22 July 2022

• Overview
  Bamboo Capital is one of the leading multi-industry corporations in Vietnam with more than 30 subsidiaries and associates. BCG is on its way to become one of the leading renewable energy developers in Vietnam with large-scale projects such as Ca Mau 1,2&3, Tra Vinh 1&2 (wind energy), solar farms including Phu My, Long An. This area plays a strategic role in the future aside from other sustainable key sectors: production - agriculture, construction - trade, infrastructure - real estate. SBS rated BCG as Positive (read Recommendation for more details).
  
  Business highlights
  
  Business performance in the first quarter and the plan for 2022
  
  
• The revenue reached 1,252.9 billion, up 97.7% over the same period. After-tax profit reached 270.7 billion, this was a year-over-year increase of 129.5%. Profit mainly came from 3 main business segments: construction, real estate and renewable energy. In addition, revenue from financial investment reached 732 billion (year-over-year growth of 133.7%) mostly including stock investment and investment partnership.
• In 2022, BCG has set a target of 7,250 billion VND in total revenue, 2,200 billion VND in after-tax profit; a year-over-year increase 180% and 120% respectively. The dividend in 2021 was 10%. (5% was paid by cash; 5%, shares).
  
  Focusing more on Renewable Energy (solar and wind power
  
  
• Currently, the corporation runs a total capacity of 579MW of solar power. It is expected that the total capacity will increase by 229MW by 2023. By 2025, the total designed capacity of BCG will be approximately 1,249MW, in which solar power and wind power are the main contributors. Power output of 5T22 reached 255 million kWh, up 15% over the same period, most of which came from solar power.
• Currently, Phu My, a solar power project has been completed its phase 2 - 114MW. BCG is negotiating to include Redsun, Sunflower and Duc Hue in the national power development master plan for the period of 2021-2030, with a vision to 2045 (“Draft PDP8”). The EPC contracts have been signed for Khai Long Wind Power Project Phase1 (100MW) and Dong Thanh Phase1 (80MW) and these projects are about to get started.
  
  Residential and resort Real Estate
  
  
• Real estate: BCG Land is focusing more on on-going projects such as Casa Marina Mui Ne, Casa Marina Premium, Radisson Blu Hoi An, King Crown Village Thao Dien, Hoi An D'or, Amor Riverside Villa, King Crown Infinity
• BCG Land plans to earn VND 5,000 billion of revenue in 2022 and VND 1,400 billion in after-tax profit. We noticed that the projects bringing profit in this year are all on schedule.
  
  RECOMMENDATIONS:
  SBS's opinion: BCG is a rising star in real estate and renewable energy with many ambitious projects across Vietnam. The economy is recovering, along with the increasing popularity of renewable energy is an opportunity for businesses to make a breakthrough. However, at present, the difficulty in fund raising together with the relatively high level of debt has increased the cost. The market price of BCG on 22/07/2022 was VND 14,950, much lower than its target price, so SBS evaluated BCG at Attractive.
  
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