Spending 1,000 billion VND to establish Hoa Sen Home, tycoon Le Phuoc Vu has ambition to IPO his 'trump card'

Hoa Sen Group invested 1,000 billion VND to establish Hoa Sen Home, preparing for separation and IPO, aiming to strongly develop the modern construction materials retail sector.

Mr. Le Phuoc Vu - Chairman of the Board of Directors of Hoa Sen Group - Photo: HSG

Hoa Sen Group Joint Stock Company (Hoa Sen Group - code HSG) has just announced a resolution to contribute capital to establish Hoa Sen Home Joint Stock Company with a charter capital of 1,000 billion VND. Of which, Hoa Sen Group holds up to 99% of shares, equivalent to 990 billion VND.

Hoa Sen Home's headquarters is expected to be located on the 3rd floor, commercial base of Sarimi complex (72 Nguyen Co Thach, An Khanh ward, Ho Chi Minh City).

The new business operates primarily in the retail of hardware, paint, glass, building materials and installation equipment.

The Board of Directors of Hoa Sen Group also unanimously authorized Mr. Le Phuoc Vu - Chairman of the Board of Directors of the Group - to represent Hoa Sen's capital contribution in the newly established company as well as in future charter capital increases (if any).

According to the annual report for the 2023-2024 fiscal year, the group aims to turn Hoa Sen Home into an independent company, taking over all business operations of the existing supermarket system.

This separation is considered an important step to help operate more professionally and effectively, while preparing for the IPO and stock listing plan in the following fiscal years.

Starting with 35 stores in 2021, the Hoa Sen Home chain has now expanded to more than 125 modern supermarkets, managing more than 400 store branches nationwide. Hoa Sen Group aims to open 25-35 new stores each year, aiming for a scale of 300 stores by 2030.

According to the plan, in the period of 2025-2026, Hoa Sen Home will be developed into an independent company in charge of distributing construction materials and interiors, with Hoa Sen Group's ownership ratio maintained at over 99%.

When the company is operating stably, the management system is complete and the market is favorable, HSG will conduct an IPO and list its shares.

Hoa Sen Home Store - Photo: HSG

At the annual shareholders' meeting earlier this year, Mr. Le Phuoc Vu acknowledged that the steel industry is going through an extremely difficult period, when total domestic production capacity is three times higher than consumption demand, while the export market is increasingly narrowing.

According to Mr. Vu, in the context of excess supply and declining demand, maintaining a stable growth rate has been a big challenge for businesses in the industry.

In that situation, he believes that focusing on the domestic market is a more reasonable and sustainable direction in the current period. The Group will promote the development of the Hoa Sen Home system, considering it a new strategic pillar alongside the traditional steel production sector.

According to Mr. Vu, this is a favorable time to expand the store network and increase market presence, when the traditional business model is gradually losing its foothold.

He believes that in the next few years, small retail building materials stores will be replaced by modern supermarket chains, and Hoa Sen Home will become a model for this trend.

Hoa Sen Group Joint Stock Company has just announced its fourth quarter report for the 2024-2025 fiscal year, recording a net profit of VND85 billion in the context of difficulties in exporting galvanized steel. Quarterly revenue decreased by 17% to VND8,356 billion, but gross profit margin improved to 12.2%, helping gross profit increase by 20%, reaching more than VND1,021 billion.

Although financial revenue decreased by nearly 60%, financial expenses were reduced by 30%, thereby supporting overall profits. Compared to the loss of VND186 billion in the same period last year, Hoa Sen has shown clear signs of recovery.

For the entire 2024-2025 fiscal year, the group recorded revenue of more than VND36,500 billion, down 7% year-on-year, but after-tax profit increased by 42%, reaching more than VND730 billion - the highest level in the past three years.

This result exceeded 46% of the profit plan in the high scenario (500 billion VND) and exceeded 83% compared to the conservative scenario (400 billion VND).

Nhat Quang

Source: https://tuoitre.vn/chi-1-000-ti-dong-lap-hoa-sen-home-dai-gia-le-phuoc-vu-tham-vong-ipo-at-chu-bai-20251113181108575.htm