Core segments keep Bamboo Capital on track to achieve annual targets

The Bamboo Capital Group (BCG) expects to achieve its revenue and profit targets this year as it obtained 30% and 40% of the two, respectively, by the end of the second quarter.

BCG Deputy CEO Pham Minh Tuan said this at an August 9 investors’ meeting of the Vietnamese multi-business group.

He said the group’s real estate arm, BCG Land, was implementing its projects as scheduled.

The Malibu Hoi An project in the central province of Quang Nam with 96 villas and 675 resort apartments has completed work on swimming pools and surrounding landscape, including planting trees. BCG Land expects to hand over the project's condotel products to buyers from Q3/2022, while the villas are scheduled for delivery from Q4/2022.

As for the Hoian D'or project in the same province, shophouse deliveries started at the end of this July, Tuan said, adding that work is also underway on surrounding landscape and a hotel.

In Ho Chi Minh City where BCG is based, the group has handed over the remaining 10 villas in phase one of the King Crown Village project, and opened for sale 200 apartments in the King Crown Infinity project in Q2/2022. Currently, the foundation and ground floor of the King Crown Infinity project has been completed, and work on the basements is underway.

In Binh Dinh province, the Casa Marina Premium project, which will have 160 villas on a mountain overlooking the sea, has completed the construction of its sales gallery and check-in points for visitors.

The group is fulfilling legal procedures for the Cat Trinh Industrial Park project, also in Binh Dinh, to kick off construction next year and start commercial operations in 2024.

In energy development, five wind power projects - Khai Long, Tra Vinh, Soc Trang, and Ca Mau 1 and 2 - are also under construction. The five projects have not been part of Vietnam's Power Development Plan VIII, the country's latest.

Since the government is yet to determine the electricity buying prices for these projects, BCG is mainly relying on its own equity or capital mobilized from engineering, procurement and construction (EPC) contractors, Tuan said.

BCG is also looking for other strategic investors in energy development, he said. Last year, it formed a partnership with Singapore's Sembcorp Industries to develop wind power projects in Vietnam.

BCG Energy, the group's energy unit, expects to complete 150 megawatts of rooftop solar installations this year. It had earlier signed a contract with Singapore’s SP Group to jointly install 500 MW of rooftop solar power panels by 2025.

The unit currently has 550 MW of wind power in the pipeline in the Mekong Delta. Of this, the first 180 MW is expected to begin generation and earn revenues in 2023, and another 370 MW in 2024.

BCG Land, the group’s real estate subsidiary, expects to make an IPO in the current quarter and be listed in the fourth quarter.

In Q2/2022, following its corporate restructuring, BCG Group's revenue and profit became less dependent on subsidiary Tracodi's construction and installation activities. Instead, new activities are gradually becoming more efficient and recording more positive contributions.

Specifically, the renewable energy segment recorded higher profit growth with output reduction in 2022.

Real estate development will record profits in Q3 and Q4/2022, Tuan said.

In the first half of 2022, BCG recorded revenue and after-tax profit of VND2,134 billion ($91.21 million) and VND877 billion ($37.48 million), up 47.4% and 81.5% year-on-year, respectively.

Revenue during the period came mainly from three core activities: construction and infrastructure with VND737.6 billion ($31.52 million); real estate with VND543.4 billion; and renewable energy with VND584.7 billion.

Gross profit margin and net profit in H1/2022 rose 38% year-on-year and 41.1% over the whole of 2021.

Power output in the renewable energy segment stabilized and grew 16.5% year-on-year, with seven rooftop projects with a total designed capacity of 8,716 kWp starting operations in H1/2022.

As of June 30, 2022, the group’s total assets and equity were valued at VND44,361 billion ($1.89 billion) and VND13,701 billion ($585.58 million), up 17.7% and 64.1% compared to the end of 2021, respectively.

BCG has expanded its equity by increasing its capital and mobilizing capital from strategic partners. This has helped reduce the total debt to equity ratio from 7.1 times in Q4/2020 to 2.2 times at the end of Q2/2022, closer to the industry average.

Capital mobilized through the stock market has been invested in profitable areas to deliver benefits to shareholders. The group has set an ambitious target of entering the VN30 basket, which represents blue-chips in the market, Tuan said.