A new chapter for Vietnam’s major real estate developer Hoang Huy

The merger of CRV Real Estate Group JSC (CRV) into Hoang Huy Investment Services JSC (HoSE: HHS) marks the completion of Hoang Huy Group’s ecosystem restructuring process, paving the way for a new phase of the group's development.

Restructuring completed

HHS has successfully acquired nearly 50.1 million shares, equivalent to a 99.9% stake in HHS Capital JSC – the legal entity that holds 7.45% of CRV.

As a result, the firm increased its total ownership (both direct and indirect) in CRV from 43.58% to 51.03%, officially becoming CRV’s parent company as of June 18, 2025.

This M&A deal marks the final step in the restructuring of Hoang Huy Group, with the parent company Hoang Huy Financial Services Investment JSC (HoSE: TCH) holding 51% of HHS.

CRV entered the market in 2019 with its flagship project, Hoang Huy Grand Tower (VND1.5 trillion or $57.3 million), located at 2A So Dau, Hong Bang district, the northern city of Hai Phong. Shortly after, Hoang Huy's leadership designated CRV as the group's core vehicle for real estate development.

Currently, CRV is investing in several large-scale real estate projects in Hai Phong, such as Hoang Huy Grand Tower, Hoang Huy Commerce (VND3.7 trillion or $133.67 million), and Hoang Huy New City II (VND15.1 trillion).

In fiscal years 2023 and 2024, CRV reported a total post-tax profit of VND1.45 trillion ($55.34 million). Projections for 2025 and 2026 are VND1.6 trillion and VND2 trillion, respectively - highly impressive figures.

Why now?

Increasing its stake and becoming CRV’s parent company allows HHS and TCH to benefit directly from CRV’s expected strong and stable business performance.

Completing the parent-subsidiary holding structure also allows Hoang Huy Group to optimize its operational system, reduce costs, and create balanced value for all shareholders across the group.

For HHS in particular, raising its ownership in CRV significantly changes its business structure - from primarily distributing trucks to incorporating real estate development.

This move addresses long-standing expectations from shareholders, as HHS had previously received limited income from CRV via profit-sharing as an associate company. Now, as CRV’s parent, HHS will fully recognize the strategic value of its investment made during 2020–2022.

The ownership model of Hoang Huy Group is now clearly vertically structured: TCH - HHS - CRV, with each company operating independently yet in a closely linked manner, helping investors better understand and assess each entity's performance.

Another significant development is CRV’s preparation for listing on the Ho Chi Minh Stock Exchange (HoSE) in the second half of 2025.

With a clean and high-potential project portfolio, and amid Hai Phong’s rapidly growing real estate market, CRV is expected to attract considerable attention from both domestic and international investors. Consequently, HHS and TCH may also experience a revaluation by the market.

Listing on the HoSE, the country’s most prestigious exchange, further affirms Hoang Huy Group leadership’s commitment to transparency and sustainable development.

A promising future

Recently, the government and local authorities have been actively removing obstacles and barriers in real estate development to promote a healthy, sustainable market that meets legitimate housing and investment demands.

Hai Phong is currently one of the fastest-growing economies in Vietnam, driven by superior infrastructure - highways, deep-water ports, airports, and railways, which have either been completed or are under development.

Its growth potential has increased even more after the National Assembly approved the administrative boundary reorganization, merging Hai Duong into Hai Phong, making it Vietnam’s third-largest economic hub, following Hanoi and Ho Chi Minh City.

This boundary expansion is expected to accelerate urbanization, both in the central core and peripheral zones, especially in Thuy Nguyen, the future administrative center.

These positive developments in Hai Phong's real estate market offer new opportunities for reputable and financially strong developers like Hoang Huy Group.

Hoang Huy was an early leader in Hai Phong’s real estate scene with Pruksa Town (VND1.2 trillion or $45.8 million) in 2015 - the city's first large-scale social housing project.

Ten years on, Hoang Huy Group has become one of Hai Phong’s largest real estate developers, with a portfolio of 15 projects totaling VND37 trillion ($1.41 billion) in investment.

Building on its proven reputation and resources, the group was recently assigned by Hai Phong city to study two new projects covering nearly 150 hectares in Thuy Duong, Lam Dong and Hoa Dong wards, all in Thuy Nguyen.

According to investors, Hoang Huy’s strength lies in its clear and complete legal procedures, rapid project implementation, sequential development strategy, and well-targeted and reasonably priced products.

Notably, the group has barely used financial leverage. As of March 2025, TCH’s total assets reached over VND15.3 trillion ($583,86 million), mainly comprising VND13.45 trillion in equity.

Financial liabilities were modest, with short- and long-term loans totaling only VND303 billion, mostly long-term. On the asset side, cash and term deposits amounted to over VND3.6 trillion.

Similarly, HHS had virtually no financial leverage by the end of Q1/2025, with equity making up nearly 90% of its VND5.37 trillion ($204.9 million) in total capital. CRV also maintained low debt levels, with a debt-to-equity ratio of only 0.18x as of March 31, 2025.

With the successful, transparent restructuring as a strong starting point, Hoang Huy Group is now well-positioned to enter a new chapter - one focused on executing its strategic development plans for the years ahead.

In the stock market, HHS closed Monday at VND14,700 ($0.56) per share, while TCH at VND19,050 per share.