The annual meeting was held on May 28, and EVG shareholders approved revenue and profit-after-tax targets of VND 1,550 billion and VND 113 billion for 2025, respectively, reflecting a 30% increase and a tripling from 2024’s performance. Regarding profit distribution, the company did not pay dividends for 2024 and plans to distribute 5% dividends for 2025.
EVG’s 2025 Annual General Meeting of Shareholders was held on May 28 at the Daewoo Hotel in Hanoi – Photo: EVG
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Why has the investment in the Van Don project increased by 50%?
According to the minutes of the Annual General Meeting of Shareholders, shareholders questioned the increase in the total investment of the Crystal Holidays Harbour Van Don project from VND 3,612 billion to VND 5,643 billion. Mr. Le Dinh Vinh, Chairman of the Board of Directors of EVG, attributed this to various reasons.
Firstly, the initial total investment was calculated based on the detailed planning at a scale of 1/500 and was, therefore, only an estimate. It was only after the basic design and construction drawings were completed that the investor could accurately calculate the value of the investment items, leading to an increase in the total investment, specifically in the number of beds and accompanying equipment.
Secondly, at the end of 2022, the Ministry of Construction issued the National Technical Regulation on Fire Safety for Buildings and Works, which included numerous new provisions on fire prevention and control, resulting in a significant increase in the project’s investment costs to comply with the regulations.
Thirdly, the operator, Centara Hotels & Resorts, provided advice and made higher technical demands on the building and apartment equipment than the initial design to ensure international five-star hotel standards.
Fourthly, the continuous increase in the prices of construction materials (cement, steel, sand, and gravel) and labor costs over the past time has led to higher investment costs.
Regarding inquiries about the project’s gross profit margin, EVG representatives stated that it is still early to determine as the project is in the investment construction phase and is expected to be completed by 2027. The sale of tourism apartments is ongoing, and at this point, it is not possible to calculate the project’s revenue and expenses to determine the gross profit margin. Only provisional revenue and profits can be recorded for each reporting period. Moreover, the project belongs to the resort real estate segment, and cash flow comes from both the sale of tourism apartments and long-term accommodation operations.
“The investor’s purpose is not just to build and sell to make money, but also to operate and exploit it for the long term. The cash flow from tourism accommodation operations will provide sustainable revenue in the future. The sales pace will also depend on each building and the most opportune time, without the pressure to sell everything like a housing project” – Mr. Vinh replied, adding that with the potential for medium and long-term price increases, the investor is not under pressure to sell at all costs. Therefore, the project’s actual profit will only be known in 2 to 3 years.
The Crystal Holidays Harbour Van Don tourism, resort, and entertainment complex has a land area of 2.6 hectares, comprising 5 hotel and tourism apartment buildings ranging from 28 to 34 floors, a 1,500-seat international convention center with 4 floors, and auxiliary works. According to the plan, the project is expected to be operational in the first phase in Q3 2025. In 2024, the total investment of the project was adjusted to VND 3,643 billion.
 Source: Crystal Holidays Harbour Van Don Project Website
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Sharing information about the HH5 An Khanh project, the Chairman of EVG said that the company participated with several partners, and the company has only made a deposit to receive a partial transfer of the project because capital is currently being balanced and allocated to many projects simultaneously. The company’s participation rate is 15%, and there are flexible change clauses.
The project implementation was delayed as it had to wait for the investor to complete the legal procedures and finalize the investment plan before proceeding with the partial project transfer. As EVG is not yet the investor, it cannot independently handle the procedures.
Another significant issue that has arisen is that since the deposit made by EVG is borrowed money, interest must be paid periodically. If the project cannot be implemented soon, it will significantly affect the annual profit targets.
No plans for additional stock issuance
Regarding capital availability for project development and the timing of stock issuance to raise capital, Mr. Vinh stated that the parent company’s equity capital includes nearly VND 2,153 billion in charter capital and surplus capital from retained earnings. To allocate this capital reasonably and efficiently for investment needs, it is necessary to prioritize and sequence investments rather than spreading it evenly.
Secondly, it is essential to leverage multiple investment sources, including collaborations and partnerships with other entities. Thirdly, capital utilization must be optimized, considering when and where to allocate funds. Finally, a share issuance to increase charter capital should be considered. For the Van Don project, only about VND 500 billion was borrowed, with the remaining capital coming from equity and sales revenue.
However, the Chairman of EVG stated that the market has been unfavorable recently, and EVG’s stock is under control. Moreover, there hasn’t been significant capital investment pressure over the past three years due to legal procedure-related delays in project implementation. The management of EVG will consider presenting a plan for capital increase through share issuance at an appropriate time, possibly this year or the next.
“We would like to share that the stock market has been subdued lately, and not only EVG but also other businesses have been limited in raising capital through this channel, shifting instead to bond issuance, credit mobilization, and other financial instruments” – EVG leadership shared.
 Mr. Le Dinh Vinh, Chairman of the Board of Directors of EVG, speaks at the meeting – Photo: EVG
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Considering an IR campaign
According to EVG’s leadership, the stock price is lower than its book value and intrinsic potential, but this is a common situation in the stock market, not unique to EVG. In the past 2-3 years, stocks in the market have entered a downward cycle. Many large-cap stocks are also undervalued relative to their book value. This is due to the influence of various macro and micro factors, both domestic and international.
The classification of the stock into the warning and control groups has also impacted investor confidence. Supporting factors for EVG stock liquidity (margin lending) have been limited, and financial performance has not yet broken through… Additionally, EVG stock is only suitable for long-term investment, not speculation or short-term trading.
“Since April 2025, EVG stock has been removed from the control group and margin lending has resumed. Macroeconomic factors have improved, and investor confidence is gradually being restored. The company is striving to overcome this situation by improving production and business performance, as well as increasing its presence in the market and implementing plans to attract strategic shareholders” – EVG leadership stated.
Regarding the purchase of treasury stocks or increasing the ownership ratio of leaders, the management of EVG stated that they would consider it if necessary, but the current situation has not reached that point. As for inclusion in the portfolio of domestic ETFs or running IR campaigns, the company is ready to support liquidity and improve stock prices.
– 15:18 02/06/2025
The Race to the Top: Banks Boost Capital, Prepare to Dish Out Hefty Dividends
The SeABank, SHB, Techcombank and Nam A Bank are set to expand their chartered capital, having received approval for their respective plans to increase shareholder value. This development underscores the banks’ robust financial health and strategic vision, as they fortify their positions in Vietnam’s dynamic banking sector.
