Construction materials maker Viglacera targets $43.6 mln profit in 2024

Viglacera, Vietnam's leading building material producer and industrial real estate developer, plans to earn consolidated revenue of VND13.35 trillion ($524.4 million) and a consolidated profit of VND1.11 trillion ($43.6 million) this year.

For its parent holding company, the respective figures are VND4.94 trillion ($194.05 million) and VND1.1 trillion. Its expected dividend payment rate in 2024 is 20%.

These targets were set by Viglacera, listed on the Ho Chi Minh Stock Exchange (HoSE) as VGC, at its 2024 AGM held on Wednesday.

According to the leadership, the firm’s export activities will focus on developing products with suitable criteria for sale and export to the European, American and Asian markets.

In 2024, the company will focus investment on repairs of a float glass production line at its subsidiary Viglacera Float Glass Company (VIFG) and development of products to meet the requirements of the solar battery manufacturing industry.

It will implement a series of in-depth investments to improve production capacity and quality of sanitary wares, shower faucets, and ceramic tiles; develop green material products, and promote the effectiveness of super white glass products, sintered stone, post-glass products.

For real estate investment, the company will accelerate the progress of site clearance compensation at ongoing industrial park and housing projects, while focusing on investing in synchronous technical infrastructure and services to attract domestic and foreign investors.

It will invest in additional utilities, improve environmental quality, and integrate smart technology in activities in industrial parks towards a greener future.

Viglacera will continue to look for new industrial park-urban-service-social housing and worker housing projects across the country; prioritize the implementation of the government's one million social housing apartment program, and participate in another program to build 50,000 housing units for workers in 2022-2030.

This year, Viglacera expects to complete investment in 2,180 social housing apartments, and invest in amenities such as trees, security, and services in social housing and worker housing areas to attract customers and create a good environment for residents.

In 2023, despite unprecedented challenges from world geo-political and economic fluctuations and the ailing domestic property market, Viglacera posted a consolidated pre-tax profit of VND1.6 trillion ($62.85 milion), surpassing the yearly plan by 32%.

In particular, the parent company showed its leading role with net revenue of VND5.34 trillion ($209.76 million) and a pre-tax profit of VND1.91 trillion ($75 million), reaching 146% of the yearly target and increasing VND201 billion compared to 2022.

The parent company’s return on total assets (ROA) and return on equity (ROE) hit 10.7% and 22.1%, respectively.

Last year, the total export turnover of the whole corporation reached $46.3 million, a year-on-year increase of 53%.

The AGM also approved a plan to pay cash dividends at a rate of 22.5%, higher than the target of 20% approved at the 2023 meeting.

On the stock market, VGC closed the Thursday session at VND55,000 ($2.16) per share.