InvestyKHANG DIEN HOUSE TRADING AND INVESTMENT JOINT STOCK COMPANY - Investy

KHANG DIEN HOUSE TRADING AND INVESTMENT JOINT STOCK COMPANY

KHANG DIEN HOUSE TRADING AND INVESTMENT JOINT STOCK COMPANY


Project Description

OVERVIEW

Khang Dien House Trading and Investment Joint Stock Company (KDH), formerly known as Khang Dien House Trading and Investment Limited Company, was established in 2001. The Company has its business in investment, development and trade of housing properties. KDH has come into operation under the model of a joint stock company since 2007. KDH’ s main business area is located in Hochiminh city with typical projects including Goldora Villa, Mega Ruby, Mega Village, The Venica, Lucasta low-level (villas, semi-detached houses) projects and Jamila apartment building project. KDH has been listed and traded on Hochiminh Stock Exchange (HOSE) since 2010.

MAIN BUSINESS

  • Investing and developing infrastructure, constructing, leasing and trading houses;
  • Providing consultation service in real estate;
  • Constructing civil and industrial works;

MARKET POSITION

  • The Company owns a land reserve of over 500 hectares in District 2, District 9 and the South-West part of Hochiminh City (Binh Chanh and Binh Tan).
  • KDH has already affirmed its own position in Hochiminh real estate market, mainly in the low-level-houses-in-compound segment with typical projects e.g. Goldora Villa, Mega Ruby, Mega Village, The Venica, Lucasta. In addition to villas and semi-detached houses, the Company expands its business to invest and develop apartmend building projects e.g.Jamila, Sapphira, Hermosa.

GROWTH STRATEGY

  • Propesting, researching and seeking for opportunities to participate in housing marketing in localities through expansion of land reserve in Hochiminh and other cities and provinces in harmony with the Company’s business orientation and customer demands;
  • Developing large-scale complete and sustainable urban areas in Vietnam;
  • Diversifying range of real estate products, especially houses to meet demands and to solve with differences in demand – supply in real market market;
  • Developing green spaces and utilities in projects invested and developed by the Company;
  • Cooperating and associating with potential partners to improve financial capacity to invest in real estate projects;
  • Maintaining strong financial foundation to own enough capacity to expose to unfavorable conditions of business environment;

PROSPECTIVES

  • According to BMI, Vietnam Construction Industry will continue to grow in the coming years. In addition, strong FDI flow and economic recovery are expected to boost the construction of houses, factories and warehouses in Vietnam. These factors will actively impact on Vietnam real estate.
  • Transport network in the Eastern part of Hochiminh city is being enhanced and completed with works including Thu Thiem bridge, Thu Thiem Tunnel, Long Thanh – Dau Giay Expressway, Lien Phuong Road, Do Xuan Hop Intersection, Belt road 2 intersection, which attracts people in Hochiminh and neigboring cities to buy houses there. Besides, housing demand in the south-west part of Hochiminh is also boosted with transport projects e.g. Binh Tien bridge, Phu Dinh – Trinh Quang Nghi bridge, and Ben Luc – Long Thanh expressway.

RISK

  • Risk of capital source and interest expense: A characteristic of construction industry is demand of sufficiently large & stable source of capital for timely completion of projects. For such typical feature, companies in this field have to expose to risks related to capital such as risk of insufficient funds or interest rate risk from borrowing activities.
  • Risk of settling payment: Typical features of construction industry are long progress of completing products and delayed payments, while investors’ funding estimates may not be fully proportionate to the scale of works along with late disbursement, leading to incorrect reflection of business effectiveness as well as revenues and profits of the Company recorded during accounting periods;
  • Risk of material source: Input factors in construction activities such as fuel, energy, construction materials, etc. tend to increase, resulting in influences on business activities.
  • Risk of market and competition: Construction market is mostly reliant upon investment plans, volume and progress of buildings; meanwhile, the number of enterprises entering this industry is on the increase, that leads to a more intensive competitiveness in supply of products and services, as well as poses pressure on construction prices, revenue and profit of the Company;
  • Other risks: Activities in construction sites under natural environmental conditions may be affected by natural disasters and unexpected climate conditions, which can also result in bad effects on Company’s business activities