context.

The strength of general construction contractors: an important link of the Corporation

As a member of the ecosystem of Hung Thinh Corporation, the investor of many large and prestigious real estate projects with abundant financial potential, Hung Thinh Incons (ticker symbol HTN) benefits from the implementation of many large projects, helping bring stable revenue and profit for a long time. In 2017-2021 period, CAGR of net revenue was 23%, profit after tax was at 22%.

In the fiercely competitive civil construction market, Hung Thinh Corporation regularly launches 5-7 projects each year with a quantity of 7,000 - 10,000 real estate products (according to the 2020 prospectus), thereby helping HTN "grow" over time in terms of scale, construction capacity and management.

Grand Center Quy Nhon project is one of 19 projects under construction by HTN in 2022

The number of products offerred to the market is not small, but Hung Thinh's products are always welcomed and absorbed by customers in a short time, thereby helping create faster cash flow. Stable cash flow also helps ensure liquidity for HTN, maintain financial strength when having to execute many projects at the same time.

On the other hand, HTN is also an important chain in the Corporation's ecosystem, when the quality of the works is always secured, the projects are handed over on schedule, thereby increasing the prestige of the Corporation.

Construction and financial capacities are reflected in the list of projects implemented by HTN, covering all segments from apartments, offices to resort projects and spreading in major cities and provinces. With the advantage of being a member of the link chain as well as the resonance from the ecosystem of Hung Thinh Corporation, therefore HTN understands the market better and easily grasps the investor's orientation on project requirements, thereby meeting the needs of the market and bringing the best products to customers.

In fact, in Ho Chi Minh City, apartment projects built by HTN have resonated such as: the brand of affordable apartment chain 8x, Florita, Richmond or Q7 Boulevard recently handed over... Because of its reputation and quality for many years of development, Hung Thinh's following projects have been solicitingly welcomed by investors and people with real needs.

The project of Q7 Boulevard (HCMC) was just handed over by HTN in 2021

“It is not easy to find a good affordable place to settle down in HCMC. I chose Hung Thinh's project because of the prestige of the investor, good construction quality and especially on-schedule handover, with full utilities as promised," shared by Mr. Ha, a resident of Melody Residence (Tan Phu district).

In addition to the housing segment, HTN also demonstrates the power of a general contractor in large-scale resort projects such as Cam Ranh Mystery Villa or Ho Tram Complex. Currently, HTN is implementing a number of high-end projects that require high technical skills and project management capacity, most recently the MerryLand Quy Nhon project with total of 25 subdivisions and a scale of up to 695ha.

The apartments built and handed over by HTN are fully furnished with high quality furniture

For the past 15 years of development, the quality and progress of handing over projects have contributed to bringing the name of HTN to a new height, thanks to promoting the strength of each part of Hung Thinh's value chain. In the new phase, when Hung Thinh begins to develop larger-scale projects, HTN also establishes a more ambitious growth target.

Accompanying the development: Growth highlights for 2022-2026 period

After a period of high growth and success with a value synergy strategy, HTN has recently announced a new strategic vision for the following 5 years with the common objective of raising the quality to the increasing standards of the market.

In addition to focusing on restructuring activities to improve the ecosystem, a special highlight of HTN is the strategy of "Development Accompanying", one of the 5 priority development strategies for 2022 – 2026 period.

Accordingly, Hung Thinh Land will strengthen connection expansion, comprehensive cooperation with other real estate project investors, provision of package solutions from development - construction consulting, product swap, business management, assistance of investor partners to develop successful real estate projects with optimized resources from the ecosystem. In this value chain, HTN plays an important role, in charge of planning, design and construction. In particular, HTN will also offer a flexible payment method with applied product swap, helping investors quickly recover capital and flexible project cash flow.

HTN plays an important role in Hung Thinh Corporation's "Development Accompanying" strategy

HTN also has the objective of expanding the project portfolio, currently contributing mainly from Hung Thinh investor. According to an analysis report published in early April of SSI Securities, in the following 5 years, HTN aims to increase the proportion of non-Corporation revenue to 25% of total revenue with an expanded group of potential customers, in the immediate future small and medium-sized real estate companies. 

Cooperation with HTN means that the investors will "shake hands" with the whole ecosystem of Hung Thinh Corporation, which owns many reputable units, capacity and experience in the entire project development process, from market research, legality to construction and sales.

The "Development Accompanying" strategy helps exploit HTN's own value in the construction segment, and at the same time effectively exploit the common value. Resources are therefore optimized, creating synergistic value to help partners as investors save costs, quickly bring products to the market with proven quality.

According to SSI, HTN was currently in the top of enterprises with the highest total accumulated contract value (backlog) with nearly VND 30,000 billion as of 2021, continuing to contribute more to the Corporation's ecosystem. With the 2.0 growth strategy as oriented, HTN will continue to expand strongly in the near future, and at the same time provide high-quality products to the market, meeting the needs of the people.