Construction materials maker Viglacera to establish $25.5 mln subsidiary

Viglacera, Vietnam's leading producer of building materials, has decided to establish a subsidiary in Thai Nguyen province with total charter capital of VND600 billion ($25.5 million).

Viglacera will use VND306 billion ($12.99 million) of its own funds to contribute 51% of the charter capital in Viglacera Thai Nguyen JSC. The rest will be contributed by other shareholders.

VGC has set a revenue target of VND16 trillion ($681.12 million) for this year, up 10% year-on-year; and a pre-tax profit of VND1.3 trillion ($55.34 million), down 44% year-on-year.

However, the company is expected to maintain its dividend rate at 20%, the same as last year.

In the first quarter of 2023, VGC recorded net revenues of VND2.78 trillion ($118.2 million), down 28% year-on-year; and after-tax profit of VND151.5 billion ($6.45 million), down 80% year-on-year.

The company said revenue from its commercial housing business decreased sharply in the quarter compared to the same period last year. Its building materials sector also faced difficulties in sales, with both selling prices and sales volume declining.

As of March 31, 2023, the company's total assets had stood at VND23.32 trillion ($993.42 million), up 1.5% compared to the beginning of the year; and liabilities at VND14.09 trillion ($600.4 million), of which short-term debts accounted for 60%.

The corporation has plans to survey and develop several new industrial parks (IPs). By 2025, it will have increased the total number of IPs under the Viglacera brand to 20 with over 10 new IPs covering 2,000-3,000 hectares.

The main building materials that Viglacera produces include My Xuan porcelain, Binh Duong porcelain, ceramic tiles and bricks, and building glass (Viglacera Float Glass Binh Duong Company and Phu My Ultra Clear Float Glass Co., Ltd).

VGC shares closed Friday at VND42,600 ($1.81), up 0.95% over Thursday.