In early 2015, taking SCIC’s divestment opportunity, Bamboo Capital (BCG) has acquired 68% of the stake which helps to hold controlling shares of Transport and Industry Development Investment Join Stock Company (Tracodi).
Tracodi has 25 years of operating history in many fields such as infrastructure construction, taxi transportation, quarrying and labor export. Despite of many advantages, while the state was still holding controlling shares, the company’s performance was not as effective as it could have been.
Since taking over Tracodi in April 2015, Bamboo Capital has made comprehensive and strong restructuring on the company’s business operations. Financial indicators have reflected the new leadership’s efforts with fiscal year 2015 estimated sales of 114 billion dong and estimated profits of 8.1 billion dong. Meanwhile, in 2014 the company had net loss of over 1.2 billion dong.
Restoration of core activities
One of Tracodi’s core activities is labor export, now turning towards a high quality segment. The company has potential advantages in labor export, always in top companies by market shares and with confirmed strengths in markets like Taiwan, Japan, Korea. In 2015 Tracodi’s Center for labor supply and vocational training Lamatcen brought 1,709 employees to Taiwan; 338 trainees to Japan, outperforming the plan by 14%.
The new leadership has made a strategic change to focus on Japanese labor market, the one with increasingly high demand for Vietnam workers. Japan is a country with high entry barriers for foreign labors, however it also offers higher incomes, at average $1,500 to 3,000 per month, as well as good initial support policies.
Infrastructure construction activity has made its move after a long hibernation. In spite of existing strengths in the industry, in recent years Tracodi has gradually lost its competitive position.
The recovery and push-up of infrastructure construction is among important business strategies for a comprehensive restructuring at Tracodi. In May 2015, Tracodi signed a strategic cooperation agreement with Pacific Property & Infrastructure Development Joint Stock Company (PPI) to form PPI-Tracodi joint-venture which is supposed to do transportation projects including BTs, BOTs, and BTOs.
In December 2015, Tracodi also signed an MOU with Capri by Fraser – an apartment rental service line under Fraser Hospitality global group. The MOU is for both sides to work together on development of Tracodi’s real estate projects in 2016.
Tracodi’s import and export line has a big transition from doing purely entrusted import into product distribution.
Taking advantages from the parent company Bamboo Capital, recently Tracodi has collaborated with Thanh Vu Tay Ninh, a leading manufacturer of cassava starch, in order to export starch products to Korean, Japan and Europe, etc.
Signing ceremony between Tracodi and Capri by Fraser in HCMC, 31.12.2015
Flourish joint-venture activities
One of the most profitable investments by Tradico is Antraco – a company specializing in quarrying. In the first 9 months of 2015, Antraco has reached 178 billion dong in revenue – a 44% growth and 31 billion dong in after-tax profit – rising 67% compared to the same period of 2014. This is an impressive earning given that Antraco’s charter capital is modestly 18 billion dong. It is expected that in Quarter 4 of 2015, Antraco will record net profit of more than 10 billion dong.
Total mining production in the first 9 months of 2015 was 1,024,132 m³, completing 85.34% of 2015 production plan and increasing by 34.51% compared to that of the same period of 2014.
In taxi transportation service, Tracodi owns 30% of the stake in Vinataxi joint venture and is negotiating with partners to increase to 49% ownership. Currently there are more than 400 Vinataxi cars running in HCM city, making steady annual revenue of 60-70 billion dong and profit after tax of 10-12 billion dong.
Bamboo Capital also supports other joint venture partners in order to restore Vinataxi position with a 2,000-car expansion plan by the end of 2016.
The fierce and strong restructuring in Tracodi has helped the company to improve its financial situation, not only making up for accumulated losses, but also putting the company onto a healthy stable stage. Expected in quarter 2/2016, Tracodi will complete the procedures to list its shares on the Stock Exchange.
Source: http: //cafef.vn/doanh-nghiep/tracodi-tinh-hinh-kinh-doanh-khoi-sac-sau-k …