Vinaconex, among Vietnam’s top construction companies, plans to issue nearly 120 million shares to existing shareholders at VND10,500 ($0.41) apiece this year.
The proceeds from the offering will be earmarked for paying off debts due in 2024 and 2025, its general director Nguyen Xuan Dong said at the firm’s AGM on Wednesday.
This year, Vinaconex, listed on the Ho Chi Minh Stock Exchange as VCG, is gunning for VND15 trillion ($590 million) in consolidated revenue and VND950 billion ($37.3 million) in net profit, up 15% and 140% year-on-year, respectively.
The firm also plans to hike its charter capital to VND7.18 trillion ($282.6 million) from the current VND5.34 trillion ($210.27 million). To implement the plan, it will issue 64.1 million shares, or 12% of its stake, for a 2023 dividend payout.
Last year, VCG reaped VND396 billion ($15.5 million) in net profit, down 57% year-on-year and equivalent to 46% of the year’s target. It earned VND12.96 trillion ($510.03 million) in revenue, up 35% year-on-year and reaching 79% of the plan.
In response to shareholders’ inquiries regarding the Cat Ba-Amatina tourism project in the northern city of Hai Phong, Vinaconex’s chairman Dao Ngoc Thanh stated that the project has completed its legal procedures and basic amenities. It is seeking parners for sale this year and may sell part of the project, subject to the appropriate price.
VCG will continue to inject capital into the project’s owner Vinaconex Tourism Development and Investment Joint Stock Company, or Vinaconex-ITC (HoSE: VCR), Thanh added. He clarified that Vinaconex’s withdrawal of VND2.2 trillion ($86.5 million) from its cooperation with VCR is intended to cover bond yields, rather than to exit the Cat Ba project.
In reference to VCG’s capability to achieve its 2024 objectives, Thanh stated that the firm would try its best, particularly in increasing its charter capital, to undertake significant contracts. For example, Vinaconex has signed a deal with China Pacific Construction Group for the construction appraisal of the Tu Lien bridge and metro line No.5 in Hanoi, totaling $4 billion. Additionally, the company aims to enhance the skills of its staff to participate in bidding for a high-speed railway project in the coming years.
Regarding the Dong Anh Industrial Park, since Vinaconex received in-principle approval for the project from the government nearly two months ago, no details are available for disclosure at this time.
Speaking of the Green Diamond apartment project at 93 Lang Ha street, Hanoi, general director Nguyen Xuan Dong said that the 342-apartment project has basically had its sales work completed.
Among them, the first 86 apartments are awaiting the issuance of red books, which serve as housing ownership certificates. This year, the project is expected to generate VND906 billion ($35.6 million) in revenue and VND275 billion ($10.85 million) in pre-tax profit, compared to the corresponding figures of VND1.73 trillion ($68.2 million) and VND447 billion in 2023.
Dong affirmed that the company will reach its 2024 targets, with a projected profit of VND400 billion ($15.74 million) in Q1. He added that Vinaconex aims to achieve a profit margin of at least 2% this year, ensuring no losses.
Regarding its engagement in the Long Thanh airport project in the southern province of Dong Nai, standing deputy general director Duong Van Mau said that Vinaconex is in charge of two bidding packages, making up 11% of the project’s capital. It has properly prepared and planned material inputs required for construction despite the closure of some stone quarries and material price surges.