Financial activities continue to be a "lifesaver" for Hapaco

Improved performance through investment reassessment

Hapaco Group Joint Stock Company (code HAP) is one of the first four enterprises to list shares on HoSE, officially listed on August 4, 2000. The company took advantage of the early stage of the stock market to increase capital and expand business operations.

However, not all businesses can take advantage of the capital market to expand into areas with stable cash flow such as water supply, power generation, real estate for rent, etc. Hapaco is still struggling to find growth momentum, while its shares have been trading below par value for many years.

Specifically, at Hapaco, in the period 2013-2023, the business performance of the enterprise is far lower than the industry average. In 2023, the return on assets (ROA) is only 1.36%, compared to the industry's 6.6%; the return on equity (ROE) is 1.45%, while the industry average is 11.4%.

In 2024, for the first time, Hapaco recorded an asset utilization efficiency of up to 6.89%, 4.23% higher than the industry average. Profit after tax increased by a record 456.1%, equivalent to an increase of VND 83.51 billion, to VND 101.82 billion. However, if looking closely at the profit structure in 2024, core profit (gross profit minus financial expenses, sales and administrative expenses) recorded a loss of VND 57.27 billion. Hapaco only escaped the loss thanks to a 641.8% increase in financial revenue, equivalent to an increase of VND 146.02 billion, to VND 168.77 billion.

According to the explanation, the sudden financial revenue mainly came from the accounting of 159.56 billion VND of the difference in fair value greater than the investment value according to the equity method for the investment in the subsidiary, when Hapaco increased its ownership ratio at Green International Hospital from 49.5% to 84.81%, transferring from an associate to a subsidiary.

It can be seen that increasing ownership and re-evaluating the investment in Green International Hospital has helped Hapaco record a sharp increase in profits in 2024, while significantly improving the efficiency of asset and capital use compared to previous years.

Rearrange your investment portfolio

In the first half of 2025, when gross profit was not enough to cover financial, sales and administrative expenses, Hapaco recorded a loss of VND 14.33 billion. After operating at a loss in the first half of the year, Hapaco suddenly approved a plan to transfer 21.19 million shares at Green International Hospital, equivalent to 35.31% of charter capital, at a price not lower than VND 20,000/share. If the deal is completed, Hapaco's remaining ownership ratio at the Hospital will be only 49.5% and this investment will be transferred from the subsidiary to the affiliated company.

As of June 30, 2025, Hapaco recorded an investment of VND 830.17 billion in Green International Hospital, equivalent to an average cost price of VND 16,313/share. Thus, if 21.19 million shares are successfully sold at a minimum price of VND 20,000/share, the Company expects to record a minimum profit of more than VND 78.1 billion. This profit will be consolidated into the business results of the divestment period and if the remaining investment is continued to be re-evaluated, Hapaco can continue to make a large profit compared to the current cost price.

Hapaco said the purpose of selling off capital at Green International Hospital is to focus resources on the 50,000 tons/year Tissue Paper Project and the Hapaco Social Housing Project.

Thanks to the extraordinary profit in 2024 from the revaluation of the investment, along with the expectation of the next divestment deal at Green International Hospital, HAP shares have attracted strong attention from investors. In the context of the booming stock market, HAP shares increased sharply by 59.3% in the first 9 months of 2025, from VND 4,320 to VND 6,880/share, the highest level since the second half of 2022.

However, after a hot increase, HAP shares are showing signs of "anchoring" at a high price range as liquidity has decreased and prices have remained flat. If excluding the impact from financial activities related to Green International Hospital, Hapaco's profits are still negative, making the stock valuation no longer attractive.

Overall, Hapaco’s core business has not shown any bright spots. The Company’s profits in 2024 and the foreseen future will mainly come from the acquisition and divestment of ownership at Green International Hospital. This is a notable risk for the next reporting periods.

Source: https://baodautu.vn/hoat-dong-tai-chinh-tiep-tuc-la-phao-cuu-sinh-cho-hapaco-d427144.html