According to BCG’s Q1 FY17 consolidated business results, revenue from sales of goods and services reaches more than 396 billion VND, increasing by 49.2% over the same period of last year, and profit before tax is 15.8 billion VND.
Along with the revenue increase from sales of goods and services, BCG’s gross profit in Q1 FY17 rises to 48.2 billion VND, or 18.2% up from Q1 FY16. In the mean time, BCG has focused strongly on medium and long-term projects, which in turn leads to increasing financial costs and significantly reduces financial income over the same period of last year.
In 2017, BCG’s short-term strategy will continue to focus on export activities, including: cocoa, cassava starch, coffee, and micro-organic fertilizer in order to take advantage of the synergy and mutual production benefits between those companies within the Group.
In addition, medium-to-long-term cash inflows that will make a big difference in BCG’s value will come from the project of expanding and upgrading Interstates 830 & 824 in Long An, which is expected to be done by Q1/2018. Renewable energy is also a long-term strategy that BCG is deploying. As of today, BCG already received the approval letter from Long An Province on the investment of two solar farm projects with total capacities of 100 MW and 50 MW.
Tracodi’s 2017 Annual General Meeting has approved its business plan for 2017 with revenue of 879 billion VND and profit after tax of 63.7 billion VND, or 5.5% and nearly 6% up from 2016, respectively.
This May, Tracodi (stock quote: TCD), a subsidiary of BCG, will officially be listed on Ho Chi Minh City Stock Exchange (HSX). After being listed, the company will pay a dividend of 6% in 2016 and expect to pay 12% in 2017. TCD’s shares price will start at 16,000 VND/share. As a result, BCG’s M&A investment strategy has gradually come to fruition when some of its subsidiaries begin to make profits and pay dividends. Investors with medium-to-long-term vision are likely to achieve the highest return on investment when holding BCG shares.