Bamboo Capital subsidiary Tracodi aims for 13% revenue growth in 2023

Tracodi, a subsidiary of Bamboo Capital Group, has set a target of raking in VND3.3 trillion ($141 million) in consolidated net revenue in 2023, a year-on-year increase of 13%, said the company’s leadership.

The firm's 2023 annual general meeting of shareholders in Ho Chi Minh City on Wednesday approved a plan to earn net profit of over VND267 billion ($13.39 million) this year, down 20% year-on-year.

The board of directors said in 2023, Tracodi would complete the unfinished works of 2022, including Malibu Hoi An and Hoian D'or real estate projects in the central province of Quang Nam, King Crown Infinity hi-end apartment project in Ho Chi Minh City, and Krong Pa 2 solar power project in the Central Highlands province of Gia Lai, among others.

In Q1/2023, Tracodi, listed on the Ho Chi Minh Stock Exchange (HoSE) as TDC, recorded revenue of more than VND300 billion ($12.8 million) and net profit of VND60 billion ($2.56 million), equivalent to 10% and 25% of the set targets and down nearly 43% and 46% year-on-year, respectively.

In the taxi service segment, Tracodi said the reinvestment in Vinataxi aims to increase its ownership ratio to 51%. According to the plan, it will invest in 50 vehicles to raise Vinataxi’s fleet to 300 by the end of this year.

Vinataxi strives for VND50 billion ($2.13 million) in revenue and VND8 billion ($341,195) in profit in 2023.

After acquiring Vinataxi’s stake from a Singaporean partner, Tracodi has restructured its personnel apparatus and business organization. Right in 2022, the taxi firm reported a profit of VND5 billion ($213,200) from its losses in 2020-2021.

Tracodi shareholders also approved a plan to pay 2021 and 2022 dividends by shares at a total rate of 15%, including 7% for 2021 and 8% for 2022. It is expected that more than 36.6 million shares will be issued to pay dividends. Besides, the company plans to issue 1.6 million shares under the employee stock option program (ESOP).

They also nodded another plan to issue more than 282.6 million shares to existing shareholders at a ratio of 1:1 in Q4/2023 at a price of VND10,000 ($4.3) per share, as compared to the book value of VND14,808 per share in the company’s 2022 consolidated financial statements.

If the above issuances are successful, Tracodi’s charter capital will increase from VND2.44 trillion ($104.23 million) on January 1, 2023 to VND5.65 trillion ($241 million), or 2.3 times higher.

At the meeting, the board announced a resolution to approve the resignation of vice chairpersons Bui Thanh Lam and Le Thi Mai Loan, and independent member Morishima Kenji; and approved the election of three new board members, namely Nguyen Van Bac, Le Thanh Tung and Duong Anh Van, who are leaders at companies under Bamboo Capital Group.

TDC hit its ceiling price of VND11,100 on Wednesday.