Hoang Huy Group to raise $79 million for Haiphong property projects

Hoang Huy Financial Services Investment JSC (HOSE: TCH) plans to raise VND 2 trillion ($79 million) via a share issue in 2025 to fund two major property projects in the northern port city of Hai Phong, the company announced at its shareholers' meeting on May 9.

Shareholders approved the issuance of more than 200 million new shares, which will increase the company’s charter capital to VND8.68 trillion. Around VND1.2 trillion will be allocated to the Hoang Huy Green River urban development in Thuy Nguyen city, and the remaining VND800 billion to the H2 tower of the Hoang Huy Commerce complex in Le Chan district.

The two projects have a combined investment capital of VND6.25 trillion. The H2 building includes a 36-storey residential tower with three basement levels. Construction is underway on its foundation and first floor. The Hoang Huy Green River project spans 32.5 hectares and will feature 810 terraced houses and 447 social housing units. Land clearance and infrastructure works are in progress.

Chairman Do Huu Ha said the capital raise is necessary to support expansion, noting that the company’s total project value has grown fivefold to VND 24.5 trillion since 2022.

The company last raised capital in 2021, generating VND 2.56 trillion through a rights issue, which was invested in two other Haiphong residential projects. Those developments contributed more than VND6.28 trillion in revenue and VND2.79 trillion in gross profit.

Separately, Hoang Huy’s subsidiary, Hoang Huy Investment Services JSC, will issue 64 million shares at VND 12,500 each in a private placement. Proceeds of over VND 800 billion will be used to acquire a majority stake in CRV Real Estate Group by purchasing shares in HHS Capital JSC.

Following the transaction, Hoang Huy Financial Services will increase its stake in Hoang Huy Investment Services from 51.06% to 58.31%. CRV, founded in 2006, is developing several major residential complexes in Hai Phong, including the Hoang Huy – So Dau, Hoang Huy Commerce and the 49-hectare Hoang Huy New City project.

Hoang Huy expects revenue to exceed VND4 trillion and post-tax profit to reach up to VND2 trillion in fiscal year 2025-2026, targeting annual growth of over 30% for the next five years.

Real estate now accounts for 84% of its revenue, compared to 10% in 2018, when auto trading dominated its business model. In the fourth quarter of fiscal year 2024-2025, net revenue dropped 47% to VND 859 billion, with net profit falling to VND254 billion, due to delayed revenue recognition from ongoing projects.

The Hoang Huy Green River project is expected to record revenue by end-2025, while the H2 tower is scheduled for market launch later this year, with earnings to be recognized in 2026.