“INHERITING VALUE, STEADILY SOARING” ROADSHOW
Wed , 23/12/2020, 11:20:22 (GMT+7)
After successfully restructuring ownership to an enterprise without state capital, Vinaconex focuses on three core areas of Construction, Real Estate, and Financial Investment. Vinaconex targets a revenue of VND 30,000 billion and profit of VND 2,000 billion by 2025, with the amount in construction and real estate areas accounting for 70% of revenue and profit.
On December 23, 2020, in Ho Chi Minh City, Vietnam Construction and Import-Export Corporation VINACONEX (VCG) and SSI Securities Joint Stock Company hosted the pre-listing roadshow named “Inheriting value, steadily soaring” to present investment opportunities in VCG shares before listing on the Ho Chi Minh City Stock Exchange.
On December 29, roughly 442 million VCG shares would be on the first trading session at a reference price of VND 41,800 per share, equivalent to a market capitalization of nearly VND 18,500 billion. VINACONEX will embark on a new journey with a number of development plans and strategies to further enhance VINACONEX's market position while also increasing chances to access large-scale capital mobilzation sources for projects in the coming time.
Construction – Retaining the top spot
Ranking among Vietnam’s top ten largest construction enterprises, Vinaconex has completed large-scale national construction projects in the civil, industrial, infrastructure, and traffic constructions, such as Thang Long Boulevard, National Convention Centre, Nhat Tan Bridge, Terminal T2 - Noi Bai International Airport, Noi Bai - Lao Cai Expressway, Cua Dat Hydropower project; Nghi Son Refinery and Petrochemical Complex, Long Son Refinery and Petrochemical Complex, etc.
VINACONEX is currently implementing construction projects worth around VND 15,000 billion. Despite the COVID-19 pandemic affection, the value of VINACONEX's new winning bid package in 2020 reached nearly VND 10,000 billion, ensuring a job source not only for 2020 but also for the following years thanks to the strategy of focusing on the segment of public-invested infrastructure projects and foreign-invested projects.
Regarding traffic construction, there’re bidding packages under the Eastern North-South Expressway project such as package 3 - XL (Phan Thiet - Dau Giay Expressway), package XL - 04 (Vinh Hao - Phan Thiet expressway) with a total value of about VND 5,500 billion, the Vinh Tuy Bridge Construction Investment Project and a number of other major traffic projects. As for civil construction, it can be mentioned Mikazuki Spa & Hotel Resort complex worth VND 1,010 billion, Hanoi People's Court, K Hospital, etc. In terms of industrial works, there’re main infrastructure constructions of Hoa Lac Hi-tech Park worth VND1,400 billion; Package G - Long Son Refinery and Petrochemical Complex, Tan My Hydropower Plant, Dak Ba Hydropower Plant; BW Bau Bang Project; Foxxcon project, etc.
Real Estate – Breaking through to create a new foothold
Vinaconex has a diversified real estate portfolio including residential real estate, resorts, and industrial park real estate. Its land banks covers about 2,000 hectares in many localities across the country such as Hanoi, Hai Phong, Quang Ninh, Da Nang, Quang Nam, Phu Yen, etc.
Some typical investment projects that VINACONEX has been implementing: Regarding housing products, there are the 93 Lang Ha Project (Hanoi) enhancing the VINACONEX brand in the high-end real estate segment, the Hoa Binh Boulevard urban area (Mong Cai - Quang Ninh), etc. In terms of resort real estate, VINACONEX has just launched the Cat Ba Amatina Project (Hai Phong), with a scale of 172 hectares and won the bidding packages of Tuy Hoa Project (Phu Yen), Tam Ky project (Quang Nam) in some coastal cities. As for industrial park real estate, it is worth mentioning typical projects such as the investment project on construction and business of technical infrastructure in Hoa Lac Hi-Tech Park 2 (Hanoi), Son Dong Industrial Cluster Project (Hanoi).
Effective Financial Investment
Vinaconex has carried out financial investment activities in many enterprises operating in sustainable business fields with high-profit margins such as clean water, education, hydropower, labor export, etc. Not only preserving or increasing its ownership ratio, but Vinaconex also streamlined the investment portfolio, and divested capital in underperforming businesses pursuant to the corporate development strategy.
Mr. Dao Ngoc Thanh, Chairman of the Board of Directors of VINACONEX, stated at the roadshow, “In the next 5 years, VINACONEX strives to achieve an annual growth rate of 15-25%, a dividend rate of 12%-20% per year, becoming the Top 3 largest construction contractors and Top 10 largest real estate investors in Vietnam, developing a project land bank of about 5,000 hectares by 2025. Listing on HoSE will be a first step in the process of enhancing VINACONEX’s stature and reputation.”
According to Mr. Nguyen Duc Anh - Head of Institutional Sales, and Brokerage Services at SSI Securities Corporation, VINACONEX owns a 30-year history of developing a reputable brand in Vietnam in the field of construction and real estate. With the official milestone of transforming into an enterprise without state capital since 2018 and implementing a strong and effective restructuring process, VINACONEX is in a good position for steady growth in the years to come.
As of September 30, 2020, VINACONEX has total assets of nearly VND 19,357 billion and equity of VND 8,979 billion. Accumulated profit after tax in the first nine months of the year was VND 1,451 billion, an increase of 160% year-on-year and equivalent to 177% of the plan approved by shareholders at the annual meeting in 2020.
