One Capital Hospitality (OCH) Unexpectedly Reports Profits in 2024, More Than 3 Times the Annual Target

Three Consecutive Years of Profit Growth

Recently, One Capital Hospitality Joint Stock Company (HNX: OCH) announced its business results with impressive figures.

Amid a challenging economic environment, OCH recorded a pre-tax profit of over 48 billion VND in Q4/2024, reversing the situation compared to the same period last year.

With two positive quarters in the second half of the year, OCH not only made up for the losses from the first half but also reported a substantial profit for the entire year, with over 208 billion VND in pre-tax profit and 176 billion VND in after-tax profit, an increase of nearly 50% compared to the same period last year.

This marks the third consecutive year that the company has recorded positive business growth after the record losses in 2021.

In 2024, OCH set a revenue target of nearly 1,080 billion VND and pre-tax profit of over 63 billion VND. With the achieved results, OCH has exceeded its profit target for the fiscal year by more than three times.

As of December 31, 2024, the company’s cash and cash equivalents amounted to 170 billion VND, showing a slight increase compared to the beginning of the year.

Notably, OCH reduced its loans and financial lease liabilities by 250 billion VND, which helped the company reduce financial pressure and improve liquidity.

In the first half of 2024, OCH did not make a profit partly due to high financial costs when the company borrowed funds to supplement capital for production and business activities. With the debt reduction, OCH is now less burdened and has greater potential for business recovery in the near future.

Great Potential from the Real Estate Sector

In 2024, OCH not only recorded strong profit recovery but also continued to develop its strategic business segments, including resort real estate, hotels, and fast-moving consumer goods (FMCG) with strong Vietnamese cultural values.

One of the key business areas for OCH in 2024 is resort real estate and hotels, particularly projects in Nha Trang.

StarCity Nha Trang – OCH’s 5-star hotel project, had a successful year, achieving a gross profit (GOP) of 13.4 billion VND, up 86% compared to 2023. Despite high fixed costs such as depreciation of fixed assets and land lease payments, StarCity Nha Trang still recorded a profit of 29 billion VND in 2024.

StarCity Nha Trang – OCH’s 5-star hotel project had a successful year!

In addition, Sunrise Nha Trang – another OCH project – also achieved positive results. The room occupancy rate at Sunrise Nha Trang in 2024 reached 71.73%, exceeding the target of 66.93%. The gross profit (GOP) of Sunrise Nha Trang reached 17.8 billion VND, an increase of 45% compared to 2023, and 60% above the target set for 2024.

However, OCH believes that this project has not yet achieved the expected profit due to high depreciation costs and land lease payments, which have reduced net profit.

Earlier at the 2024 Annual General Meeting of Shareholders, OCH’s leadership shared that in the coming time, OCH aims to grow its asset scale and revenue by 3 to 4 times.

However, the current food segment, including the brands Kem Tràng Tiền and Bánh Girval, has not met the expected growth and is insufficient to support this expansion. Therefore, the company decided to shift its strategic direction, focusing its resources on real estate, where there is higher profitability potential and which can help the company achieve its long-term growth goals without relying on the development of the current food sectors.

Accordingly, in the next 5 years, the parent company of Kem Tràng Tiền plans to build and pursue M&A activities to expand its hotel and office building portfolio in major cities through investments in affiliated companies, such as the Melia Ha Long Bay project, MGallery Ninh Vân Bay, Dusit Cung điện Từ Hoa Hanoi…

The significant successes in the real estate sector, along with the positive results this segment brought to OCH in 2024, have partly confirmed that the strategy of focusing on real estate investment is not only sound but also a reasonable direction for the company.

Ambitions to Take the Food Sector Global

Alongside real estate, OCH is also focusing on investments in the fast-moving consumer goods (FMCG) sector, particularly products with high cultural value that reflect Vietnam’s unique identity.

In the second half of 2024, through its subsidiary Kem Tràng Tiền, OCH launched a new product line called Bánh Tràng Tiền, which includes products such as Coconut Com Cake, Phu The Cake, and recently, Bánh Chưng Tràng Tiền.

Bánh Chưng Tràng Tiền – a new product in OCH’s Bánh Tràng Tiền line in 2024!

OCH has also made significant investments in building and developing its FMCG brand through its acquisition of 33 million shares in Givral Bakery Joint Stock Company and other assets to fund the establishment of One Capital Consumer Joint Stock Company (OCC) in January 2025.

OCC was founded with the vision of becoming the leading premium FMCG company in Vietnam. OCC will focus on developing FMCG brands with distinctive cultural values.

OCC will manage a portfolio of FMCG brands, helping OCH expand its influence and enhance its brand value in the FMCG sector, thereby increasing OCH’s presence in both domestic and international markets.