VINACONEX reports strong financial results in 2023 and ambitious plans for 2024
On April 24, 2024, VINACONEX JSC (Stock code: VCG) held its annual general meeting of shareholders at Vinaconex building, 34 Lang Ha (Dong Da district, Hanoi), to approve the 2023 business results and the 2024 plan.
At the meeting, the Board of Directors announced that in 2023, the consolidated total revenue reached VND 12,965 billion (135% compared to 2022), and the after-tax profit reached VND 396 billion (43% compared to 2022). Among them, the parent company continued to lead the system with a total revenue of VND 8,741 billion (106% compared to 2022), and after-tax profit of VND 220 billion (78% compared to 2022).
Last year, Vinaconex won numerous large contracts with a total value of around VND 13,200 billion in several major national projects. These include: 2 contract packages in Long Thanh International Airport Project; some packages in the investment project to construct the North-South Expressway in the 2021-2025 period (sections Bai Vot-Ham Nghi, Vung Ang-Bung, Van Phong-Nha Trang, Bien Hoa-Vung Tau); package 09-TP2/XL in the project of the 4th ring road in the capital region, and more.
In addition, Vinaconex is also involved in other major foreign-invested projects, namely Hung Yen Clean Industrial Park, Vung Ang II Thermal Power Project (Ha Tinh), and JSH Ha Nam project.
Notably, in 2023, Vinaconex completed and put into operation many key infrastructure projects including: contract packages in the component project of the North-South Expressway, phase 1 (sections Vinh Hao-Phan Thiet; Phan Thiet-Dau Giay, Mai Son-QL 45); Vinh Tuy Bridge (phase 2), Phu Bai International Airport Terminal 2, and more.
The remaining projects, such as the North-South Expressway phase 2, Tuyen Quang-Ha Giang Expressway, Long Thanh International Airport, the 4th ring road-Hanoi, Hung Yen Clean Industrial Park, Vung Ang II Thermal Power Plant, and JSH Ha Nam project, are still under construction.
VINACONEX JSC organizes the annual general meeting of shareholders in 2024.
Currently, Vinaconex owns a land fund of over 2,000 hectares, providing the market with diverse real estate products such as housing (apartments, villas, townhouses), urban tourism – resort complexes, and industrial park infrastructure.
In particular, Vinaconex has also participated in the development of several high-end real estate projects such as Green Diamond 93 Lang Ha Project, Cat Ba Amatina Project – one of Vinaconex’s key resort real estate projects this year, and Hoa Binh Boulevard urban area project (Mong Cai).
Additionally, the Dakba Hydropower Project (Quang Ngai), invested by Bach Thien Loc Joint Stock Company (of which 99.9% of the charter capital is owned by the Corporation), was constructed within a record time of 24 months and entered stable commercial operation.
In the face of an unfavorable market, especially for resort real estate products, Vinaconex has also proactively adjusted the implementation plan of some projects in Quang Nam and Phu Yen to ensure capital safety and investment efficiency. Besides, Vinaconex has actively sought and developed projects, with the highlight being the project to invest in the construction and business of Dong Anh Industrial Park infrastructure, approved by the Prime Minister.
In addition to arranging sufficient capital for business operations, Vinaconex has also repurchased bonds worth VND 2,200 billion ahead of schedule.
Stepping into 2024, Vinaconex’s Executive Board has set a target for business production with consolidated after-tax revenue and profit of VND 15,000 billion and VND 950 billion, respectively, corresponding to 115% and 240% of the target achieved in 2023. The parent company aims to generate revenue and after-tax profit of VND 10,500 billion and VND 860 billion, respectively (equivalent to 120% and 391% compared to 2023). Vinaconex is expected to pay a dividend yield of 12%.
At the meeting, Vinaconex submitted to its shareholders a plan to issue shares to increase its charter capital. The charter capital is expected to reach over VND 5,986 billion after the issuance to pay the 2023 dividend. The issuance is expected to take place in 2024, subject to approval by the State Securities Commission.
In response to shareholders’ questions about the business plan, Mr. Dao Ngoc Thanh – Chairman of Vinaconex, said that the Green Diamond high-end project (93 Lang Ha), consists of 324 apartments, including 100 resettlement apartments and 224 commercial apartments. The project has been inspected and completed in 2023 and the sales and issuance of red books have been finalized. Furthermore, Green Diamond’s revenue was recognized in the 2023 financial statements at VND 1,734 billion, and in 2024, the revenue is expected to continue to contribute VND 906 billion.
In addition, the Company is continuing to explore opportunities to invest in urban projects in provinces such as Phu Tho and Ninh Binh, and is carrying out legal procedures related to the investment project to construct and operate the infrastructure of Dong Anh Industrial Park (Hanoi).
Providing more information on the capital injection for the Cat Ba Amatina project, Mr. Dao Ngoc Thanh, Chairman of the Board of Directors, said that the Cat Ba Amatina project is a special real estate project initiated in the past, and the Vinaconex leaders later revived it after divesting its capital. This project belongs to a subsidiary of Vinaconex.
The project has completed the legal procedures, all the areas have land use rights certificates, and the infrastructure, including electricity, water, and leveling, is basically finished. The remaining new part has not yet been put into operation due to market difficulties. The project has completed infrastructure and is ready to operate when the market permits. As this is a resort project and not an essential demand like housing, the demand is weaker.
Mr. Thanh also added that the Corporation has agreed with the Board of Directors of Vinaconex ITC to prepare a sales plan this year, and may sell a part of the project (wholesale) if the price is suitable. If Vinaconex sells at a low price now, it will not be able to sell at a higher price in the future. Vinaconex is looking for partners to sell, striving to recognize part of its revenue this year.
“Regarding the VND 2,200 billion withdrawn by Vinaconex from its cooperation with VCR, due to the weak market, Vinaconex has issued bonds to build two hotel towers, but the market situation was unfavorable and it was difficult to sell the apartments, so the decision was made to temporarily suspend construction and withdraw the funds to pay bond interest, it was not Vinaconex withdrawing from the Cat Ba project,” said Mr. Thanh.
Answering shareholders’ questions about the Dong Anh Industrial Park project, the Chairman of the Board of Directors added that the project was approved less than two months ago. Investing in Vietnam is very difficult, especially in terms of site clearance, and land acquisition in the capital is particularly challenging.
Regarding the capital increase plan in 2024, Mr. Thanh said that the company also plans to increase its capital, enhancing the Corporation’s capacity to meet large contracts. The Corporation has signed a major cooperation agreement with a Chinese contractor to study and invest in two major projects, namely Tu Lien Bridge and Metro Line 5, Van Cao – Ngoc Khanh section.
In addition, Vinaconex is also focusing on participating in large-scale projects such as the high-speed railway project in the coming years. To increase its capacity, Vinaconex must raise its capital and build a better workforce.
