Annual General Meeting 2024 of SGT on the morning of April 19 – Photo: Huy Khai
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350 hectares of industrial land ready for 2024, about to announce a contract with a Korean partner
Opening the meeting, Chairman of the Board of Directors Dang Thanh Tam shared that 2023 has not yet recorded any specific projects but has compensated more than 100 hectares in preparation for 2024, the bank loan is also very good, so he believes that 2024 will certainly achieve good results.
According to Mr. Tam, Saigontel has about 350 hectares of industrial land that has been compensated and ready for operation, in the industrial park (IP) projects Dai Dong Hoan Son in Bac Ninh province, the industrial cluster (IC) in Thai Nguyen province and the IP in Long An.
He added that it is expected that up to 50 hectares will be handed over in 2024, but all payments from customers may not come this year because even though the investment license has been granted, the land has not yet been handed over and revenue cannot be transferred.
Speaking about the green growth orientation, Mr. Tam shared that a greener IP will attract larger corporations and technology industries because products exported to countries such as Japan and the United States require a certain proportion of green energy in the product. He added that SGT actively supports localities such as Dong Nai, Long An to implement these programs. He believes that in 2024, many high-tech enterprises will be attracted to rent land.
Another information shared by the Chairman of the Board of Directors of SGT is that there has been long-term contact with large corporations such as Nvidia, or will soon sign an official contract with Korean partners, and is expected to be announced in the near future.
Ambitious new business record
In 2024, SGT set a plan for revenue of 4,000 billion VND and profit before tax of 450 billion VND, respectively 3 and 6 times higher than the implementation in 2023. The focus of SGT is still on activities related to IP real estate, urban real estate, and telecommunications services, and gasoline.
If completed, SGT will have the highest business results in history, according to statistics from 2005.
Talking about the plan for 2024, Mr. Tam said: “Saigontel has set a practical plan, not setting it too high and then not being able to achieve it”.
Regarding IP real estate, SGT focuses on developing 7 projects. Notably, Dai Dong Hoan Son IP – Phase 2 (95.8 hectares in Bac Ninh province) has cleared 100% of the ground, expected to contribute 1,000 billion VND in revenue and 300 billion VND in gross profit.
Projects continue to be implemented are Nam Tan Lap IP (244.74 hectares in Long An province), expected to bring in 1,200 billion VND in revenue and 150 billion VND in gross profit; Industrial Clusters (IC) Tan Phu 1 – Tan Phu 2 (131 hectares) and Luong Son (35.54 hectares) in Thai Nguyen province, bringing in revenue of 670 billion VND, gross profit of 160 billion VND; Saigon office ICT 1 and 2 located in Quang Trung Software Park, HCMC, bringing in 25 billion VND in revenue, gross profit of 7.5 billion VND.
The unit price at Dai Dong Hoan Son IP – Phase 2 was disclosed by Chairman Dang Thanh Tam at about 150 USD/m2. As for the ICs in Thai Nguyen, due to their uniqueness and the business price in the neighboring area is around 80-120 USD/m2, the area that has been deposited is less than 20 hectares.
Sharing about the land price for business at Nam Tan Lap IP, General Director Nguyen Cam Phuong said that based on the land price in the nearby area of Long Hau, which is over 250 USD/m2 for an area of less than 5 hectares and about 240 USD/m2 for the lands over 5 hectares, it is possible to predict the price for Nam Tan Lap IP. She emphasized: “In the Long Hau area, there are many customers coming to ask but there is no land to deliver”.
The remaining projects such as the factory for rent in Da Nang high-tech park, expected to receive deposit or Tan Lap IP in Long An province that has not been constructed in 2024 will contribute to the business results in the future.
Mr. Tam added that the expected area to be deposited in 2024 is 50 hectares, but all payments from customers may not come this year because even though the lease has been signed, or even the investment license has been granted, the land has not been handed over and the revenue cannot be transferred yet. “2024 operations are good, but not all will become revenue”, Chairman of SGT shared.
Regarding urban real estate, 2 projects that may contribute to the business results in 2024 are Bau Tram social housing in Da Nang city with 883 billion VND in revenue, 10 billion VND in profit, and Saigontel Central Park apartment building in Bac Giang province with 49.5 billion VND in revenue and 700 million VND in profit. Other projects continue to be implemented include the commercial center, services and luxury apartments at 300A-B Nguyen Tat Thanh, HCMC and Hau Nghia town urban area, Duc Hoa district, Long An province.
Regarding the legal status of the project 300A-B, General Director Nguyen Cam Phuong said that SGT has fulfilled all obligations to the state, but the application for a construction permit still has some procedures with the Department of Construction, and the Department of Planning and Architecture has been delayed. She assessed that this is almost the only project to date in the form of a complex of commerce, offices, and permanent apartments, so the expected profit is very good. At the same time, SGT is in the process of selecting foreign partners to create a high-class complex.
No dividend, raising 3,000-3,500 billion VND
Although setting a record business plan in history, SGT has no plan to pay dividends but will retain all accumulated undistributed profits for reinvestment, and add to working capital.
In 2024, SGT is expected to continue arranging for capital sources of about 3,000 – 3,500 billion VND through capital increase as well as mobilization from strategic partners, borrowing from banks, financial institutions or investment cooperation to carry out the projects and add to the business capital.
Regarding the capital increase plan, SGT will implement a private offering of 75 million shares, equivalent to 50.7% of the outstanding volume. This is in fact a plan that was approved by the 2023 Annual General Meeting of Shareholders, but so far it has not been completed because SGT is still carrying out procedures to increase the maximum foreign ownership rate to attract investment capital from foreign investors. According to SGT, the maximum foreign ownership ratio at the Company is 0%, and the Company has reviewed and adjusted some non-operating industries that restrict access of foreign investors and has been granted a certificate of change of business registration by the Ho Chi Minh City Department of Planning and Investment.
According to Chairman Dang Thanh Tam, the implementation of the projects will depend heavily on the capital increase process.
In response to questions about the feasibility of implementing projects when there was very little money at the end of 2023 but the capital demand was large. According to Mr. Tam: “This issue is related to many
