OCH and its discreet M&A strategy: A defining shift

After a strong restructuring phase and a series of strategic M&A transactions, One Capital Hospitality, the proprietor of renowned ice cream brand Trang Tien, is expanding into the premium hotel and office real estate sector, driving significant changes in its asset structure and business operations.

Successful restructuring, solid financial foundation

In its 2024 audited financial report released recently, the company, listed on the Hanoi Stock Exchange as OCH, said it recorded revenue of VND1.01 trillion ($39.39 million) and a post-tax profit of VND176.72 billion ($6.89 million), up 0.28% from the pre-audit figure, and surpassing its projection and over four times higher than the initially set profit target.

Thanks to its strategy of cutting debt, optimizing assets, and improving operational efficiency, OCH has maintained stable growth. By the end of 2024, its liabilities decreased by 18% to VND1.93 trillion ($75.28 million), with debt reducing by nearly VND250 billion, without any new long-term loans. Shareholder equity grew by 8%, reaching VND1.91 billion, further strengthening the company's financial health.

M&A - A strategic growth driver

At the 2024 AGM of Ocean Group, the parent company of OCH, listed on the Ho Chi Minh Stock Exchange as OGC, and OCH, both OGC chairwoman Le Thi Viet Nga and OCH CEO Le Dinh Quang affirmed that in order to achieve breakthrough growth, OCH will not only focus on its core business but also expand through an M&A strategy.

Over the next five years, OCH aims to raise its annual revenue to VND4 trillion ($155.97 million) and profit to VND1 trillion ($38.99 million). To that end, the company will pursue a sustainable growth strategy, focusing on selective M&A transactions.

In late 2023, OCH successfully acquired Tin Phat Ice Cream JSC and JP Food, marking a decisive step in expanding its fast-moving consumer goods ecosystem.

The mergers and acquisitions of companies with suitable products and markets will help OCH optimize its value chain, improve capital efficiency, and enhance its competitive edge.

Repositioning with a multi-billion-dollar hotel and real estate portfolio

Trang Tien ice cream made its debut in 1958 and takes its name from an iconic street in the center of Hanoi. Trang Tien street was also the first place where the ice cream was produced and sold.

Despite the tests of time, Trang Tien ice cream still exists and continues to develop at 35 Trang Tien street, Hoan Kiem district. The brand currently has outlets in most provinces and cities across the country.

OCH is also well known as owner of famous cake brand Givral that was launched more than 70 years ago in Ho Chi Minh City.

Apart from such long-established brands, OCH also holds a valuable portfolio of assets in the hotel and real estate sector.

The hotel segment has emerged as a key growth engine for OCH as the tourism industry experiences a strong recovery. In 2024, Star City Nha Trang reported an 86% increase in gross profit, while Sunrise Nha Trang achieved a room occupancy rate of 71.73%, exceeding its target.

OCH is currently a major shareholder in large-scale real estate projects such as the five-star Dusit Hanoi Tu Hoa Palace, Leadvisors Tower, and Leadvisors Place, all in the capital city of Hanoi, and MGallery Ninh Van Bay in the northern coastal province of Quang Ninh. The company’s ambition goes beyond ownership, it aims to become a controlling shareholder in the near future

Investing in high-end real estate and luxury hotels allows OCH to maximize cash flow from leasing activities, ensuring stable long-term income. Amid a supply crunch in premium real estate, OCH has significant opportunities to enhance asset value and fuel enduring profit expansion.

Position consolidation journey

Following a string of M&A deals and a comprehensive restructuring strategy, OCH is not only focusing on the fast-moving consumer goods sector but is also emerging as a leading player in the premium hotel and office real estate market.

Despite the challenges ahead, OCH is steadily solidifying its market standing with a strong asset foundation and a clear growth strategy. Investor interest in OCH shares is not just a short-term trend but reflects expectations for sustainable growth in the future.

OCH shares were relieved of trading restrictions by the Hanoi Stock Exchange (HNX) on December 15, 2022, after it submitted separate financial statements and audited consolidated financial statements for 2021, and did not violate regulations on information disclosure for six consecutive months.

On the HNX, OCH closed Tuesday at VND6,300 ($0.25) apiece.