Hoang Anh Gia Lai Group

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Hoang Anh Gia Lai Group
Joint Stock Company
Traded as HOSE: HAG
Industry Furniture, Real estate, Rubber, Sugar, Football, Mining, Electricity
Founded 1990
Founder Doan Nguyen Duc
Headquarters Pleiku, Vietnam
Key people
Doan Nguyen Duc (chairman)
Nguyen Van Su (general director)
Nguyen Van Ton (Supervisory Board)
Revenue 4,399.5 bn VND (2012)
613.8 bn VND (2012)
365.2 bn VND (2012)
Total assets 21,284 bn VND (2012)
Number of employees
9842 (2011)
Website http://hagl.com.vn/
Footnotes / references
[1]

Hoang Anh Gia Lai Group (also Hoang Anh Gia Lai Joint Stock Company, Công ty Cổ phần Hoàng Anh Gia Lai, abbreviated as HAGL or HAG) is a diversified company headquartered in Pleiku, Vietnam.

From a small furniture producer the company diversified into other industries such as rubber, finances a football club (Hoang Anh Gia Lai Club) and was Vietnam's largest property developer in 2010[2] and the second largest in 2011 (behind Vingroup) .[3] It has also grown significantly outside of Vietnam, with investments of around $1bn in Laos, hundreds of millions in Myanmar, $100m in Cambodia and tens of millions of dollars in Thailand.[4]

History[edit]

Hoang Anh Gia Lai was set up in 1990 as a small factory in Pleiku producing furniture and employing 200 workers. Another wood processing plant was added in 1993 in the suburbs of Pleiku. The company diversified into granite processing in 2002 and later real estate and hotels.[5]

HAGL was registered as a joint stock company in 2006.[5]

Industries[edit]

Real estate[edit]

HAGL is established in Vietnam's residential property development business, with a focus Ho Chi Minh City's mid-tier market.[6] It has secured enough land for proposed projects for the period from 2012 to 2016. The land has been procured at prices lower than the current market value (May 2011), resulting in prospects for high profit margins.[6]

HAGL built the athletes' village for the 2009 Southeast Asian Games in Vientiane, Laos. In return, it received a large rubber concession in Laos' north-east.[2] The company is developing an 8ha complex in Yangon, Myanmar including a hotel, mall, offices and apartments with a total planned investment of US$ 300 million. The project was approved in December 2012 after long negotiations.[7]

HAGL also operates a chain of 4 and 5 star hotels and resorts in Ho Chi Minh City, Da Lat, Da Nang, Nha Trang, Quy Nhon etc.[5]

Rubber and other cash crops[edit]

HAGL rubber plantation in Attapeu Province

HAGL operates rubber plantations in the Vietnamese provinces of Gia Lai and Đắk Lắk, as well as Cambodia and Laos.[8] It is investing at least US$225 million to expand the area of its rubber plantations to 51,000 by 2012, at least 25,000 of which are being planted in Laos.[9] It has acquired rights to grow rubber trees in Attapeu Province in the south-east of Laos[9] and in the north-east of the country.[2] The rubber plantations are also expected to provide three million cubic meters of wood, which will be used in the group's wood processing and furniture business.[9] A major customer buying rubber from HAGL is Michelin.[10]

HAGL has a subsidiary and several joint ventures in the rubber industry:[5]

  • HAGL Rubber (200bn VND capital, 99% owned by HAGL)
  • Hoang Anh - Quang Minh Rubber (100bn, 57.5%)
  • Ban Me Rubber (25bn, 66.6%)
  • Hoang Anh - Mang Yang Rubber (45.39bn, 40%)

HAGL is currently expanding into the sugar industry. Construction of a $100 million sugar industrial cluster started in Attapeu Province of Laos in November 2011.[11] Production of refined sugar and electricity began in January 2013.[12]

Energy[edit]

HAGL has been investing in electricity projects, mainly hydro power. Construction of two dams in the north-central province of Thanh Hóa started in 2009 at a cost of around 500bn VND.[2] Several other projects are being planned or under construction in the Central Highlands of Vietnam.[13] HAGL has three hydro power projects, as well as a 28MW thermo-power plant project, in Laos[9] Electricity from these power plants will be sold to a Lao partner rather than Vietnam's EVN because the former's prices are around 30% higher.[9]

Some of HAGL's power plants are developed by its subsidiary HAGL Hydro Power (CTCP Thủy Điện HAGL) which has a capital stock of 100bn VND, 70% of which is owned by HAGL Group. Other joint ventures include the following:[5]

  • Hoang Anh Dakbla Hydro Power (110bn, 70%)
  • Hoang Anh Phat Tai Hydro Power (100bn, 75%)
  • Hoang Anh Tona Hydro Power (150bn, 94.38%)

Mining[edit]

HAGL has recently been diversifying into mining. It has subsidiaries and joint ventures in the Central Highlands South Central Coast and North Central Coast of Vietnam and Xekong Province of Laos:[5]

  • HAGL Mining (200bn VND, 75% owned by HAGL Group)
  • Gia Lai Mining (140bn, 51%)
  • Quảng Ngãi Mining (100bn, 80%)
  • Hoang Anh Thanh Hóa Mining (200bn, 83.7%)
  • Kbang Mining (100bn, 66.93%)
  • Hoang Anh GL - Kon Tum (50bn, 83.7%)
  • Hoang Anh Xekong Mining (5.3bn, 83.7%)

Financial information[edit]

[1][5] Revenues (bn VND) Profit before tax (vn VND) Net profit (bn VND)
2012 4,399.52 524.89 365.24
2011 3,152.11 1,701.90 1,325.32
2010 4,526.47 3,017.41 2,222.08
2009 4,370.25 1,743.5 1,286.9
2008 1,885.15 1,006.16 765.34
2007 1,589.43 869.71 622.34

Financing[edit]

Apart from domestic bank loans, HAGL has been able to tap into international financial markets to finance its rubber and hydro power projects. It is Vietnam's first company to list global depository receipts (GDRs) in 2011, from which it raised 56.5 million US$.[3]

It has also issued bonds in the Singaporean market. One of its main investors there has been Singapore's government-owned Temasek Holdings, which invested 110 million US$ until May 2011 and spent another 5.39 million (1.13 trillion VND) in July 2011.[14]

References[edit]

  1. ^ a b HAGL Audited consolidated financial statements for 2012
  2. ^ a b c d "Hoang Anh Gia Lai builds its brand outside Vietnam". Financial Times. 2010-09-09. Retrieved 2011-07-22. 
  3. ^ a b "Hoang Anh Gia Lai Raises $56.5 Million With London GDR Listing". Bloomberg. 2011-03-23. Retrieved 2011-07-22. 
  4. ^ "Hoàng Anh Gia Lai đã đầu tư hàng tỷ USD vào 4 quốc gia trong khu vực". Gafin.vn. 14 January 2013. Retrieved 15 January 2013. 
  5. ^ a b c d e f g GaFin.vn profile
  6. ^ a b "FITCH rates Hoang Anh Gia Lai's USD notes 'B(exp)'; affirms IDRrs at 'B'". Reuters. 2011-05-03. Retrieved 2011-07-22. 
  7. ^ "Myanmar chính thức cấp giấy phép cho dự án 300 triệu USD của HAGL". Gafin.vn. 6 December 2012. Retrieved 6 December 2012. 
  8. ^ HAGL Rubber website
  9. ^ a b c d e "HAGL diversifies investment portfolio in Laos". The Saigon Times. 2011-03-17. Retrieved 2011-07-22. 
  10. ^ "HAGL cân nhắc đề nghị bao tiêu mủ cao su của Tập đoàn Michelin". Gafin.vn. 14 January 2013. Retrieved 15 January 2013. 
  11. ^ "Vietnam group starts huge sugar project in Laos". Vietnam Investment Review. 2011-11-23. Retrieved 2011-12-07. 
  12. ^ "HAGL: Nhà máy đường tại Lào có sản phẩm đầu tiên". Gafin.vn. 17 January 2013. Retrieved 17 January 2013. 
  13. ^ HAGL Hydro Power website
  14. ^ "Temasek invests more in Hoang Anh Gia Lai". Tuoi Tre News. 2011-07-06. Retrieved 2011-07-22.