Construction giant Vinaconex seeks 70% rise in 2023 net revenue

Construction and real estate corporation Vinaconex has targeted VND16.3 trillion ($695 million) in consolidated net revenue this year, a rise of 70% from 2022.

At its annual general shareholder meeting on Friday, the firm, listed on the Ho Chi Minh Stock Exchange as VCG, approved a plan to earn an after-tax profit of VND860 billion ($36.68 million) in 2023, down 8% year-on-year.

Regarding investment activities, Vinaconex aims to complete sales and hand over apartments at the Green Diamond apartment and office complex at 93 Lang Ha Street, Hanoi; and the urban residential area project in Mong Cai town, Quang Ninh province.

It will put on sale the Hoa Binh Boulevard urban area project in Mong Cai town, and the Cai Gia Cat Ba Amatina new urban area project in Cat Ba island district, Hai Phong city.

The company will also complete procedures for implementing other projects like the Thien An new urban area and a resort urban project in Tuy Hoa town, the south-central province of Phu Yen.

Vinaconex also adopted a plan to pay 2022 dividends at a rate of 10% by issuing nearly 48.6 million shares. Once the issuance is completed in 2023, its charter capital will increase from nearly VND4.86 trillion ($207.25 million) to nearly VND 5.35 trillion ($228 million). This year, it aims to pay a dividend rate of 10%.

"The company will do everything to bring profits to shareholders. All dividends will be distributed to shareholders as the business results in the first quarter of 2023 were better than the same period last year, with projects using public investment starting to bear fruit," said board chairman Dao Ngoc Thanh.

Regarding the bond issue, he said the company is trying to arrange resources to pay the bond debts ahead of maturity in 2023.

Vinaconex recorded an after-tax profit of VND1.05 trillion ($44.74 million) in 2022, up 101% year-on-year, fulfilling 75% of its target.

Its consolidated net revenue was VND8.63 trillion ($368 million), up 50%, or 56.3% of the target. Of the total, construction and installation activities accounted for nearly 70% with nearly VND6 trillion ($255.9 million), followed by industrial production with VND949 billion ($40.47 million), real estate business VND609 billion ($25.97 million), and education VND221 billion ($9.42 million).

VCG closed the Friday session at VND19,500 ($0.83), a 2% drop from Thursday.