Bamboo Capital profit reaches $23.3 mln in 2022

By Trang Nguyen
Sat, January 21, 2023 | 2:16 pm GMT+7

The Bamboo Capital Group (BCG), a leading multi-sector corporation in Vietnam, posted after-tax profit of VND546.4 billion ($23.3 million) in 2022, while its financial indicators were stable.

The profit was down 45% year-on-year and only 24.8% of its target. The group's net revenue reached VND4,532 billion ($193.3 million), up 75% and reaching 62.5% of its plan.

A representative from BCG said that the failure to achieve its 2022 targets was because they were very ambitiously based on positive assessments of the market at the beginning of the year.

"In addition, the real estate market and the renewable energy segment were subject to policy changes as well as the deteriorating business environment in the second half of the year, which partly affected the progress of projects," the rep added.

Real estate is BCG's biggest source of revenue in the fourth quarter of 2022. Photo courtesy of the company.

Real estate is BCG's biggest source of revenue in the fourth quarter of 2022. Photo courtesy of the company.

Faced with these challenges, BCG adjusted its business strategy, focusing all its resources on overcoming immediate difficulties, while prioritizing minimizing risks. In 2022, the company continued to be profitable, and financial indicators were also stable.

In the fourth quarter of 2022, BCG recorded net revenue of VND1,221 billion ($52.07 million), up 78.3% year-on-year.

Major sources of revenue were real estate with VND272 billion ($11.6 million), renewable energy with VND207 billion ($8.83 million), and construction-infrastructure with VND616 billion ($26.27 million).

According to the company, fluctuations in the foreign and domestic macroeconomy and the continuously increasing interest rates had created heavy financial pressure, making its after-tax profit during the quarter a negative VND339 billion ($14.46 million).

The high price of input materials and low demand for products also had a negative impact on the company's business segments.

Besides, interest expenses increased sharply, and capital mobilization was tight, almost freezing the merger and acquisition (M&A) market. BCG did not conduct any transactions in the fourth quarter.

At the end of 2022, BCG's total assets stood at VND44,006 billion ($1.88 billion), up 17% compared to the beginning of the year, mainly from an increase in long-term investment assets due to real estate and renewable energy projects completed during the year.

Total debt was curbed with an increase of only 3%, and new projects were financed by equity raised from capital increases in 2022 as approved at the general meeting of shareholders.

Thanks to these efforts to increase capital and control debt, BCG's financial leverage indicators in 2022 markedly improved. Total debt to equity decreased from 3.5 times at the end of 2021 to 2.2 times at the end of 2022. BCG was very close to its goal of reducing this ratio to less than two times and ideally to 1-1.5 times.

In addition, the debt-to-equity ratio also decreased to 1.1 times, which meant that financial risks were reduced to a safe level. BCG also said that in 2023, the company has no bond payments due. This is a positive sign for shareholders and investors to expect solid developments at BCG in the future.

At the end of 2022, BCG's cash flow statement showed that the net cash flow from operating activities, although still negative, had significantly improved by 70% compared to 2021. This improvement was due to an increase in receivables and inventory value, mainly from real estate projects that were in the handover stage, the company said.

BCG leaders said that in 2022, there were many changes and challenges, forcing the group to look deeply into its internal business workings and restructure personnel and business lines to consolidate and improve the strength of the business, waiting for the opportunity to climb when the market recovers.

Comments (0)
  • Read More
Initiative to position Malaysia as Southeast Asia’s digital hub

Initiative to position Malaysia as Southeast Asia’s digital hub

Malaysia is positioning itself as Southeast Asia's digital hub through its digital agenda program, a move aligned with the nation's transition towards a high-technology economy.

Southeast Asia - Thu, May 8, 2025 | 5:45 pm GMT+7

Central Vietnam province proposes including geothermal power project in national power plan

Central Vietnam province proposes including geothermal power project in national power plan

Authorities of Binh Dinh province have proposed the Ministry of Industry and Trade include the 15-megawatt Hoi Van geothermal power plant project in the revised National Power Development Plan VIII (PDP8).

Energy - Thu, May 8, 2025 | 4:56 pm GMT+7

Vietnam firms vow to intensify cooperation with US partners, facilitate country trade talks

Vietnam firms vow to intensify cooperation with US partners, facilitate country trade talks

Major Vietnamese enterprises have committed to intensifying cooperation with U.S. partners from now until June 2025 to realize signed agreements and MoU, paving the way for trade talks with the U.S.

Economy - Thu, May 8, 2025 | 4:19 pm GMT+7

Phu My Fertilizer becomes main sponsor of Vietnam Women’s Volleyball Team

Phu My Fertilizer becomes main sponsor of Vietnam Women’s Volleyball Team

PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo – Phu My) has become the main sponsor of the Vietnam Women’s Volleyball Team, the firm announced in a Wednesday release.

Companies - Thu, May 8, 2025 | 4:15 pm GMT+7

AES earns $12 mln in Q1 pre-tax income from coal-fired power plant in Vietnam

AES earns $12 mln in Q1 pre-tax income from coal-fired power plant in Vietnam

U.S.-based energy giant AES Corporation earned a pre-tax income of $12 million from the Mong Duong 2 coal-fired power plant in Vietnam’s northern province of Quang Ninh in the first quarter of this year.

Companies - Thu, May 8, 2025 | 3:33 pm GMT+7

Vietnam insurer Pjico stock plummets amid insurance sector gains

Vietnam insurer Pjico stock plummets amid insurance sector gains

Petrolimex Insurance Corporation (Pjico) saw its stock (HoSE: PGI) tumble nearly 6% on Wednesday, which contrasts with the broader insurance sector which posted solid gains of 1.77%, second only to telecommunications (2.54%).

Companies - Thu, May 8, 2025 | 3:21 pm GMT+7

Vietnam tech unicorn VNG reports loss for 7th straight quarter

Vietnam tech unicorn VNG reports loss for 7th straight quarter

VNG Corporation, Vietnam’s first tech unicorn, recorded a post-tax loss of VND15 billion ($577,723) in Q1, marking the seventh consecutive quarterly loss, according to its Snapshot Q1/2025.

Companies - Thu, May 8, 2025 | 12:01 pm GMT+7

Vietnam's government bond auctions raise $1.62 bln in April

Vietnam's government bond auctions raise $1.62 bln in April

The Hanoi Stock Exchange (HNX) held 20 government bond auctions on the primary market in April, raising over VND42.42 trillion ($1.62 billion), the bourse reported.

Finance - Thu, May 8, 2025 | 8:32 am GMT+7

Malaysia’s investment growth in 2025 faces challenges

Malaysia’s investment growth in 2025 faces challenges

In the context of global trade uncertainty, Malaysia may not achieve a hat-trick in approved investments this year after two straight years of record-high numbers.

Southeast Asia - Wed, May 7, 2025 | 10:59 pm GMT+7

Thaco seeks to remove obstacles to hotel, bauxite projects in Vietnam's Central Highlands

Thaco seeks to remove obstacles to hotel, bauxite projects in Vietnam's Central Highlands

Thaco expects the Central Highlands province of Lam Dong to help the multi-industry corporation remove barriers to its hotel, bauxite, and aluminum projects in Da Lat town, said a company representative.

Industries - Wed, May 7, 2025 | 10:55 pm GMT+7

Q1 proves tough for Vietnam's oil and gas giants

Q1 proves tough for Vietnam's oil and gas giants

Profits for major Vietnamese oil companies dropped significantly in Q1, as global oil prices plunged, driven by U.S. tax policy shifts and the ongoing Russia-Ukraine war.

Companies - Wed, May 7, 2025 | 5:06 pm GMT+7

How much is your identity worth?

How much is your identity worth?

With 87% of Vietnamese adults having bank accounts and approximately 95% of transactions conducted via online channels, how banks can protect their customers’ personal data has become important more than ever, writes Phillip Wright, chief operating officer at HSBC Vietnam.

Consulting - Wed, May 7, 2025 | 4:01 pm GMT+7

Foxconn plans to expand product portfolio at $200 mln plant in central Vietnam

Foxconn plans to expand product portfolio at $200 mln plant in central Vietnam

Fu Wing Interconnect Technology (Nghe An) Co., Ltd., a subsidiary of Taiwan-based electronics giant Foxconn, plans to expand the range of products at its $200 million factory in Vietnam’s central province of Nghe An.

Industries - Wed, May 7, 2025 | 3:35 pm GMT+7

Sumitomo okayed to build 4th industrial park in Vietnam

Sumitomo okayed to build 4th industrial park in Vietnam

With an industrial park to develop in the central province of Thanh Hoa, Japan's Sumitomo will expand its industrial real estate portfolio in Vietnam to four projects amid rising FDI inflows.

Industrial real estate - Wed, May 7, 2025 | 2:16 pm GMT+7

Vietnam upholds 8% GDP growth target despite US tariff turmoil

Vietnam upholds 8% GDP growth target despite US tariff turmoil

The Vietnamese Government is persistent with its 8% growth goal though disadvantages outweigh advantages, with a focus on solutions to respond to U.S. reciprocal tariffs, PM Pham Minh Chinh told a cabinet meeting on Tuesday.

Economy - Wed, May 7, 2025 | 12:42 pm GMT+7

Vietnam's sugar major Quang Ngai Sugar JSC posts lowest Q1 profit in 2 years

Vietnam's sugar major Quang Ngai Sugar JSC posts lowest Q1 profit in 2 years

Quang Ngai Sugar JSC, owner of famous soy milk brand Fami in Vietnam, reported its weakest Q1 profit in two years as its sugar business struggled under pressure from smuggled and imported sugar, though the soy milk segment continued to support revenue.

Companies - Wed, May 7, 2025 | 11:14 am GMT+7