AsemconnectVietnam - Just planning to return to the real estate sector, Hoa Sen Group Joint Stock Company (HSG code - HOSE exchange) plans to IPO the plastic business.

Hoa Sen has just released its Annual Report for the 2022-2023 year. Although it did not announce the financial plan for the new year, the Company did share its development strategy.
In particular, regarding the investment plan, in the fiscal year 2023-2024, Hoa Sen said that for the plastic production and business segment, the Company continues to consolidate and improve the operational efficiency of Hoa Sen Plastic Joint Stock Company, gradually implementing the initial public offering (IPO) when it has prepared enough resources and market conditions allow, expected from 2024 to 2026.
Regarding the construction materials and furniture distribution business, the Company continues to consolidate and improve the business efficiency of the Hoa Sen Home system, preparing enough resources to establish Hoa Sen Furniture - Construction Materials Distribution Joint Stock Company, at the same time planning to transfer the construction materials and furniture distribution segment to Hoa Sen Home Joint Stock Company at a suitable time, expected from 2024 to 2026.
It is known that after 2 years since its establishment, Hoa Sen Home chain currently has 114 stores in 3 regions of the country.
Recently, Rong Viet Securities Company (VDSC) made a forecast for Hoa Sen's 2023 - 2024 financial picture.
In particular, this analyst unit forecasts that in the fiscal year 2023-2024, Hoa Sen Group will record revenue of about VND34,800 billion, an increase of 10% over the same period; The parent company's after-tax profit recorded about VND782 billion (same period profit was VND30.01 billion).
Hoa Sen contributes capital to a new company to participate in real estate projects
In the last days of 2023, Hoa Sen attracted the attention of investors when it planned to return to investing in real estate projects. In particular, the Company approved the investment policy in the form of capital contribution at a rate of 40% to establish Hoa Sen Saigon Joint Stock Company, expected to be implemented in January 2024 and Mr. Tran Ngoc Chu, the permanent Vice President and executive Chairman of the Board of Directors will be the representative of the capital contribution.
This company will operate in the field of real estate business, performing the task of searching for real estate worth VND1,000 - VND3,000 billion to develop office - commercial center - housing projects; Arranging office space for Hoa Sen Group; lease; or consider transfer.
"After contributing capital to establish a new company, if the market situation changes or the Group needs to recover investment capital, Hoa Sen will transfer its capital contribution to existing shareholders of the company. Hoa Sen Saigon Joint Stock Company, with the transfer value equal to the original value plus interest calculated according to the average interbank interest rate at the time of transfer," Hoa Sen said in the resolution.
It is known that Hoa Sen Saigon Joint Stock Company will have a charter capital of VND100 billion; Headquartered at 22 -24 Nguyen Co Thach, Sala Urban Area, An Loi Dong Ward, Thu Duc City, Ho Chi Minh City.
In fact, over the past many years, Hoa Sen has also continuously wanted to expand into the real estate field in addition to the galvanized steel industry, but the results were not as expected.
In particular, in 2009, Hoa Sen planned to invest in 5 projects including Hoa Sen - Pho Dong high-rise apartment complex (District 9, Ho Chi Minh City); Hoa Sen Phuoc Long B apartment project (District 9, Ho Chi Minh City); Hoa Sen Riverview apartment project (District 9, Ho Chi Minh City); Hoa Sen Group Headquarter Office project (District 2, Ho Chi Minh City); contributing 45% of capital to the Hoa Sen - Gemadept International Port project.
However, two years later, the Company transferred and withdrew capital from all 4 projects, leaving only the Hoa Sen - Pho Dong project.
By 2016, Hoa Sen established 4 companies in the real estate sector including Hoa Sen Yen Bai Joint Stock Company, Hoa Sen Hoi Van Joint Stock Company, Hoa Sen Van Hoi Joint Stock Company and Hoa Sen Quy Nhon Joint Stock Company.
Currently, Hoa Sen only has 1 unit operating in the real estate sector, Hoa Sen Yen Bai Joint Stock Company (established in 2016). This company received additional capital from Hoa Sen Group in February 2023, increasing its charter capital from VND340 billion to VND421 billion. Hoa Sen Group's ownership ratio at Hoa Sen Yen Bai Company is 95.96%.
N.Nga
Source: VITIC/Tinnhanhchungkhoan