Deo Ca Traffic Infrastructure Investment JSC (HHV) plans to continue focusing on transport infrastructure development despite its modest profit margin of 15%, said chairman Ho Minh Hoang.
At the company’s annual general meeting of shareholders in Da Nang city on Monday, Hoang said 15% is a "very modest" figure compared to that of the real estate sector, "but public investment services could not record extraordinary growth".
"I have been advised many times to follow multi-sector development and invest heavily in real estate, but Deo Ca remains committed to transport infrastructure. We rely on our capacity, optimize production, and work efficiently across the board to ensure sustainable operations," said Hoang.
The chairman also advised shareholders with quick profit-taking intentions to divest, leaving shares to those who have faith in the company’s strategies because HHV will become a "qianlima", the mythical horse originating from the Chinese classics that is able to travel one thousand “li” or 500 kilometers in a single day.
"Many shareholders still believed in HHV's strategy despite its plunging stock prices. They have harvested sweet fruit," he said.
Currently, HHV has 30,000 shareholders and close partners including businesses, investors and localities housing its projects, investment funds and securities companies.
"Partners and shareholders have put their trust in us, so we must invest efficiently and ensure our projects are transparent," he noted, adding the company will apply modern technology to implement transport infrastructure projects, enhance risk management for stable growth, and create a "real business" environment.
In 2023, HHV is targeting VND2.48 trillion ($105.46 million) in consolidated revenue and VND338 billion ($14.38 million) in consolidated after-tax profit, up 18% and 14% year-on-year, respectively. It also plans to pay share dividends worth about VND215 billion ($9.15 million).
This year, the company expects to raise VND1.56 trillion ($66.5 million), including VND823 billion through offering shares to existing shareholders and VND741 billion from the private placement of shares.
HHV has won three bidding packages under the North-South Expressway project’s Quang Ngai-Hoai Nhon section with a total value of nearly VND14.5 trillion ($617.14 million), he said, adding that it will join tenders for construction and installation packages of public investment and public-private partnership (PPP) projects, worth an estimated VND4 trillion ($170.24 million).
In the 2023-2025 period, the company plans to invest in the Tan Phu-Bao Loc, Dong Dang-Tra Linh, Huu Nghi-Chi Lang expressways with a total investment of about VND40 trillion ($1.7 billion).
In 2022, despite numerous difficulties due to shortages and high prices of raw materials, HHV achieved net revenue of VND2.1 trillion ($89.16 million), an increase of 12% over the same period in 2021. The company's after-tax profit reached VND297 billion ($12.64 million), up 2.3% year-on-year, while its total toll collection expanded by 17.43%.
On the Ho Chi Minh Stock Exchange, HHV shares were selling for VND12,800 ($0.54) per unit on Monday, a rise of 1.19% from the previous session.