Construction firm Lizen to focus on transport infrastructure, suspend some renewables projects

With real estate market remaining sluggish and renewable energy policies yet to be finalized, construction firm Lizen has decided to focus on transport infrastructure and electrical engineering.

At the firm’s 2024 AGM held Saturday, Lizen’s leaders said the firm aims at earning VND131 billion ($5.17 million) in after-tax profit this year, a year-on-year increase of 30%.

CEO Cao Ngoc Phuong said 2023 was a year of difficulties for the economy, but public investment had greatly supported economic growth, job creation, and sales in many industries and fields.

During the year, Lizen focused mainly on public investment and did not prioritize public-private partnership (PPP) projects. The company won bids or was assigned to construct many bidding packages including the Vung Ang-Bung Expressway, Van Phong-Nha Trang Expressway, the first phase of Bien Hoa-Vung Tau Expressway and a project cluster in the northern province of Hung Yen.

Thanks to this focus, the firm’s revenue doubled to over VND2 trillion ($78.91 million) last year, with VND1.78 trillion coming from the construction segment.

The real estate segment contributed VND81 billion ($3.2 million) and other segments a total of VND141 billion ($5.56 million).

Despite the increase in revenue, the company’s net profit halved to VND103 billion ($4.06 million), Phuong noted, attributing it to capital transfer activities at member companies in 2022 and making provision for bad debts.

Based on 2023 business results, the board of directors presented a plan to pay cash dividends of 5% and increase it to 7% this year.

In its future development orientation, the company will develop three areas – transport infrastructure, real estate, and renewable energy – with the dual goal of making its investments effective and creating jobs.

However, given ongoing real estate difficulties and uncertain energy policies, the company will mainly focus on infrastructure development.

In the renewable energy segment, Lizen will stop investing in the second phase of the 25 MWp Chu Ngoc solar power plant, transferring the investment capital of VND125 billion ($4.93 million) to the Huu Nghi Border Gate-Chi Lang Expressway project. It will also consider suspending wind power projects such as Licogi 16 Quang Tri and Licogi Huong Hoa 2.

In the real estate segment, the company is completing procedures for the 77-hectare Long Tan project in Nhon Trach district, Dong Nai province. Its Nam Phuong City project in Bao Loc district, Lam Dong province has finished the construction of houses on a 13.3-hectare area as well as compensation and site clearance for 3.4 hectares.

Meanwhile, the Hiep Thanh Residential Area project in Ho Chi Minh City’s District 12 has completed issuing land use rights certificates to all customers.

Lizen, listed on HoSE as LCG, closed Friday at VND11,500 ($0.45) per share.