Good news ahead of the VCG meeting
On the eve of the 2021 AGM of VINACONEX Joint Stock Corporation (code VCG), shareholders received good news when the Board of Directors submitted a plan to distribute bonus stocks from treasury stocks. Accordingly, more than 36.2 million treasury stocks will be distributed to shareholders at the rate of 9%.
According to current regulations, this bonus distribution is not subject to price adjustment on the closing date, so VCG's shareholders will benefit greatly. For example, if you own 10,000 shares, you will be rewarded with 900 shares multiplied by the current market price of VCG, the amount is up to nearly 45 million dong.
Along with the positive highlights in business activities, the market price of VCG stocks also broke out and created a new base price around 48,000 VND/stock. This price is almost twice higher than the stock price achieved by VCG when the Government divested from VINACONEX.
With the solid foundation established from the positive business results achieved in 2 years after the capital restructuring, the BOD of VINACONEX is very confident when submitting to shareholders the consolidated revenue plan of about 12,230 billion VND, an increase of 141% compared with 2020 performance result.
The target of after-tax profit in 2021 is expected to reach more than 1,000 billion VND, equal to 60% of the target in 2020 (because there was a sudden increase in profits from financial investment activities in 2020). The Corporation's leaders once shared about the orientation of shifting gradually profits to be allocated to 3 main fields of construction, real estate and financial investment.
Centralized and efficient administration
In the past 2 years, VCG has determined a development strategy with 3 main fields, creating a solid foothold for the business, which is construction, real estate and financial investment. VCG's BOD carried out activities to restructure, strengthen internal governance, improve financial capacity, and focus on building VINACONEX's brand, initially showing remarkable results.
Firstly, in the construction field, by the end of the first quarter of 2021, the value of construction contracts that VINACONEX has signed is estimated at nearly VND 15,000 billion. In which, some projects have achieved great value such as: 3 of the largest bidding packages of the East North - South Expressway (Phan Thiet - Dau Giay, Vinh Hao - Phan Thiet, Mai Son - National Highway 45); Danang Mikazuki Project; Long Son Petrochemical Complex; or some other public investment projects such as Vinh Tuy Bridge in phase 2, Hanoi People's Court, Central K Hospital...
In the field of real estate, VINACONEX has focused on completing investment procedures for a number of key projects under construction to early introduce products to market such as Cat Ba - Amatina project; 93-Lang Ha High-class apartment project; The extended Hoa Binh Boulevard urban area project in Mong Cai...
VINACONEX also actively accumulates land fund with the ambition to achieve 5,000 hectares of land by 2025, many projects are being implemented such as Tam Ky Resort hotel project, Quang Nam; Condotel Resort project along the coast of Tuy Hoa, Phu Yen; Urban residential area project at Km3, Km4 of Hai Yen, Mong Cai Ward…
With the financial investment field, VCG is holding a group of companies operating in efficient business fields (energy, electricity, water, education, labor export...). Maintaining or increasing the capital ownership ratio to ensure the right to control and operate the key companies with development prospects is the strategic direction that VINACONEX is pursuing.
Expanding overseas cooperation
Another highlight of VINACONEX is actively cooperating with well-known names in the world to catch the trend and raise the quality of products to international level. With the motto “If you want to go far, go together”, choosing partners who are experienced international brands will open up many new opportunities for VINACONEX. Names such as Hyundai, Posco, Taisei, Toyota Tsusho, Bluescope Lysaght, Mikazuki Corporation can be mentioned.
The fact that global-scale corporations shake hands with VINACONEX has shown that they appreciate its position and development potential, especially in the process of VINACONEX's efforts to become one of the leading business groups in Vietnam.
A representative of Hyundai Group once shared that they wish to approach and access the Vietnamese market, a dynamic economy with great potential for development. However, in the process of investing or connecting other international developers in Vietnam, they demand local partners with capacity, cultural understanding and the ability to develop large-scale projects. VINACONEX is one of such partners that Hyundai has cooperated in Vietnam.
Impressive financial picture
With many changes in operations, especially focusing on efficiency, 2020 is a great success year for VINACONEX. The Corporation's consolidated financial statements show that VCG's pre-tax profit reached VND 2,126 billion, 2.2 times higher than in 2019. Consolidated profit after tax of the whole system reached VND 1,690 billion, 2.15 times higher than the same period last year. As a result, VCG's earnings per share reached 3,667 VND, an increase of more than 150% compared to 1,462 VND in 2019.
VCG's cash flow was quite abundant when investment activities were continuously promoted, but cash and cash equivalents at the end of the year according to the consolidated report reached VND 1,995 billion. This amount at the parent company is VND 1,587 billion, double the same period last year.
With the makeover after 2 years of restructuring, many shareholders of VINACONEX said that they will continue to hold stocks and put their faith in the success of the Corporation in the coming time. The market is looking forward to the information and strategies announced at the 2021 AGM of VINACONEX scheduled to be held on April 27.
(According to tinnhanhchungkhoan.vn)
