Transport heavyweight Deo Ca estimates 2023 profit 9% higher than target

Deo Ca Transport Infrastructure Investment JSC, a subsidiary of “tunnel king” Deo Ca Group, expects its 2023 profit to reach VND370 billion ($15.2 million), up 24% year-on-year and exceeding the plan by 9%.

The company, listed on the Ho Chi Minh Stock Exchange (HoSE) as HHV, said this year’s revenue is expected to hit VND2.56 trillion ($105.2 million), an increase of 22%.

The business results are better than expected as its build-operate-transfer (BOT) projects have seen vehicle traffic growing again post the pandemic, resulting in increased toll revenue compared to 2022. HHV has also implemented a series of large projects using public investment.

In 2023, amid a rising wave of public investment, HHV has continuously won bids for high-value projects such as Quang Ngai-Hoai Nhon Expressway, a project to upgrade and expand Prenn Pass in Lam Dong province, Binh Dinh coastal road, and a coastal road connecting to Lien Chieu port in Da Nang city.

At an investment promotion program in early November, an HHV leader noted that the government's determination to complete 5,000 kilometers of expressways by 2030 and preparations for the construction of the North-South high-speed railway bring great prospects to transport infrastructure developers like HHV.

“The country has put into operation more than 1,800 kilometers of expressways. This is a great chance for HHV to engage in investment, construction, management and operation of the expressway network,” he said.

In the 2023-2025 period, HHV proposes to invest in developing nearly 400 kilometers of expressways, including the Dong Dang-Tra Linh Expressway connecting Lang Son and Cao Bang provinces, Huu Nghi-Chi Lang Expressway in Lang Son province, Tan Phu-Bao Loc Expressway in Lam Dong province, and Ho Chi Minh City-Chon Thanh Expressway’s section through Binh Duong province with a total investment of about VND100 trillion ($4.1 billion).

HHV has initially achieved its strategic goal when a consortium comprising Deo Ca Group, ICV Vietnam Investment and Construction JSC, HHV and 568 Construction JSC was selected as the investor to implement the first phase of the Dong Dang-Tra Linh Expressway under the public-private partnership (PPP) format, with a total investment capital of VND14.17 trillion ($583.63 million).