Transport and Industry Development Investment JSC (Tracodi, HoSE: TCD), a subsidiary of Bamboo Capital Group, has just announced its financial reports for the first quarter of 2022. Tracodi revenue reached VND VND525 billion, after-tax profit reached VND111 billion, an increase of 42.39% and 60.7% respectively over the same period last year.
Tracodi’s expenses in terms of sales, administration, and finance were almost the same as last year. Profit mainly came from construction and installation activities as a contractor and its joint ventures.
TCD expected a revenue of and profit after tax of VND507,43 billion in 2022, up 42.39% and 51.19% from the 2021 result, respectively.
Cash and cash equivalents reached VND175 billion at the end of Q1, while short-term financial investments were VND980 billion. Short-term account receivables totaled VND2,666 billion, primarily from recently sold real estate projects. Inventory was VND467 billion.
Tracodi's equity had nearly doubled over the period, owing to the issuance of shares to existing shareholders in early 2022. Meanwhile, undistributed after-tax profit rose by VND100 billion to VND449 billion over the period. Earnings per share were VND599.
The firm’s liabilities reached VND4,785 billion at the end of March, up 5% from the previous quarter. Debt-to-equity ratio was two, a fairly lower-leverage ratio among listed construction and installation companies.
TCD’s current ratio exceeds 1.28, indicating improved solvency with almost no financial risks. The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.
An artist’s impression of the King Crown Infinity project. Photo courtesy of BCG.
The company timely handed over components of important projects like D'or Hoi An and King Crown Infinity to their investors. The developments aim to address the surging demand for high-end real estate products in the post-pandemic "new normal".
In 2022, Tracodi plans to continue promoting activities in two pillars, including construction and quarrying, especially with a strong shift to transport infrastructure to leverage the government's focus on public investment.
TCD's backlog value has reached almost VND8,500 billion, assuring its income for at least the next two years. It was awarded the VND406 billion Phan Thiet airport taxiway construction contract at the end of 2021, a public investment project on which it will focus in the first half of 2022.
At Tracodi’s recent general meeting, shareholders approved the merger and acquisition (M&A) plan of Bang Duong E&C JSC, which specializes in construction of transport infrastructure projects. They also voted for proceeding the M&A of a new quarry in Binh Thuan province, with a scale of 18.5 hectares, reserves of over 13 million cubic meters, and mining time to 2036. TCD planned to cooperate with Cat Trinh Industrial Area BCG JSC to implement the Cat Trinh Industrial Park project.
Regarding transport infrastructure, Tracodi planned to invest VND 4,700 billion in the north-south axis in Soc Trang province. The company also proposed VND2,000 billion investment in the upgrade and expansion of provincial Road 934B that connects Soc Trang with Tran De seaport.
It intends to strengthen its financial capacity in Q2 by selling several of its investments to recover capital and fund its core business activities of construction and installation.
"Tracodi will record a surge in additional profits in the second quarter besides its core businesses," an executive of Tracodi told the shareholder meeting.