State to further divest from building material producer Viglacera

Viglacera, Vietnam's leading producer of building materials, is mulling over schemes to sell state capital on June 30.

Viglacera, listed on the Ho Chi Minh Stock Exchange (HoSE) as VGC, will hold showcases related to this offering in the coming time.

As of December 31, its total liabilities had reached VND14.14 trillion ($602.26 million).

VGC currently has a charter capital of VND4.48 trillion ($191 million), of which the Ministry of Construction holds a 38.58% stake, equivalent to 173 million shares. The company's largest shareholder is Vietnam Electrical Equipment Joint Stock Corporation (HoSE: GEX) with a 50.21% stake.

VGC had divested state capital in the phase 1 in 2019. The divestment move this time is in line with the state's policy to divest capital in some companies.

According to the construction ministry, the proceeds of more than VND5.8 trillion ($247 million) will come to the state budget.

The VGC shares jumped 6.91% to VND40,900 ($1.74) at Tuesday's close, the highest since the beginning of the year. In September 2022, VGC shares once reached nearly VND70,000 ($2.98).

In 2023, VGC sets a revenue target of VND16 trillion ($681.12 million), up 10% and pre-tax profit of VND1.3 trillion ($55.34 million), down 44% year-on-year. However, the company is expected to keep the dividend rate as in 2022 at 20%, VND2,000 ($0.08) per share.

In the first quarter of 2023, VGC recorded net revenue of VND2.78 trillion ($118.2 million), down 28% and after-tax profit of VND151.5 billion ($6.45 million), down 80%.

The company said that the commercial housing business's revenue decreased sharply in the quarter compared to the same period last year. Its building materials sector also faced difficulties in sales, with both selling prices and sales volume declining.

As of March 31, 2023, the company's total assets had stood at VND23.32 trillion ($993.42 million), up 1.5% compared to the beginning of the year, while liabilities were VND14.09 trillion ($600.4 million), of which short-term debt accounts for 60%.