Bamboo Capital H1 profit hit $38 mln, debt-to-equity ratio drops

Bamboo Capital Group (BCG) recorded an after-tax profit of VND877 billion ($37.6 million) in the first six months of the year, up 81.5% year-on-year.

After six months, the multi-sector Vietnamese corporation has fullfilled 30% of the year's revenue plan and 40% of the year's profit target as revenues from big projects like Malibu Hoi An and Hoian d'Or will be recorded in the third and fourth quarters.

BCG's net revenue reached VND2,134 billion ($91.43 million) in H1, a 47.4% rise year-on-year, according to its consolidated financial statement.

The group's revenue in the period mainly derived from three core businesses. Construction and infrastructure contributed VND737,6 billion ($31.6 million) or 34.6%, while the figure for renewable energy and real estate was VND584.7 billion and VND543.4 billion, respectively.

The construction and infrastructure segment still maintained stable contributions, while renewable energy generated stable cash flow and made an increasing contribution to BCG's revenue mix.

Since the beginning of the year, BCG has reported 27.4% in revenue from renewable energy, while the figure recorded at the end of last year was 20%.

In the second quarter, the group's consolidated net revenue and after-tax profit reached VND881 billion ($37.75 million) and VND354 billion ($15.17 million), up 8.2% and 12.4% over the same period last year, respectively.

As of June 30, BCG's total assets reached VND44.4 trillion ($1.9 billion), up 17.7% compared to the beginning of the year, mainly from the increase in long-term investment assets driven by real estate and renewable energy projects completed in H1.

In Q2, BCG issued 57 million shares to strategic investors through private placements, raising its charter capital to VND5,033 billion ($215.64 million). As of June 30, 2022, its equity hit VND13,701 billion, up 64.1% compared to the beginning of the year.

Thanks to its efforts to increase capital and control debt, BCG's financial leverage indicators have improved markedly. Total debt-to-equity has fallen from 3.51 times at the end of 2021 to 2.24 times at the end of June this year. This means BCG is very close to the goal of reducing this ratio to less than two times and ideally, to 1-1.5 times.

Besides, the debt-to-equity ratio also decreased to 1.04, meaning that financial risks have been reduced to a safe level, its financial statement notes. "This is very positive as the figure signals that shareholders and investors can expect solid developments from BCG in future."

BCG said it plans to continue mobilizing capital from domestic and international markets so debt ratio indicators can be brought back to the ideal level by the end of 2022 or the beginning of 2023.