LETTER FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS TO HODECO SHAREHOLDERS
Steadfast in Real Value – Resilient in Spirit – Breaking Through Challenges
Dear Shareholders and Investors of Ba Ria – Vung Tau House Development Joint Stock Company (HODECO),
Amid broad market corrections across the stock market in general and the real estate sector in particular, HDC’s share price has experienced downward pressure, temporarily falling deep below its book value. On behalf of the Board of Directors, I deeply sympathize with and fully understand your concerns regarding short-term fluctuations in your investment value.
However, from the perspective of an executive leader who has navigated HODECO through more than two decades of public listing and 36 years of corporate development, I reaffirm that: Short-term volatility in market cash flow does not alter HODECO’s intrinsic value, financial health, or sustainable growth potential. Members of the executive leadership are also major shareholders whose assets are directly tied to the survival and growth of the company. Therefore, our steadfast commitment and responsibility to enhancing shareholder value remain resolute and unwavering.
To provide you with complete confidence in the company’s strategic position, I would like to highlight the core pillars that reinforce HODECO’s strong internal strength:
1. Genuine Earnings Growth and a Safe Financial Structure
-
-
Breakthrough Business Performance: Building on the momentum of 2025, HODECO recorded a 4.3-fold year-on-year surge in net profit in Q1 2026 alone. The revenue target for 2026 continues to approach the VND 2,000 billion mark.
-
Delivering on Commitments to Enhance Shareholder Value: The company successfully completed its 2025 dividend stock issuance at a rate of 15%, increasing its charter capital to over VND 2,297 billion. This demonstrates the company’s capital accumulation capacity and genuine appreciation for the ongoing support of our shareholders.
-
Proactive Financial Risk Governance: The company maintains strict financial discipline, actively controlling and gradually reducing its debt ratio to safeguard a secure capital structure while preparing flexible fundraising solutions for key projects.
-
2. Hidden Asset Buffer and Strategic Advantage from Infrastructure Planning
-
-
Infrastructure Connectivity Advantage: The integration of HODECO’s core operating domain into Ho Chi Minh City’s expanded urban development space creates immense upside potential for real estate value across the company’s entire project portfolio.
-
Substantial Hidden Asset Safety Margin: The vast majority of HODECO’s land bank is recorded on the financial statements at historical cost and has not been revalued since its equitization in 2001. HDC’s current market capitalization stands at a significantly undervalued level, which is lower even than the remaining projected revenue from Phase 1 of The Light City project alone.
-
3. Solid Project Execution and Expansion of the Growth Ecosystem
-
-
Accelerating Key Projects: The company is focusing maximum resources on completing, delivering, and recognizing revenue from flagship developments: The Light City (Phase 1), Ngoc Tuoc 2 Hill Villa Area, Ecotown Phu My (Eco Home CC1), and Bien Da Vang, while proactively addressing legal procedures for Sea Village 3/2.
-
Pioneering Trends and Expanding the Value Chain: In addition to its traditional residential real estate segment, HODECO is actively preparing resources to expand into Industrial Real Estate. Concurrently, the company is intensifying cooperation with professional partners (such as Skool Hospitality) to optimize commercial operations and generate stable cash flows across its project portfolio.
-
4. Priority Action Program of the Executive Board
-
-
Optimizing Operational Cash Flow: Driving sales efforts, expediting debt recovery, and prioritizing the delivery of completed inventory.
-
Information Transparency and Enhanced Dialogue: Increasing both the frequency and quality of corporate communications, providing timely updates on legal milestones and project progress to the investment community.
-
Action-Oriented Alignment with Shareholders: The leadership team and major shareholders continue to allocate personal resources to increase their HDC shareholding when the market price trades significantly below its intrinsic value.
-
Dear Shareholders,
Having navigated through multiple market cycles in the real estate and financial sectors, HODECO has consistently overcome challenges through prudent governance, operational discipline, and an unwavering commitment to real asset values.
Short-term market headwinds cannot sway HODECO’s core strength and immense potential. On behalf of the Board of Directors, I extend my heartfelt gratitude to our shareholders for your enduring trust and long-term partnership. We commit to dedicating our full capability and management expertise to ensuring HODECO reclaims its true value and delivers rewarding outcomes for all of us.
Wishing our Shareholders good health, resilience, and success!
ON BEHALF OF THE BOARD OF DIRECTORS CHAIRMAN
(Signed)
Doan Huu Thuan
