1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
HFEN
Event Date
2020-11-24
IPO Date (Actual)
2020-11-11
Sector
Real Estate
Subsector
Real Estate Management & Development
Offer Range
$7.00-$7.00
Shares Offered
2.16M
8.57M
$58.5M
25.2%
Implied Upside vs Midpoint
Description
HF Enterprises Inc. is a diversified holding company principally engaged through its subsidiaries in property development, digital transformation technology and biohealth activities with operations in the United States, Singapore, Hong Kong, Australia and South Korea. We manage our three principal businesses primarily through our subsidiary, Alset International Limited (formerly known as Singapore eDevelopment Limited and referred to herein as “Alset International”), a public company traded on the Singapore Stock Exchange. Through this subsidiary (and indirectly, through other public and private U.S. and Asian subsidiaries), we are actively developing two significant real estate projects near Houston, Texas and in Frederick, Maryland in our property development segment. We have designed applications for enterprise messaging and e-commerce software platforms in the United States and Asia in our digital transformation technology business unit. Our recent foray into the biohealth segment includes research to treat neurological and immune-related diseases, nutritional chemistry to create a natural sugar alternative, research regarding innovative products to slow the spread of disease, and natural foods and supplements. We opportunistically identify global businesses for acquisition, incubation and corporate advisory services, primarily related to our existing operating business segments. We also have ownership interests outside of Alset International, including an indirect 16.8% equity interest in Holista CollTech Limited, a public Australian company that produces natural food ingredients, and an indirect 13.1% equity interest in Vivacitas Oncology Inc., a U.S.-based biopharmaceutical company, but neither of which company has material asset value relative to our principal businesses. Under the guidance of Chan Heng Fai, our founder, Chairman and Chief Executive Officer, who is also our largest stockholder, we have positioned ourselves as a participant in these key markets through a series of strategic transactions. Our growth strategy is both to pursue acquisition opportunities that we can leverage on our global network using our capital and management resources and to accelerate the expansion of our organic businesses. From a geographical perspective, we recognized 100% and 98% of our total revenue in the years ended December 31, 2019 and 2018 in the United States, respectively, and expect that our future revenue will continue to be concentrated in the United States. We generally acquire majority and/or control stakes in innovative and promising businesses that are expected to appreciate in value over time. We have historically favored businesses that improve an individual’s quality of life or that improve the efficiency of businesses through technology in various industries. Our involvement in various companies can usually be characterized in one of three ways: (i) businesses (typically ones that we have either created or acquired in their early stages) that we directly manage, while maintaining a majority ownership position; (ii) businesses where we hold a significant ownership position, and share management with our partners; and (iii) businesses that we acquire and hold a minority stake in, and where we do not manage such entity (although an affiliate of our company may serve on the board of directors), but where we view the financial stake as contributing to the strategic goals of our other businesses. For example, in our real estate business, which makes up the majority of our assets, our company’s leadership is engaged in all aspects of the management of our projects, and intends to remain so engaged in the future. In our biohealth segment, we are more likely to work with partners who will play a significant role in management. At the present time, we do not anticipate that passive investments, where we neither participate in management nor view the ownership position as adding particular strategic value to other businesses, will represent a significant portion of our company’s assets in the future. Our focus is on businesses where our engagement will be particularly significant for that entity’s growth prospects. Our emphasis is on building businesses in industries where our management team has in-depth knowledge and experience, or where our management can provide value by advising on new markets and expansion. We have at times provided a range of global capital and management services to these companies in order to gain access to Asian markets. We believe that our capital and management services provide us with a competitive advantage in the selection of strategic acquisitions which creates and adds value for our company and our stockholders. --- HF Enterprises Inc. was incorporated in the State of Delaware on March 7, 2018. Our principal executive offices are located at 4800 Montgomery Lane, Suite 210, Bethesda, Maryland 20814, telephone (301) 971-3940. We also maintain offices in Singapore, Magnolia, Texas, South Korea and Hong Kong. We maintain a corporate website at www.hfenterp.com.
HF Enterprises Inc annual income statement and balance sheet, FY 2020 to FY 2025, as reported in SEC filings.
| Metric | FY 2020 | FY 2021 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Revenue | $16.2M | $19.8M | $21.1M | $4.5M |
| Gross profit | $4.2M | $8.5M | $8.3M | $1.2M |
| Operating income | ($2.2M) | ($15.0M) | ($4.1M) | ($15.2M) |
| Net income | ($5.1M) | ($119M) | ($4.0M) | ($47.4M) |
| Metric | FY 2020 | FY 2021 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Total assets | $108M | $184M | $96.8M | $137M |
| Total liabilities | $9.7M | $13.9M | $6.6M | $6.9M |
| Total equity | $98.0M | $170M | $90.2M | $130M |
| Cash & equivalents | $31.7M | $60.8M | $27.2M | $25.2M |