Hoang Huy Service (HHS) 9 months’ profit exceeded the year target thanks to the profit from the associate
VietReader 24-10-2020, 23:11

In 9 months, HHS has exceeded 5% year profit target thanks to profit from joint ventures and associates up to 130 billion dong.


Hoang Huy Investment Service Joint Stock Company (Ticker: HHS) has announced the consolidated financial statements for the third quarter of 2020.


In the third quarter, HHS achieved 140 billion dong of revenue, 60 billion dong of profit after tax; increased by 96% and 145% respectively over the same period in 2019.


Although the gross profit is less than 10 billion dong, thanks to the appearance of profits from joint ventures and associates to 45 billion dong, HHS has reported a sharp increase in after-tax profit year on year.


Talking more about investments in joint ventures and associates, on September 30th, HHS invested 2367 billion VND in three affiliated companies and the fair value at this moment is nearly 2505 billion VND.





Source: Consolidated financial statements for the third quarter of 2020


In the third quarter, HHS has contributed 719 billion VND to CRV Real Estate Group JSC through the parent company Hoang Huy Investment and Financial Services JSC (TCH) and Hoang Giang Service Development JSC (public subsidiary). The total control rate and economic benefit rate as of September 30 are 4422% and 4412% respectively. At the end of Q2 the original cost of this investment is nearly 1224 billion dong.


Recently, the Board of Directors of HHS also approved the divestment of all capital contributions in two enterprises, namely Thanh Nam Investment Services Joint Stock Company and Truong Giang Service Development Joint Stock Company in 2020 with the aim of restructuring investments. In which, the ownership rates of HHS in the two enterprises are 48% and 48.5% respectively.





Source: H.K compiled from the consolidated financial statements of quarter III /2020


In the first 9 months, HHS achieved 443 billion dong of net revenue, 246 billion dong of profit after tax; up 18% and 126% respectively over the same period in 2019.


In the 9-month revenue structure, the truck and tractor segment is still the main source of revenue, contributing 85% of revenue. The real estate segment only contributes about 5%, the rest is other revenue.


In 2020 the business sets a target of 710 billion dong in revenue and 235 billion dong in profit after tax. Thus, after 9 months, HHS has fulfilled 62% of its revenue target and 5% of its profit target for the whole year. The fact that HHS exceeded the year target after 9 months is also thanks to the profit from joint ventures and associates up to 130 billion dong.


As of September 30 HHS’s total assets reached VND 3922 billion, an increase of 8% compared to the beginning of the year. In which, investment in joint ventures and associates accounts for 64% of assets.


Cash, cash equivalents and term deposits of HHS reached VND 387 billion at the end of Q3 and fell sharply by 80% compared to the beginning of the year. In capital structure, the enterprise does not use borrowed debt, the equity at the end of the third quarter is nearly 3702 billion dong.


Source: vietnambiz.vn – Translated by fintel.vn

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