Transport heavyweight Deo Ca fulfils 90% of year profit target after nine months

Deo Ca Transport Infrastructure Investment JSC, a subsidiary of “tunnel king” Deo Ca Group, had fulfilled about 90% of its 2024 after-tax profit target after nine months, up 17% year-on-year.

The company, listed on the Ho Chi Minh Stock Exchange (HoSE) as HHV, said its consolidated revenue in the third quarter of 2024 was estimated at VND773 billion ($31.34 million), up nearly VND100 billion or 15%, thanks to the good performance of two main business segments - BOT (build-operate-transfer) toll collection and construction.

Revenue from BOT toll collection hit VND471 billion ($19.1 million), an increase of 20% year-on-year, while that from construction activities reached VND250 billion ($10.14 million), accounting for 32% of total revenue.

In the first nine months, HHV's consolidated revenue was estimated at VND2.28 trillion ($92.44 million), and after-tax profit at around VND361 billion ($14.64 million), representing respective year-on-year rises of 25% and 17%.

With such results, the company said it had fulfilled 90% of its revenue and after-tax profit targets for this year.

HHV is the main contractor for the Quang Ngai-Hoai Nhon Expressway project which runs through the central provinces of Quang Ngai and Binh Dinh. This is the largest of the 12 components of the mega project North-South Expressway’s eastern section.

By the end of September 2024, over VND6.1 trillion ($247.3 million) had been disbursed for the project, equivalent to over 45% of the total contract value.

According to CEO Nguyen Quang, the project, which employs over 4,000 workers and more than 1,750 equipment items, is expected to be completed by the end of 2025, eight months ahead of schedule.

Also in Q3, an HHV-led consortium won a management and maintenance package for the road running from the north of Tam Diep Tunnel in the northern province of Ninh Binh to Dien Chau district in the central province of Nghe An. The project includes three mountain tunnels, namely Tam Diep, Thung Thi and Truong Vinh.

It also won a package for managing and maintaining the infrastructure of My Thuan 2 Bridge and the roads leading to the bridge and and a package for the My Thuan-Can Tho Expressway.

HHV is managing six expressways and National Highway No.1’s section through the south-central province of Khanh Hoa, along with My Thuan 2 Bridge and 11 mountain tunnels. Among them are the four largest mountain tunnels in Vietnam: Hai Van, Deo Ca, Nui Vung, and Cu Mong.

HHV shares closed Wednesday at VND12,200 ($0.49) apiece.