Yuanta Securities Vietnam has just issued a report recommending to buy TCD shares with a target price of VND 17,603, a profit margin of more than 32% compared to the closing price on July 30, 2021.
Transport and Industrial Development Investment Joint Stock Company (HOSE: TCD) has just announced its business results for the second quarter of 2021 with net revenue and profit after tax of parent company shareholders reaching VND 915 billion and VND 129 billion, respectively up 92.6% and 608% over the same period in 2020. In the first 6 months of 2021, the parent company's profit after tax reached VND 192 billion, up 627.3% over the same period, completing 100% of the forecast. profit of Yuanta Vietnam.
In the first 6 months of the year, Tracodi continued to sign contracts to build real estate projects with a total value of contracts of VND 1,696 billion.
Strong revenue growth was driven by revenue from construction activities, up 382% y/y, driven by revenue recognition from real estate projects, rooftop energy and solar power plants. In addition, stone mining revenue (Antraco) increased by 9% over the same period.
During the period, Tracodi continued to sign contracts to build real estate projects with the total value of contracts of VND 1,696 billion. As of the end of the second quarter of 2021, TCD's unrealized contract value was VND 5,122 billion according to Yuanta Vietnam's estimate. In addition, Tracodi is expected to sign construction contracts for real estate and renewable energy projects with a total estimated value of VND 955 billion.
In 2021, Tracodi is expected to achieve consolidated revenue of VND 3,203 billion, up 12.3%; pre-tax profit is more than 343 billion dong, and consolidated profit after tax is more than 280 billion dong, an increase of more than 91%. Expected dividend in 2021 is 14% with 8% cash and 6% stock.
Hoian d'Or project by Tracodi as the General Contractor has completed 99% of the foundation of 202 Shophouse apartments, the body and infrastructure will be constructed soon.
In the context of a strong outbreak of the Covid-19 pandemic and many difficulties in the epidemic center in Ho Chi Minh City, Tracodi still tried its best to maintain production and business activities and achieve stable revenue. In addition to outstanding business activities, Tracodi also actively participates in social activities, joining hands with the whole country to fight the Covid-19 epidemic.
Showing a sense of responsibility to the community, over the past time, Tracodi and its parent company, Bamboo Capital Group (BCG), have joined hands to organize many support programs up to 10 billion VND such as establishing a fleet of vehicles to support rolling stock. The Ministry of Health performs the task of taking samples for testing in Ho Chi Minh City, Long An and Tien Giang, providing materials for the Youth Union of Long An province to prevent the Covid-19 epidemic, donating a machine due to the temperature to Vung Tau province, and gave thousands of gifts to poor people in provinces such as Ho Chi Minh City, Long An, Binh Dinh, and Quang Ngai.
In addition, Tracodi's staff also donated a day's salary to donate more than 1 billion VND to the Vietnam Covid-19 Vaccine Fund.