On July 30, 2021, Hung Thinh Incons Joint Stock Company (Stock Code: HTN) announced its financial statements for the second quarter of 2021 with outstanding business results.
Consolidated net revenue in Q2 of HTN reached VND 1,696 billion, profit after tax reached VND 82.6 billion, up 159% and 4.511% respectively compared to Q2/2020. Generally, for the first 6 months, HTN achieved consolidated net revenue of VND2,855 billion, profit after tax of VND120 billion, up 66.5% and 3.4% respectively compared to the results achieved in 2020. This result was achieved by recognizing revenue and profit from completed projects as Lavita Charm and Q7 Boulevard by HTN as the general contractor, these two projects have now been handed over to customers.
Lavita Charm apartment complex by HTN as general contractor has been handed over to customers
At the end of Q2, the construction and installation segment still played a key role in HTN's revenue structure when it recorded VND 1,690 billion, an increase of more than 166% over the same period. Gross profit margin in Q2 also improved significantly with 8.5% compared to 5.1% in Q2 last year. With the outstanding competitive advantage of Hung Thinh Incons when located in the ecosystem of Hung Thinh Corporation, the understanding of product design and construction planning from the very beginning of Hung Thinh Land - a key member of real estate development of Hung Thinh Corporation helps HTN record revenue growth and gross profit margin that is always higher than the industry average.
Previously, on July 12, 2021, Viet Dragon Securities Corporation (VDSC) issued a report evaluating HTN shares. VDSC is based on detailed information on the progress, value and performance of HTN of signed projects, thereby it uses P/E and P/B valuation methods to determine the fair value of shares. HTN bond is VND 41,600/share with a target P/E of 11.6x and a target P/B of 1.14x (based on comparison with peers), representing a return of 19 % compared to the closing price on 9/7/2021 session. The above forecast and valuation do not include HTN's newly signed contracts, these projects may increase HTN's profits in 2021 and 2022 depending on the specific implementation time.
In terms of long-term outlook, HTN's source of revenue in the next two years is a large backlog at the end of 2020 of about VND 37,000 billion (~ USD 1.6 billion), equivalent to a growth rate of 22% for the period 2017-2020. The recognition of revenue from the remaining contract value is quite certain because the construction of large projects such as Q7 Saigon Riverside Complex, Ho Tram Complex, Vung Tau Pearl, Quy Nhon Melody is still progressing on schedule.
Last June, HTN officially handed over the Q7 Boulevard apartment project (District 7, Ho Chi Minh City), before that in April 2021, it also handed over the Lavita Charm apartment project (Thu Duc City, HCMC), and is about to hand over Cam Ranh Mystery Villas coastal resort (Khanh Hoa Province).
Q7 Boulevard apartment area has just been completed
In the first 6 months of 2021, the Vietnamese economy in general and the construction industry in particular are heavily affected by the Covid-19 pandemic. In such situation, the staff and construction workers of Hung Thinh Incons always strictly apply measures to prevent the Covid-19 pandemic, while maintaining the progress of completing and handing over many projects continuously. With the potential of finance, human resources, the ability to apply high technology in management and construction, etc. HTN continues to affirm its position as the leading brand in Vietnam's construction industry.