Property major Ha Do Group aims for 2024 net profit growth of 25%

Ha Do Group, one of the leading real estate developers in Vietnam, has targeted 2024 consolidated net profit growth of 20-25% year-on-year, said its chairman Nguyen Trong Thong.

This year, the group will focus on the real estate and energy sectors, promoting M&As of new projects, increasing investment in industrial park projects in northern provinces like Hung Yen, Thai Binh, Nam Dinh and Quang Ninh, and expanding business areas, creating growth momentum in the next period, he stated.

"Ha Do has never had such a clear strategy before. Both the board of directors and the executive board have mapped out long-term orientations for the next five years," Thong stressed at a conference on February 5 to review the company’s 2023 performance and launch tasks for 2024.

The group, listed on the Ho Chi Minh Stock Exchange (HoSE) as HDG, will re-establish its organizational structure in a synchronous, streamlined and effective manner, he added.

In order to streamline the system and reduce operating costs while still ensuring medium and long-term development goals, Ha Do has decided to dissolve its southern branch. Instead, four member units acting as real estate companies in Ho Chi Minh City will take the main responsibility for developing new projects in this area, Thong revealed.

The group will continue to promote digital transformation through the official operation of its electronic office system, helping to shorten the time taken to resolve affairs between departments, thus facilitating the systematic and scientific monitoring, approval and search for archived records, he added.

Ha Do operates in three main areas including real estate, construction and energy. Its real estate products include new urban areas, low-rise houses, apartments, offices for lease, and hotels in Hanoi and Ho Chi Minh City.

The construction segment mainly features civil and transportation projects for state agencies, the Ministry of National Defense and large corporations. Meanwhile, in the energy segment, the group owns five hydroelectric plants, two solar power plants and one wind power plant with a total capacity of 462 megawatts.

Previously, real estate was the breadwinner, but since 2022, it has been replaced by the energy segment, which accounted for 67% of the group’s total revenue last year.

In 2023, Ha Do recorded consolidated revenue of VND2,882 billion ($118 million), down 20% compared to 2022. As its real estate revenue plunged from VND1,112 billion to only VND282 billion ($11.55 million) and that from energy decreased by 8% to VND1,939 billion ($79.4 million), the group’s net profit fell 35% year-on-year to VND711 billion ($29.1 million).

In 2022-2023, amid the downward trend of the real estate market, Ha Do almost stopped investing in new real estate projects but only focused on completing the Hado Charm Villas project in Hanoi’s outlying district of Hoai Duc.

Last year, Ha Do reduced its debt by nearly VND700 billion to VND5,426 billion ($222.2 million), with debt to equity ratio at 74%.

On the stock market, HDG closed the Thursday session at VND27,200 ($1.11) per share.