Bamboo Capital subsidiary Tracodi earns $4.8 mln in Q1 profit

Transport and Industry Development Investment JSC (Tracodi), a subsidiary of Bamboo Capital Group, reported a profit after tax of VND111 billion ($4.8 million) in the first quarter of the year, up 60.7% year-on-year.

The company, listed on the Ho Chi Minh Stock Exchange (HoSE: TCD), achieved $22.7 million in revenue in the period, fulfilling 11.8% of the year’s target.

Tracodi’s expenses in terms of sales, administration, and finance were almost the same as last year. Profit mainly came from construction and installation activities as a contractor and its joint ventures.

TCD expected a revenue of $192 million and profit after tax of $22 million in 2022, up 42.39% and 51.19% from the 2021 result, respectively.

Cash and cash equivalents reached $7.58 million at the end of Q1, while short-term financial investments were $42.5 million. Short-term account receivables totaled $155.5 million, primarily from recently sold real estate projects. Inventory was $20.2 million.

Tracodi's equity had nearly doubled over the period, owing to the issuance of shares to existing shareholders in early 2022. Meanwhile, undistributed after-tax profit rose by $4.33 million to $19.4 million over the period. Earnings per share were VND599 (nearly $0.03).

The firm’s liabilities reached $207.3 million at the end of March, up 5% from the previous quarter. Debt-to-equity ratio was two, a fairly lower-leverage ratio among listed construction and installation companies.

TCD’s current ratio exceeds 1.28, indicating improved solvency with almost no financial risks. The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

The company timely handed over components of important projects like D'or Hoi An and King Crown Infinity to their investors. The developments aim to address the surging demand for high-end real estate products in the post-pandemic "new normal".

In 2022, Tracodi plans to continue promoting activities in two pillars, including construction and quarrying, especially with a strong shift to transport infrastructure to leverage the government's focus on public investment.

TCD's backlog value has reached almost $368.2 million, assuring its income for at least the next two years. It was awarded the $17.6 million Phan Thiet airport taxiway construction contract at the end of 2021, a public investment project on which it will focus in the first half of 2022.

At Tracodi’s recent general meeting, shareholders approved the merger and acquisition (M&A) plan of Bang Duong E&C JSC, which specializes in construction of transport infrastructure projects. They also voted for proceeding the M&A of a new quarry in Binh Thuan province, with a scale of 18.5 hectares, reserves of over 13 million cubic meters, and mining time to 2036. TCD planned to cooperate with Cat Trinh Industrial Area BCG JSC to implement the Cat Trinh Industrial Park project.

Regarding transport infrastructure, Tracodi planned to invest VND4,700 billion ($203 million) in the north-south axis in Soc Trang province. The company also proposed VND2,000 billion ($86.6 million) investment in the upgrade and expansion of provincial Road 934B that connects Soc Trang with Tran De seaport.

It intends to strengthen its financial capacity in Q2 by selling several of its investments to recover capital and fund its core business activities of construction and installation.

"Tracodi will record a surge in additional profits in the second quarter besides its core businesses," an executive of Tracodi told the shareholder meeting.