**Becamex IDC: A Leading Industrial Development Corporation in Vietnam**
Becamex IDC, or BCM, is a joint-stock company that was transformed from the sole-member limited liability Company of the same name in 2018. Its main business lines include real estate, infrastructure development in industrial parks (IPs), residential and urban areas, as well as providing wastewater treatment services for these areas. As of Q2 2024, BCM has 11 subsidiaries, 13 associated companies, and 2 jointly-controlled companies.
In terms of shareholder structure, the People’s Committee of Binh Duong Province owns 95.4% of the shares, while foreign shareholders hold 1.8%. Given that the province has a majority stake, the company’s management team represents the province’s capital.
BCM currently operates six IPs: My Phuoc 1, My Phuoc 2, My Phuoc 3, Thoi Hoa, Bau Bang, and the expanded Bau Bang IP. Together, these IPs cover over 4,000 hectares of land, with more than 2,900 hectares available for lease. The infrastructure development in these IPs has reached over 95% completion, and they boast an impressive 88% occupancy rate.
In the past, BCM primarily focused on developing IPs and urban service areas in Binh Duong Province. However, to keep up with new trends, they are now exploring and implementing new projects in other provinces such as Binh Phuoc, Binh Dinh, and Tay Ninh.
According to the Q2 2024 financial report, the company’s revenue reached VND 1,162 billion, a 10% decrease compared to the same period last year. However, net profit surged by 175% year-on-year due to a significant increase in profit sharing from VSIP, which rose by 145%, and the recognition of profit from joint ventures amounting to VND 123 billion. The main business segment, industrial and residential real estate, recorded a 12% decrease in revenue, amounting to VND 1,171 billion.
For the first six months of 2024, the company’s revenue reached VND 1,973 billion, a 5% increase year-on-year, while net profit reached VND 499 billion, a substantial increase of 188% compared to the same period last year.
For the full year 2024, BCM set a target of VND 9,000 billion in total revenue (up 2% from 2023), VND 6,300 billion in pre-tax profit (up 3%), and VND 2,350 billion in after-tax profit (up 3%). Thus, the company has only achieved 22% of its revenue and profit targets so far.
Due to the nature of developing multiple projects simultaneously, BCM has raised a significant amount of capital. As of Q2 2024, the company’s total debt stood at VND 21,273 billion, including VND 9,323 billion in short-term loans and VND 11,950 billion in long-term loans, a 7.8% increase from the beginning of the year. The value of bonds issued at the end of the period was VND 10,506 billion. BCM’s debt-to-equity ratio is 107%, higher than the industry average.
Looking ahead, MBS forecasts BCM’s revenue for 2024-2025 to reach VND 6,549 billion (down 17% year-on-year) and VND 6,422 billion (down 2% year-on-year), respectively. This includes an expected 56% and 13% growth in industrial park land leasing revenue, assuming an improvement in investment flows into Binh Duong as the global economy recovers.
Large-scale IPs like the Cay Truong IP, Becamex Binh Phuoc, and Becamex VSIP Binh Dinh are being fast-tracked for operation. Profit from joint ventures and associates is projected to reach VND 1,371 billion and VND 1,580 billion, respectively, for the two years, with significant contributions from VSIP and IJC, among others.
In summary, MBS projects a net profit of VND 1,775 billion and VND 2,284 billion for BCM in 2024 and 2025, respectively, representing a 27% decrease and a 29% increase compared to the previous year.
Pha Le
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Accelerating disbursement of the 120 trillion VND credit package for social housing
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Bamboo Capital (BCG) surpasses 4,000 billion VND in revenue, reduces debt by 5,500 billion VND by 2023
The amount of debt to be paid has been reduced by more than 5,498 billion VND as the Group has actively settled all borrowings in order to lessen the cost of interest and ensure financial stability for the business.
“Prosecution of government officials, land registration officers, and tax department employees in the largest bribery case ever”
The Thanh Hoa Police Investigative Agency has initiated legal proceedings against 23 individuals involved in the crimes of “Bribery” and “Receiving bribes”. This is the largest bribery case in terms of the number of suspects ever discovered and apprehended by the Thanh Hoa Police.
