TNH Hospital Group eyes major foreign investment to fuel ambitious expansion

TNH has recently received approval from the State Securities Commission to increase its foreign ownership limit from 49 per cent to 70 per cent.

This development follows significant purchases of TNH shares by foreign shareholders this year, who now collectively hold 32 per cent of the company's equity.

Current data shows TNH's major foreign investors include KWE Beteiligungen AG with a 10.51 per cent stake; Access S.A., SICAV-SIF - Asia Top Picks with 6.92 per cent; and Blooming Earth Pte. Ltd. (Singapore) with 5.2 per cent.

At the 2024 general meeting of shareholders, TNH's management highlighted that expanding the foreign ownership limit would enhance the liquidity of TNH's shares and facilitate the company's capital-raising efforts, particularly from foreign sources.

The increase in foreign ownership is expected to support TNH's ambitious expansion plans, which include developing a network of 10 general and specialized hospitals, along with long-term preventive healthcare projects.

This year, TNH plans to introduce preventive healthcare services, such as vaccinations, to its portfolio.

According to Le Xuan Tan, TNH's General Director, the demand for vaccines outside the current expanded immunization program has surged since the Covid-19 pandemic.

The demand for vaccinations at hospitals is substantial, particularly in Viet Yen facility in Bac Giang province, where there is a large workforce in industrial zones.

He said setting up a vaccination department within the hospital is less challenging than establishing a separate vaccination center.

TNH Chairman Mr. Hoang Tuyen envisions a network of 10 hospitals by 2030, including both general and specialized facilities, covering areas such as oncology, obstetrics, ophthalmology, and stroke.

Currently, TNH operates two medical facilities: including Thai Nguyen International Hospital and Yen Binh General Hospital in Thai Nguyen province.

TNH Viet Yen in Bac Giang province is awaiting approval from the Ministry of Health.

Additionally, TNH is investing in a 10-story hospital project in Lang Son province, featuring 300 beds, designed as a general hospital. Last year, the hospital also contributed capital to establish TNH Hanoi Hospital Joint Stock Company for an investment project in Ciputra Hanoi urban area, with around 500 beds.

Furthermore, the company is moving forward with a specialized oncology general hospital project in Danang City under thepublic-private partnership model.

In the first half of the year, TNH reported revenue of VND222 billion and net profit of VND54 billion, achieving 41 per cent and 35 per cent of its annual targets, respectively.