Tracodi intends to be listed on Hanoi Stock Exchange HNX in the 4th quarter of 2016 and to raise its charter capital from 78.5 billion dong to 324.8 billion dong, an increase of four times, through private placement of shares to existing shareholders at a ratio of 1:2:5, offering of three million shares to employees and 1.5 million shares to strategic shareholders. It is proposed that dividend of 2015 is 6.5%.
New Tracodi upon its restructuring process
Formerly known as Transport and Communication Development Investment JS Corporation, Tracodi was a State-owned enterprise of Ministry of Transport and Post headquartered at Ho Chi Minh City. With 25-year history of development, Tracodi has created a prestigious brand in the field of stone exploitation, construction, tourism, labor export and goods export as well.
Tracodi has officially organized as 100% private capital joint stock company and become a subsidiary of BCG which is accounted for 68% of its owner’s equity since April 2015. Tracodi faced with many difficulties and suffered loss of 1.2 billion dong in 2014 before privatization, in which there was hardly any profit from main business sectors and financial income mostly amounted to its revenue.
Upon BCG’s acquisition, however, appropriate restructuring process has promoted Tracodi’s business and production. Tracodi holding company, therefore has obtained great achievements. Its revenue reached 112 billion dong, a growth of 46% compared to that in 2014 and achieved 101% of plan in 2015. In addition, its profit dramatically climbed at 6.5 billion dong but only achieved 69% of target.
| OPERATING INDEX |
2014A |
2015A |
| Gross profit margin |
2.6% |
2.2% |
| Net profit margin from business |
-1.2% |
3.5% |
| Profit after tax margin of holding company |
-1.6% |
5.8% |
| Asset Turnover Ratio |
0.5 |
0.7% |
| Fixed asset turnover ratio |
36.6 |
75.6% |
| Current asset turnover ratio |
1.5 |
2.8% |
| Return On Capital Employed (ROCE) |
-1.5% |
7.6% |
| Return on total assets (ROA) |
-0.8% |
4.1% |
| Return on common equity (ROE) |
-1.5% |
7.7% |
Besides, its payment ratio remained at sound level, especially quick payment ratio rose by 0.3 because a speedy downward trend of inventories in 2015, at 74% compared to that in the same period. It is evident that Tracodi’s finance remains stable because debt amount also accounted for only 46% of total asset.
| PAYMENT INDEX |
2014A |
2015A |
| Current payment ratio |
1.7 |
1.5 |
| Quick payment ratio |
1.1 |
1.4 |
| Cash payment ratio |
0.1 |
0.1 |
| Total debt/total asset |
49.1% |
46.3% |
| Total debt/equity |
96.5% |
86.3% |
Tracodi intends to be listed on Hanoi Stock Exchange HNX in the 4th quarter of 2016 and to raise its charter capital from 78.5 billion dong to 324.8 billion dong, an increase of four times, through private placement of shares to existing shareholders at a ratio of 1:2:5, offering of three million shares to employees and 1.5 million shares to strategic shareholders. It is proposed that dividend of 2015 is 6.5%.
It is planned that Tracodi’s revenue and profit in 2016 is 800 billion dong and 50 billion dong, a 7.1 and 7.7 fold increase respectively compared to those in 2015. The gross profit margin upsurges sharply from 2.2% of 2015 to 13.3% of 2016’s plan. This results from various revenue sources and M&A projects to invest into agricultural products and coffee export enterprises next time. Due to such positive achievements, it is expected to offer shares on HNX in the fourth quarter of 2016.
Potentials from future projects
Upon Bamboo Capital’s restructuring process, such robust change in business and production results has not reflected all potentials of Tracodi yet. In the meeting with investors held in the morning of April 6, 2016, Bamboo Capital Management Board announced its on-going investment projects with unit members. It is noticeably that the project of Cu Chi Trade Centre with area of over 78,000 m2, total investment capital of 379 billion dong will be deployed in the first quarter of 2018 by unit member – Tracodi.
Tracodi has invested effectively in Antraco – a stone exploitation company which owns a stone quarry with deposit of 28.63 million m3 – the biggest one in An Giang province. Upon BCG’s acquisition, the Company increased its annual capacity from 600,000 m3/year up to 1,000,0000 m3/year (a sixty-percent increase) for huge demand of infrastructure construction in Southern region.
Distribution of stone quarry in the Western region
| Province |
Type of stone |
Deposit (million m3) |
| An Giang |
Granite |
28 |
| Kien Giang |
Granite, limestone |
1 |
Antraco – Tracodi’s subsidiary has hardly any competitor due to small minority of stone quarry in Southern region and high transport cost. Antraco’s revenue uplifted rapidly in recent years when infrastructures in the Southern region have been invested strongly to cope with saltwater intrusion – a severe effect of Elnino.
Although other business activities such as labor export, goods export, taxi business have made a small contribution into Tracodi’s revenue and profit, such activities enables it to maintain cash flow steadily.
According to the consolidated financial statement of 2015, due to effective investment plans, its profit after tax gained 26.5 billion dong over charter capital of 78.5 billion dong (EPS reached more 2.500 dong/share), a profitable level, in comparison with other listed companies in the market.
Such above achievements proves clearly that listing on the stock exchange in the fourth quarter of 2016 of Tracodi is a strategic milestone of Bamboo Capital JSC (BCG).
Vietstock
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