Industrial park developer Idico targets 22% profit hike, 40% cash dividend

Leading industrial park developer Idico Corporation has targeted revenues and pre-tax profit of VND8.46 trillion ($334 million) and VND2.5 trillion ($98.7 million) this year, up 13% and 22% year-on-year, respectively.

The firm, listed on the Ho Chi Minh Stock Exchange as IDC, also aims at a 40% cash dividend, doing so for the third consecutive year.

The company will maintain a dividend payout of 30-40% over the next three years, either by cash or stock, in alignment with a roadmap to raise its charter capital to VND4.5-5 trillion ($117.5-197.3 million), chairwoman Nguyen Thi Nhu Mai said at the company’s 2024 AGM Friday.

Mai also said that Idico targeted leasing 120-150 hectares of industrial land and generate VND3-4 trillion ($118.3-157.8 million) in operating cash flows a year.

Idico general director Dang Chinh Trung reported that as of end-2023, the company had 580 ha of unleased industrial park land, which may take three to four years to be fully occupied.

He said the company was developing a host of urban real estate projects with a total area of 70 ha, mostly situated in the southern provinces of Dong Nai, Long An, and Ba Ria-Vung Tau, the Mekong Delta city of Can Tho, and the northern province of Ha Nam.

Trung revealed that a 36-ha project, which houses an Aeon mall in Long An province’s Tan An town, was sold in the first quarter of this year.

On the progress of a 47-ha project at the Huu Thanh Industrial Park in Long An province, payment of financial compensation was 90% complete and all financial obligations to the state have been fulfilled, he said. The firm will kick off infrastructure development next year, he added.

Idico also has 3.47 hectares of land available for the construction of high-rise apartment complexes in Ba Ria-Vung Tau province, and another parcel of land in Chau Giang ward, Ha Nam province. In its real estate development activities, IDC prioritized service to society and meeting atual demand, Trung stressed.

Deputy general director Phan Van Chinh said IDC has set a goal of leasing 145 ha of industrial park area and 50,000 square meters of warehouses and factories this year. The firm will seek in-principal approval this year for developing the 470-ha Tan Phuoc industrial park in the Mekong Delta province of Tien Giang, he added.

Deputy general director Phan Van Chinh said that Idico earned revenues and pre-tax profit of VND7.24 trillion ($285.5 million) and VND2.06 trillion ($81.1 million) in 2023, down 3% and 21% year-over-year, respectively. The firm’s net profit declined 19% year-over-year to VND1.66 trillion ($65.3 million).

This year, the firm targets leasing 145 ha of industrial park area and 50,000 square meters of warehouses and factories. It will also seek in-principal approval this year for developing the 470-ha Tan Phuoc industrial park in the Mekong Delta province of Tien Giang, he added.

Chinh said further that the firm was completing legal procedures for industrial park projects in Hai Phong city, Ninh Binh province and other localities towards creating a land fund of over 2,000 ha for future developments.