Construction giant Vinaconex plans rights issue, capital base hike in 2024
Vinaconex, among Vietnam’s top construction companies, plans to issue nearly 120 million shares to existing shareholders at VND10,500 ($0.41) apiece this year.
The proceeds from the offering will be earmarked for paying off debts due in 2024 and 2025, its general director Nguyen Xuan Dong said at the firm’s AGM on Wednesday.
This year, Vinaconex, listed on the Ho Chi Minh Stock Exchange as VCG, is gunning for VND15 trillion ($590 million) in consolidated revenue and VND950 billion ($37.3 million) in net profit, up 15% and 140% year-on-year, respectively.
The firm also plans to hike its charter capital to VND7.18 trillion ($282.6 million) from the current VND5.34 trillion ($210.27 million). To implement the plan, it will issue 64.1 million shares, or 12% of its stake, for a 2023 dividend payout.
Last year, VCG reaped VND396 billion ($15.5 million) in net profit, down 57% year-on-year and equivalent to 46% of the year’s target. It earned VND12.96 trillion ($510.03 million) in revenue, up 35% year-on-year and reaching 79% of the plan.
In response to shareholders’ inquiries regarding the Cat Ba-Amatina tourism project in the northern city of Hai Phong, Vinaconex’s chairman Dao Ngoc Thanh stated that the project has completed its legal procedures and basic amenities. It is seeking parners for sale this year and may sell part of the project, subject to the appropriate price.
VCG will continue to inject capital into the project’s owner Vinaconex Tourism Development and Investment Joint Stock Company, or Vinaconex-ITC (HoSE: VCR), Thanh added. He clarified that Vinaconex’s withdrawal of VND2.2 trillion ($86.5 million) from its cooperation with VCR is intended to cover bond yields, rather than to exit the Cat Ba project.
In reference to VCG’s capability to achieve its 2024 objectives, Thanh stated that the firm would try its best, particularly in increasing its charter capital, to undertake significant contracts. For example, Vinaconex has signed a deal with China Pacific Construction Group for the construction appraisal of the Tu Lien bridge and metro line No.5 in Hanoi, totaling $4 billion. Additionally, the company aims to enhance the skills of its staff to participate in bidding for a high-speed railway project in the coming years.
Regarding the Dong Anh Industrial Park, since Vinaconex received in-principle approval for the project from the government nearly two months ago, no details are available for disclosure at this time.
Speaking of the Green Diamond apartment project at 93 Lang Ha street, Hanoi, general director Nguyen Xuan Dong said that the 342-apartment project has basically had its sales work completed.
Among them, the first 86 apartments are awaiting the issuance of red books, which serve as housing ownership certificates. This year, the project is expected to generate VND906 billion ($35.6 million) in revenue and VND275 billion ($10.85 million) in pre-tax profit, compared to the corresponding figures of VND1.73 trillion ($68.2 million) and VND447 billion in 2023.
Dong affirmed that the company will reach its 2024 targets, with a projected profit of VND400 billion ($15.74 million) in Q1. He added that Vinaconex aims to achieve a profit margin of at least 2% this year, ensuring no losses.
Regarding its engagement in the Long Thanh airport project in the southern province of Dong Nai, standing deputy general director Duong Van Mau said that Vinaconex is in charge of two bidding packages, making up 11% of the project’s capital. It has properly prepared and planned material inputs required for construction despite the closure of some stone quarries and material price surges.
- Read More
Use social media influencers in targeted manner for e-commerce success: Vietnam execs
Vietnamese companies should use new generation influencers in a targeted manner, prioritizing specific market segments, standardizing quality and focusing on strong product categories to achieve e-commerce success, says Nguyen Ngoc Luan, CEO of Meet More Coffee.
Companies - Fri, November 22, 2024 | 4:26 pm GMT+7
VinFast’s parent, PV Power partner to speed up charging station expansion
Vietnamese private conglomerate Vingroup, the parent firm of electric vehicle manufacturer VinFast, and state-controlled PV Power have entered an agreement to develop charging stations across the country and promote rooftop solar installations.
Companies - Fri, November 22, 2024 | 4:11 pm GMT+7
Petrovietnam, Petronas to boost renewable energy cooperation
Petrovietnam and Petronas, two state-owned oil & gas giants of Vietnam and Malaysia, will further cooperate in renewable energy, including exchange of information, knowledge, and experiences.
Energy - Fri, November 22, 2024 | 2:59 pm GMT+7
FTSE Vietnam ETF may heavily buy Vinhomes, sell Vingroup in upcoming reshuffle: broker
FTSE Vietnam ETF is forecast to strongly buy in several Vietnamese heavyweights such as Vinhomes, Hoa Phat, and Vietcombank in its upcoming portfolio reshuffle.
Finance - Fri, November 22, 2024 | 2:45 pm GMT+7
$681 mln central Vietnam urban area project eyed by Sun Group gets authorities' nod
A VND17.3 trillion ($681 million) urban area project that is drawing the interest of major realty developer Sun Group has received an in-principle approval from Khanh Hoa province's administration.
Real Estate - Fri, November 22, 2024 | 1:53 pm GMT+7
Vietnam foreign ministry dismisses allegations of tightening visa rules for foreigners
Allegations of Vietnam tightening visa policies and control over foreigners are "baseless", Foreign Ministry spokeswoman Pham Thu Hang said Thursday.
Politics - Fri, November 22, 2024 | 11:29 am GMT+7
Thailand-invested food giant CP fined $31,000 for environmental violations
Vietnam’s southern province of Dong Nai has issued a fine of VND790 million ($31,080) to Thailand-invested C.P. Vietnam Corporation for violating environmental regulations.
Companies - Fri, November 22, 2024 | 10:48 am GMT+7
Vietnamese billionaire’s daughter spends $25 mln on Masan share purchases
Nguyen Yen Linh, the daughter of chairman Nguyen Dang Quang of consumer goods giant Masan Group (HoSE: MSN), has purchased nearly 8.5 million MSN shares over the past three weeks, meeting 85% of her target.
Finance - Fri, November 22, 2024 | 10:27 am GMT+7
PYN Elite manager upbeat about Vietnam’s economy, stock market despite Trump uncertainty
The Vietnamese economy will still fare well, and the local stock market will remain appealing despite the recent pullback following Donald Trump’s election win for a second term, said Petri Deryng, portfolio manager of Finland-based the PYN Elite fund.
Finance - Fri, November 22, 2024 | 8:25 am GMT+7
Central Vietnam province plans to build $2.4 bln LNG power plant from 2031
The 4,800-MW Chan May LNG power plant, with an investment of $2.4 billion, can be deployed in 2031-2035, according to Thua Thien Hue authorities.
Energy - Thu, November 21, 2024 | 10:41 pm GMT+7
Indonesia, France step up cooperation in economy, defence
Indonesian President Prabowo Subianto discussed economic and defence cooperation during a bilateral meeting on Tuesday with French President Emmanuel Macron on the sidelines of the G20 Summit in Rio de Janeiro, Brazil, Antara reported.
Southeast Asia - Thu, November 21, 2024 | 10:25 pm GMT+7
Thai economy to maintain upward momentum in 2025
The National Economic and Social Development Council of Thailand (NESDC) expects the Thai economy to sustain its upward momentum in 2025 with a growth of 2.3-3.3% despite growing risks.
Southeast Asia - Thu, November 21, 2024 | 10:24 pm GMT+7
Former parliament chairman Vuong Dinh Hue warned for violations
The Politburo, Vietnam's supreme decision making body, on Wednesday issued warnings to Vuong Dinh Hue, former Chairman of the National Assembly, and Nguyen Van The, former Minister of Transport, for violations while on duties.
Politics - Thu, November 21, 2024 | 10:10 pm GMT+7
Sumitomo insists on building LNG power plant in central Vietnam
Japanese trading house Sumitomo has been pushing for a liquefied natural gas (LNG)-fed power plant investment in Vietnam’s central province of Khanh Hoa.
Energy - Thu, November 21, 2024 | 8:53 pm GMT+7
Vietnam’s Vinhomes fulfils 67% of record buyback plan
Vinhomes, the housing development arm of conglomerate Vingroup, has purchased back 246.98 million shares, meeting 66.75% of the plan and accounting for 5.7% of the outstanding volume.
Finance - Thu, November 21, 2024 | 8:43 pm GMT+7
Vietnam high-speed railway should run beyond Hanoi, HCMC on either side: lawmakers
Vietnam’s mega North-South high-speed railway project should be redesigned and extended beyond Hanoi and Ho Chi Minh City as currently planned, several lawmakers have suggested.
Infrastructure - Thu, November 21, 2024 | 6:11 pm GMT+7