On June 18 2018, at the annual general meeting of shareholder, the delegates from Bamboo Capital Joint Stock Company (BCG) stated that in these recent years, the stock price went down approximately at 5,000-6,000VND/stock because of negative profit margin. However, BCG always finds new partners and tries their best to stars commissioning new projects as soon as possible.

In the end of the 2018, it’s predicted that the real estate investment will have positive profit because of the operation of many projects as well as the commissioning of DT 830 BOT in Long An province. In addition, BCG also develops an investment in renewable energy in order to get the great profit in next 2020.

EPS IN 2019 WILL BE INCREASED BY 5 TIMES UP TO 5,000VND!

In 2018 business scheme, BCG sets its revenue target at 1,981 billion VND while the profit before and after taxes are 112 billion and 89 billion VND, which increased sharply by 49%, as compared with the previous year. Nevertheless, there’s nothing change during last 6 months because most of the profit and benefits are being collected in next third and fourth quarter of 2018.

So, with recent budget, the profit in the end of year will increase significantly to 89 billion while 2017 was only 60 billion VND and the EPS of company is also improved dramatically from 500 to 1,000 till the end of year. Furthermore, based on 2019 business scheme, the net profit will rise suddenly to 650 billion VND while EPS will grow by 5 times to 5,000 VND because of the operation of some real estate projects.

Next, based on the company’s strategies, Bamboo claims that the company will much more focus on 3 main portfolios which are infrastructure, real estate and renewable energy. On the first February 2018, Bamboo decided to divestment in Phu Thuan S&T Co. LTD. However, on these first months, the revenue and profit of Bamboo still depend mainly on commercial production. By contrast, some potential real estate projects as Malibu (Quang Nam), Dragon Bridge (Da Nang) and Thao Dien (Ho Chi Minh) will bring amount of profit and revenue in the end of year.

Additionally, according to Mr. Nguyen Ho Nam (Co-founder and Chairman of Bamboo Capital) stated that as the main strategy of company is joint-venture cooperation so Bamboo has a chance of supporting to improve two marginal which are export with profit margin at 100% while other portfolios like management, design, and output or capital and reputation are supported very well by MGM and Korean partners.

As a result, in order to develop these portfolios as greatest, Bamboo will cooperate with potential professionals in each portfolios such as Chosun Refractories, Deawon, Woomi Construction, MGM…

THE REAL ESTATE WILL BRING HUGE PROFIT AND REVENUE FOR BCG

One of attractive real estate projects of Bamboo Capital is Casa Marina Resort (Quy Nhon) which has total area is 2,5 ha with the total investment size at 8 million USD, has been commissioning since fourth quarter 2017. It is now recovering the capital about 6-70% and making profit very well.

For the main reason of deploying Casa Marina Resort, Mr. Nam said: “Quy Nhon is a potential tourism investment and its airport is exploiting the  international flight route. Thus, its real estate as well as travel activities are developing positively. Consequently, BCG will extend 11ha of area for more 120 villas.

Furthermore, for the Malibu project (MGM Hoi An) in Quang Nam – Da Nang, it’s predicted that real estate price here will be positive growth regularly, especially in its center, the price ranges between 200-300million/m2. Therefore, BCG invested in Malibu Resort Project with total area 11ha with 66 million USD for investment cost, commencement on the end of this August 2018 and sell on 3rd quarter while 2020, the Malibu project will have about 100 villas and more than 500 condotels.

In addition, BCG also  invest significantly in service apartment which is Thao Dien Hotel with total area up to 9,125m2 and investment cost is 97,8 million USD, the project will be deploymented in next fourth quarter 2018 and first quarter of 2019. Besides, Cau Rong project will also carry out on March 2019, this projects has 11,487m2 for total area while 198,2 million USD for investment cost. Moreover, the benefits and profits for BCG also comes from social projects in Long An with total area at 11ha and 62 million USD for total investment cost as well as Prince Court Hotel has total area about 1,048m2 which is located in District 1 Ho Chi Minh city and its total investment approximately at 42 million USD.

So, these also means that the profit on 2019 of BCG may increase dramatically which depends on the growth sharply in real estate, the profit is provisional calculation at 4,065 billion VND increased twice as compared with the present year 2018 while the profit after tax will increase by 5 times to 507 billion VND.

A HUGE EXPECTATION OF RENEWABLE ENERGY IN 2020

To archive the best benefit as much as possible, Bamboo Capital also invested an amount of budget in renewable energy projects like Solar Energy. In this new portfolio, Bamboo invests in two Solar projects which are 40MW and 100MW in Long An province. One of them, a 100MW project is cooperated with Hanwha Group (Korea) and will be commissioning on June 2019.

In 2020, Bamboo’s income will move from real estate to solar energy because real estate project will go on completion stage while solar energy is operating which has higher proportion and expected profit will increase a lot by 29,5% in this year.

For the energy portfolio, directors of Bamboo capital claimed that there was always a lack of energy in Vietnam though the inputs like coal power, hydroelectric and gas power were a lots. Therefore, Bamboo decided to invest in this potential portfolio with 490MW solar energy  project which cooperated with Hanwha group. 

For the capital of implementation, Bamboo has a plan to sell 100 billion VND of bonds (1 billion VND/bond). It has an interest rate about 5% /year with the period of 3 years and the expected exchange rate equals to 10,000/stock. This budget will be invested in BCG Bang Duong Joint Stock Company by Bamboo Capital Group to perform 40MW solar energy project.

However, the stock trend of Bamboo Capital now negatively fluctuates, which means mobilizing caption will be limited. Thus, Mr. Nam said that Bamboo would buy treasury stocks (maximum 10%) in order to improve the stock price to 10,000vnd/stock.

 The fluctuation of Bamboo Capital’s stock last 6 months.

Especially, Bamboo now will improve the shareholders structure by decreasing shares owned by personal while share owned by large organizations will be encouraged to increase. Mr.Nam said: “Bamboo Capital only expects on the efficiency so there’s no matter if other organizations lead the company’s business”

Reference list:

CAFEF:

http://cafef.vn/dhdcd-bamboo-capital-bcg-day-manh-hop-tac-dau-tu-bds-va-…

Vietstock:

https://vietstock.vn/2018/06/dhdcd-bamboo-capital-ky-vong-gi-tu-cac-du-a…

Diễn Đàn Doanh Nghiệp: http://enternews.vn/bi-mat-nao-chua-the-tiet-lo-o-bcg-131156.html

Thông Tấn Xã Việt Nam: http://bnews.vn/bcg-huy-dong-von-chuyen-doi-co-cau-san-xuat-kinh-doanh/8…

VietnamNews: http://vietnamnews.vn/economy/450093/bamboo-capital-to-focus-on-core-bus…

Bizhub: http://bizhub.vn/markets/bamboo-capital-to-focus-on-core-business-activi…