Bamboo Capital’s energy arm begins trading shares on UPCoM

BCG Energy JSC, a subsidiary of Vietnam’s private conglomerate Bamboo Capital Group, began trading 730 million shares coded BGE on the Unlisted Public Companies Market (UPCoM) on Wednesday.

Its reference price on the first trading day was set at VND15,600 ($0.62) per share, with a fluctuation range of +/- 40%.

With 730 million registered shares, the company’s capitalization stands at VND11,388 billion ($449.4 million).

Speaking at the launching ceremony, BCG Energy chairman Ng Wee Siong Leonard said this is an important milestone in the firm’s journey, not only symbolizing development but also representing a commitment to helping to shape the future of the renewable energy market in Vietnam.

As a public company, BCG Energy is committed to maintaining the highest standards on corporate governance and transparency. The commitment will ensure that the company operates with integrity, maintain the trust of shareholders and create long-term values for all stakeholders, noted the chairman.

BCG Energy is a pivotal energy arm of Bamboo Capital Group, listed on the Ho Chi Minh Stock Exchange (HoSE) as BCG.

Established in 2017, it currently has a charter capital of VND7.3 trillion ($288 million) and total assets of nearly VND20 trillion ($792.86 million), including equity of nearly VND10 trillion ($394.6 million).

In recent years, BCG Energy has continuously recorded impressive business results. Its revenue surged 40% from VND760 billion ($30 million) in 2021 to VND1,064 billion in 2022. The figure last year hit VND1,125 billion ($44.42 million), up 5.8% year-on-year.

In the first six months of 2024, BCG Energy’s consolidated net revenue reached VND689.8 billion ($27.3 million), an increase of 22% over the same period. Its post-tax profit was VND290.7 billion ($11.5 million), a 33-fold year-on-year increase.

BCG Energy said its impressive post-tax profit was derived from reduction in financial costs, especially interest expenses. BCG Energy's growth motivation also came from its solar power system with total capacity of 600 MW, driving it to the Top 3 in Vietnam.

BCG Energy's capital structure has also improved significantly and gradually stabilized over the years. Its debt-to-equity ratio fell from 1.9 at end-2022 to 0.99 as of mid-2024. Meanwhile, the loan-to-equity ratio dropped from 1.25 at end-2022 to 0.64 by June 30, 2024.

The year-on-year improvement in the loan-to-equity ratio shows that BCG Energy is maintaining financial leverage at a safe level, minimizing risks from the macro economy.

BCG Energy's renewable energy segment has become an important pillar bringing the largest source of revenue to Bamboo Capital Group. Specifically, Bamboo Capital Group's accumulated revenue in H1 reached VND2.1 trillion ($83.25 million), an increase of 15.7% over the same period last year. Of which, BCG Energy's renewable energy segment contributed VND698.8 billion or 32.8%.

BCG Energy currently owns a portfolio of nearly 1 GW approved under the National Power Development Plan VIII (PDP VIII) to be carried out until 2030.

Notably, a series of large-scale wind power projects, including Dong Thanh 1 wind power (80 MW) and Dong Thanh 2 (120 MW) in the Mekong Delta province of Tra Vinh, and Khai Long 1 (100 MW) in the southernmost province of Ca Mau, will be deployed by BCG Energy this year.

Once put into operation in 2025, these projects will increase the company’s total power generation capacity by about 53%, making it the leading renewable energy developer in Vietnam.

Another highlight in BCG Energy's business activities, the company officially entered the field of waste-to-power development. On July 20, Bamboo Capital Group and BCG Energy held a groundbreaking ceremony for the construction of the Tam Sinh Nghia waste-to-power plant in Thai My commune, Cu Chi district, Ho Chi Minh City.

The first phase of the plant will be implemented from 2024 to 2025 with a total investment of VND6.4 trillion ($252.7 million), capable of burning 2,000-2,600 tons of waste and generating 60 MW of electricity per day.

About 365 million kWh of electricity is expected to be supplied to the grid per year, meeting the needs of about 100,000 households, while helping to reduce emissions by about 257,000 tons of CO2 per year.

The second phase is expected to be carried out from 2026-2027, with the waste incineration capacity increasing to 6,000 tons per day and a daily electricity generation capacity of up to 130 MW, becoming the largest waste power plant in the world.

Its third phase is expected to be deployed from 2027 to 2029, with 8,600 tons and 200 MW, respectively.

Along with the construction of the Tam Sinh Nghia waste-to-power power plant in HCMC, BCG Energy will soon build others in the southern provinces of Long An and Kien Giang.

The engagement in the waste-to-power field is expected to expand revenue for BCG Energy, while contributing to the clean energy transition process in Vietnam.

To meet the need to develop more large-scale energy projects, in addition to mobilizing capital from banks and financial institutions, domestic and foreign partners, the trading of shares on the UPCoM will give BCG Energy more conditions to raise funds for upcoming energy projects.

With an impressive leap in profit in the first six months of 2024, a safe and stable financial leverage ratio, and the recent issuance of many policies supporting the renewable energy sector, BGE will likely be among the promising stocks leading the energy group in the second half of 2024.