Industrial developer Becamex posts $59 mln in H1 profit

Becamex IDC, Vietnam's leading developer of large-scale industrial townships, recorded an after-tax profit of VND1,370 billion ($58.67 million) in the first half of 2022, up 40% year-on-year.

The corporation achieved a net revenue of VND3,358 billion ($143.8 million) during the period, an 8% rise compared to the same period last year, according to its consolidated financial statement.

In the second quarter, Becamex's net revenue and after-tax profit reached VND1,924 billion ($82.36 million) and VND978 billion ($41.87 million), up 14% and 90% year-on-year, respectively.

After six months, Becamex has fullfilled 34.7% of the year's revenue plan and 47.4% of the year's profit target.

As of June 30, 2022, the company's total assets reached VND49,815 billion ($2.13 billion), up nearly VND1,000 billion compared to the beginning of the year. On the balance sheet, Becamex's equity reached VND18,293 billion ($783 million), up 6.7%.

Financial debt hit VND15,846 billion, of which long-term debt accounted for 70.3%. Bank loans hit VND4,660 billion, while outstanding bonds exceeded VND10,611 billion.

In future, Vietnam-Singapore Industrial Park Joint Venture (VSIP), Becamex's largest joint venture with Sembcorp Industries, will make an IPO, Becamex leaders told the company's annual general meeting in late April.

Besides, in the next two years, Becamex plans to list shares of BW Industrial Development JSC (BWID), Becamex's second largest joint venture with global private equity firm Warburg Pincus, on a stock exchange.

Becamex IDC invested in VSIP at the original price of VND461 billion ($19.73 million), equivalent to a 49% stake. This investment has been re-evaluated according to the decision approving the corporate value to equitize the corporation at VND1,295.4 billion ($55.45 million). At the end of the second quarter in 2022, the investment value reached VND5,552 billion ($237.7 million).

Through VSIP, the company has cooperated with Sembcorp for more than 25 years, with a portfolio of eight industrial parks including VSIP Binh Duong I (500 hectares) and VSIP Binh Duong II (2,045 hectares); VSIP Bac Ninh (700 hectares); VSIP Hai Phong (1,600 hectares); VSIP Quang Ngai (915 hectares); VSIP Hai Duong (150 hectares); VSIP Nghe An (750 hectares); and Becamex VSIP Binh Dinh (1,374 hectares). The total area of these industrial parks exceeds 8,000 hectares.

In March 2022, VSIP held a groundbreaking ceremony for the third industrial park project in the southern province of Binh Duong with a scale of 1,000 hectares.

The VSIP parks have attracted a total $15 billion in foreign investment, serving about 880 tenants from 30 countries and territories.

Apart from VSIP, Becamex owns many other large industrial parks like My Phuoc Industrial Park 1-3 (1,287 hectares); Expanded Bau Bang and Bau Bang industrial parks (1,489 hectares); Thoi Hoa Industrial Park (153 hectares); and Cay Truong Industrial Park (500 hectares).

On the Ho Chi Minh City Stock Exchange, the BCM shares price hit VND75,400 ($3.23) a piece at the closing session on August 1.