CC1-Holdings has just registered to purchase 2.2 million CC1 shares through matched orders and order matching, expected to be executed from August 28 to September 26, 2024, for investment purposes.
If successful, CC1-Holdings will increase its ownership from nearly 16 million shares (4.46%) to over 18.1 million shares (5.08%) and officially become a major shareholder of CC1.
CC1-Holdings’ move comes as the CC1 share price has fallen 16% since the beginning of the year, currently standing at VND 13,300 per share at the close of August 26. Based on this price, it is estimated that CC1-Holdings will need to spend more than VND 29 billion to complete the deal.
| CC1 Share Price Movement since the Beginning of 2024 |
CC1-Holdings became a shareholder of CC1 at the beginning of 2024 after purchasing nearly 16 million shares through a matched order to reach its current ownership percentage. Prior to this, CC1-Holdings did not hold any CC1 shares.
Established in September 2016, CC1-Holdings, formerly known as Deep Acting Productions Co., Ltd., primarily provides management consulting services. Its head office is located at 111A Pasteur, Ben Nghe Ward, District 1, Ho Chi Minh City.
The initial chartered capital was VND 100 million, with two shareholders, Ms. Tran Le Khanh Hoa and Ms. Nguyen Thi Lan, each holding 50% of the capital. In December 2022, the chartered capital of CC1-Holdings increased significantly to VND 500 billion, of which Mr. Nguyen Van Huan, Chairman of the Board of CC1, contributed VND 375 billion, holding 75% of the capital. The remaining shareholders are Ms. Vu Thi Kieu Oanh (20%) and Ms. Nguyen Thi Quyen (5%). Currently, Ms. Nguyen Thi Quyen is the legal representative of the company.
Turning back to CC1, Chairman Nguyen Van Huan currently holds over 39.5 million shares, equivalent to 11.03% of the capital. If CC1-Holdings’ transaction is successful, the group of shareholders related to Mr. Huan will increase their ownership in CC1 to over 57.7 million shares, equivalent to 16.11%.
Net profit for Q2 2024 was 2.5 times higher than the same period last year
In the second quarter of 2024, CC1 recorded a gross revenue of more than VND 2,272 billion, an increase of 84%, and a net profit of nearly VND 27 billion, 2.5 times higher than the same period last year.
The company attributed the profit fluctuation in this quarter to the business development of its subsidiaries, which led to an increase in the company’s profit.
For the first six months of the year, CC1’s gross revenue exceeded VND 3,667 billion, twice as much as the first half of 2023, and its net profit was nearly VND 36 billion, an increase of 83%. The significant increase in revenue was mainly driven by the construction segment, which contributed more than VND 2,377 billion, 2.2 times higher than the previous year, and the merchandise sales segment, which generated nearly VND 1,162 billion, almost doubling the revenue from the same period last year.
 Source: CC1
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For the full year 2024, CC1 has set ambitious business plans with a gross revenue target of VND 11,600 billion and a pre-tax profit target of VND 590 billion, both approximately double the figures achieved in 2023, marking the highest records for the company since its listing on the UPCoM in 2017.
Compared to the plan, the company has achieved 32% of its revenue target and has a long way to go to meet its pre-tax profit target, having only fulfilled 8% of it in the first six months.
CC1 won 21 bids worth nearly VND 16.5 trillion in 2023. Is the ambitious 2024 plan achievable?
In another development, on June 27, 2024, the Hanoi High People’s Court issued a verdict in the appeal trial related to the criminal case of the defendant Nguyen Van Thuat and other defendants for the crimes of “Violation of regulations on investment in construction works, causing serious consequences” and “Negligence causing serious consequences”. The court ruled that CC1 must refund more than VND 47.5 billion to the Vietnam Expressway Corporation (VEC).
