(BCG) On August 7, 2020, Bamboo Capital Group collaborated with Yuanta Securities Company to hold the “Investor Meeting” to update the Group’s Business results of quarter 2/2020 and the last 6 months plan of 2020.
In order to comply with Covid-19 prevention measures as well as ensure safety for investors, Bamboo Capital Group decided to organize meeting online and broadcast on Facebook fanpage.of the Group (Bamboo Capital) and fanpage of Yuanta Securities Company (Yuanta Securities Vietnam – YSVN).
Attending the Conference, Mr. Pham Minh Tuan – Vice Chairman and Chief Operating Officer – represented for the Group. The Conference also attracted a large number of investors, analysts, brokers from many securities companies.
BCG’s representatives speaking at the Investor Meeting
At the Conference, Mr. Tuan presented business results for the first 6 months of 2020, as well as the latest update of projects, information about business strategic plans and development potential of BCG stocks.
Specifically, for the first 6 months of 2020, BCG recorded an increase of 11.4% in net revenue to VND 522 billion. BCG’s after-tax profit reached VND19 billion, down 67% year-on-year due to the slowdown in sales of the real estate and construction segments affected by the impact of Covid-19. BCG expects these segments will bounce back in quarter 4/2020 when the vaccine for Covid-19 is successfully implemented around the world.
Notably, in the first 6 months of the year, Bamboo Capital Group made great breakthroughs in the Renewable Energy segment, as of June 30, 2020, Bamboo Capital’s asset scale reached more than VND 13,200 billion, up 81% compared to the beginning of the year. The main reason is due to the investments in the 330MW solar power project in Phu My, Binh Dinh with 6,000 billion CAPEX (expected to complete and generate electricity before December 31, 2020). Grade A King Grown Infinitive apartment complex project in Thu Duc Center with a scale of more than 120,000m2 of floor area and 3,000 billion VND CAPEX. This figure reflects the fact that in the first 6 months of the year, BCG continued to boost its business scale in potential real estate projects as well as the Group’s renewable energy core segment.
Speaking at the Conference, Mr. Pham Minh Tuan – Vice Chairman cum Chief Operating Officer of Bamboo Capital spoke that the Group owns a portfolio of wind power projects up to 652MW. Also, the Group plans to start the first project with a total capacity of 300MW in Ca Mau in 2020.
Mr. Tuan also assumed that wind power if compared to solar power is a longer-term with the larger investment. Also, the technology and construction progress are more complicated. BCG Energy (a subsidiary of Bamboo Capital) has built a team of staff with good technical skills in the field of project construction and implementation.
BCG’s representatives answering investors’ questions
Sharing with investors about the plan to pay dividends in cash at the rate of 12%/year, Mr. Tuan said that the story of dividend payment is always about the balance between shareholder interests and development strategy of the company; between mid term and long term.
“In previous years, we decided not to pay dividends because it was needed for reinvestment. From 2015 to the end of 2019, the Group has developed a huge number of projects yearly and been continually expanding its operation segments. In 2020, the BOD, after calculating the Malibu and King Crown projects will have a cash flow return in late 2020 and early 2021, we have obtained permission and approval to pay dividends at the AGM.
This is a matter of ensuring investor confidence and illustrating our business outlook. It shows when we are confident that we will have a steady cash flow that promises annual dividends for the coming years.” Mr. Tuan shared.
Through the Q&A section, investors were able to answer most of the questions related to the Group’s business, information on solar and real estate projects as well as the long-term growth potential of BCG stocks.
Over the last 2 years, BCG has successfully implemented several renewable energy and real estate projects such as: BCG-CME Long An 1 & 2 solar power plants in Long An with a total capacity of 140MW, Phu My solar power plant with a total capacity of 330MW which was just broken ground in quarter 2/2020; real estate projects such as Malibu Hoi An, King Crown Village Thao Dien, King Crown Infinitive Thu Duc. These projects are expected to bring significant profit for the Group from 2021.
With the potential of Vietnamese real estate and renewable energy markets in the upcoming years, BCG is currently planning to deploy new projects to capture the opportunities in these two areas. Particularly, in renewable energy segment, BCG Energy started to expand into the wind power sector with BCG Soc Trang Wind 50MW, Aurai Vung Tau 100MW and a Wind project in Ca Mau.