(ĐTCK) At the ceremony of listing shares on Ho Chi Minh Stock Exchange (HOSE) last week, leaders of Transport and Industry Development Investment Joint Stock Company– Tracodi (TCD) said that the TCD’s business plan in 2017 are built close to reality, on the basis of recognition of feasibility and efficiency. This is the premise for TCD to develop in the coming time, after the complete restructuring period.
Specifically, in 2017, TCD will strive to achieve the revenue of more than VND 879 billion, profit after tax of VND 63.7 billion and expected dividend of 10-12%.
In the first quarter, TCD’s revenue reached VND167 billion, up over 90% from the same period last year. Of which, revenue from the business sector and stone mining were VND 85 billion, accounting for 50.84% of total revenue and VND 62 billion, accounting for 37% of total revenue, respectively. Profit after tax in the first quarter reached VND 15.1 billion.
The construction sector is expected to contribute significantly to TCD’s revenue and profit since 2017, after one year of consolidation and strengthening of marketing activities. By the end of 2016, TCD has recorded new results in construction activities thanks to partly participation in bidding package of BOT project of provincial road 830 in Long An, when the parent company Bamboo Capital Joint Stock Company (BCG) entered into a partnership agreement with Bang Duong Company to implement this project with a total investment of VND1,079 billion.
Beside concentrating on the works invested by BCG such as the BT project of upgrading the provincial road 830C, social housing project in Ben Luc District (Long An), leveling the infrastructure for the project of the solar power plant in Thach Hoa (Long An), TCD will continue to consolidate its effective construction capacity, strengthen the marketing of new projects to increase sales of new contracts.
Business operation will continue to contribute a large proportion of TCD’s profit. Last year, business operation completed 282% of revenue target, or VND 375.1 billion, gross profit of VND 12.2 billion. This result is due to a change in strategy when moving from entrusted importation to commercial import and distribution as well as change of management practices.
On this new strategy, TCD will continue to focus on a number of specific activities such as cooperation with Thanh Vu Tay Ninh Company (a leading cassava starch producer) to search the export methods of starch products to the markets of Korea, Japan, Europe; cooperation with 1-5 Automobile Joint Stock Company as a public bus distribution agent to the Southern area; deployment of domestic trading segment for microbial fertilizer products based on the advantage of investing in Vinacafe Fertilizer JSC; combination with construction activities to exploit agents supplying construction materials such as sand and stone, etc. The areas of activities are abundant and advantageous for TCD to develop business activities.
Antraco stone mining joint venture, in which TCD owns 51% of its capital, will continue to contribute stable profits. In 2016, Antraco’s stone mining revenue reached VND 356.5 billion, surpassing 137.1% of the plan and an increase of 38.8% over 2015. Antraco’s profit after tax reached VND 56.7 billion, reaching 191.3% of the year plan and increased 51.1% (VND 19.2 billion) compared to 2015. Antraco’s dividends to TCD parent company is over VND 21.5 billion. In 2017, Antraco has set a profit target of VND 31 billion due to the fierce competition of quarry mining.
The Vinataxi Joint Venture, in which TCD owns 30% of its capital, together with its partner, Comfort Delgro, is planning to increase the number of cars from 500 to 560 by the end of 2017. This year, Vinataxi expects to maintain profit of VND 12, 5 billion.
Investment in real estate projects is an activity to bring stable revenue and profit for TCD in the future. However, TCD will transfer partly to focus on the most effective projects. Specifically, the Cu Chi Trade Center project is in the course of completion of legal procedures to seek partners for cooperation, or transfer.
The two key projects are Bamboo Prince Court Building at 89 Cach Mang Thang Tam Street in Ho Chi Minh City, which is expected to complete procedures in 2017 to begin construction in 2018 and proposal of the investment project of social housing at Ben Luc. This project has a scale of 2,500 social houses and 250 commercial townhouses with total expected investment of VND 980 billion VND, which will be a profitable project for TCD in 2018.
After a period of comprehensive restructuring, TCD is strong enough to accelerate the development of its business fields, with the goal of “Constantly creating outstanding value for shareholders, employees and society.”