Deo Ca eyes 11% profit hike, plans $4.7 bln for expressway projects

Deo Ca Traffic Infrastructure Investment JSC, a subsidiary of “tunnel king” Deo Ca Group, is targeting a 17% increase in revenue and an 11% jump in net profit for 2014, according to its 2024 AGM held on Friday.

Last year, the company, listed on the Ho Chi Minh Stock Exchange as HHV, earned VND2.68 trillion ($105.54 million) in consolidated revenue, up 28% year-on-year and exceeding the year’s plan by 8%. Its net profit surged nearly 22% to VND364 billion ($25.15 million), beating the target by 7%.

In 2023, HHV brought in VND830 billion ($32.61 million) from a rights issue, raising its charter capital to VND4.11 trillion ($161.73 million). As of end-2023, its total assets stood at VND36.78 trillion ($1.45 billion).

Regarding transport construction activities, HHV and Deo Ca Group plan to invest in 400 kilometers of expressways at a total cost of VND120 trillion ($4.72 billion) in 2024-2030.

The targeted projects include the Dong Dang-Tra Linh Expressway in the northern province of Cao Bang, the Huu Nghi-Chi Lang road in the northern province of Lang Son, the Tan Phu-Bao Loc road in the Central Highlands province of Lam Dong, the Ho Chi Minh City-Chon Thanh route, and a section of Belt Road No.4 in the southern province of Binh Duong.

The first-phase of the Dong Dang-Tra Linh Expressway, costing VND14.3 trillion ($561.8 million), started on January 1, and the VND11 trillion ($432.2 million) Huu Nghi-Chi Lang project was kicked off on April 21. HHV is involved in the two projects as either the direct owner or under business cooperation contracts.

It is also looking for public-invested and public-private partnership projects with a total bidding value of VND200 trillion ($7.86 billion), including VND5.7 trillion ($224 million) for the two aforesaid projects.

Additionally, the builder will prepare resources for railway projects totaling VND60 trillion ($2.36 billion) in the 2024-2030 period.

HHV is targeting VND600 billion ($23.58 million) in annual income from the management and operation of public-invested projects in 2024-2030.

Since 2023, the company has won bids for many big projects, including the Quang Ngai-Hoai Nhon Expressway with a construction value of VND14.4 trillion ($565.82 million), the expansion of Prenn pass (Lam Dong province) with a building cost of VND500 billion ($19.65 million), the Cam Lam-Vinh Hao Expressway in the central region, and some local coastal roads.

As a result, it earned VND1.04 trillion ($41.14 million) from construction in 2023, rising by VND517 billion ($20.31 million) from 2022.

Moreover, it is currently in charge of operating, maintaining, and operating over 410 km of expressways and highways, over 30 km of road tunnels, and 18 build-operate-transfer toll booths. It recorded VND1.57 trillion ($61.81 million) from toll collection in 2023, up 6% year-on-year.

In the first quarter of this year, HHV posted VND690 billion ($27.11 million) in revenue and VND114 billion ($4.48 million) in net profit, up 28% and 37% year-on-year, respectively.