Hoa Binh Real Estate Co expects to fulfil 46.8pct of revenue plan in H1
Written by Administrator   
Tuesday, 14 June 2011
In the first six months of this year, Hoa Binh Construction and Real Estate Trading Joint Stock Co expected to fulfil 46.8 percent of the whole year revenue plan. Vo Dac Khoi, HBC's planning manager has recently stated that the company would be able to fulfil the targeted year plan of 2.5 trillion dong in revenue and 150 billion dong in after tax profit in 2011, in which revenue from construction would count for 97 percent of the total revenue.

The member companies under HBC announced not to adjust the H1 plan and the company's management board also held a meeting on June 1, 2011 and decided to retain the proposed plan.

In terms of real estate sector, HBC has concentrated on developing high-rise apartment buildings this year. Therefore, as for those projects in industrial zones, resort complex or tourism areas, the company would transfer to other investors or decline the capital contribution ratio. Recently, the company has also looked for good real estate products for re-distribution. The company has registered for purchasing and re-selling 240 apartments in Era Town project from Duc Khai JSC.

In addition, HBC has decided to become the subcontractor for other projects in which the general contractors were foreign construction groups. In the first six months of 2011, the company estimated to gain revenue of 1.17 trillion dong, of which revenue from projects that HBC was the subcontractor would count for 20 percent.

Thanks for working as subcontractor in large-scale projects, HBC has had opportunities for accessing the new technologies, and gaining valuable experience to improve the production capacity and quality.

In order to maintain sufficient capital sources, from 2010, HBC planned to issue additional 6 million shares for construction activities and 50 billion dong corporate bonds for real estate projects. The company's management board has recently decided to purchase 1 million shares as fund shares.
 
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