Hoang Huy Investment Financial Services (HOSE: TCH) | Initiation Report, BUY – 1Y Upside +40.2%

Company Information

Hoang Huy Investment Financial Services JSC (TCH) was originally established in October 1995 as Hoang Huy Trading Co., Ltd. On October 5, 2016, TCH officially listed its shares on the Ho Chi Minh Stock Exchange (HOSE) under the ticker TCH. The company initially focused on trading heavy-duty trucks and trailers. Since 2016, TCH has pivoted into residential real estate development, leveraging land banks acquired through build-transfer (BT) contracts for old apartment redevelopment projects in Hai Phong. TCH is now a leading domestic real estate developer in the city. As of now, real estate accounts for approximately 83% of total revenue, making it the company’s core business, while truck trading contributes around 12% and is no longer a key growth driver.

Financial Performance

In FY2024, net revenue reached VND 4,667 bn (+22.7% YoY), while net profit after tax (NPAT) fell 9.7% YoY to VND 1,121 bn, mainly due to a 62% drop in financial income. This was driven by a reduction in short-term investments following TCH’s capital allocation to acquire a 49.6 ha land plot, now being developed into Hoang Huy New City 2. SG&A expenses rose 23.6% YoY.

As of end-FY2024, total consolidated assets stood at VND 15,306 bn. Inventories accounted for VND 8,472 bn (55.4% of total assets), of which VND 8,027 bn was real estate work-in-progress and VND 457.6 bn related to truck and parts inventories. The debt-to-equity ratio declined to 0.14x from 0.18x at the start of the year, remaining low versus peers in the real estate sector. Cash and held-to-maturity investments rose significantly, up 2.6x and 1.7x YoY, reflecting a strong liquidity position.

Key Investment Rationales

o       The real estate market is entering a recovery cycle

o       Hai Phong,  one of Vietnam’s fastest-growing cities, stands out as a key urban and industrial growth center.

o       TCH possesses a sizable, low-cost, and legally clear land bank in strategic locations across Hai Phong

o       TCH demonstrates strong project execution capabilities with minimal legal bottlenecks—an increasingly rare advantage in Vietnam’s real estate sector

o       Solid Financial Position

Valuation and Recommendation

We apply the RNAV and P/B approaches to value TCH stock. We recommend BUY for RNAV with a 12-month target price of 29,300 VND/share, representing apotential upside of 40.2% compared to the closing price of 20,900 VND/share on July 4, 2025.