Bamboo Capital plans to pay 8-10% dividend yield, aims high at joining the VN30 in the next two years

02/28/2022

Pham Minh Tuan, Vice Chairman of Bamboo Capital (HoSE: BCG), said that with the current business strategy and growth rate, BCG expects to join the VN30, which captures the performance of the top 30 largest stocks on the Ho Chi Minh and Hanoi stock exchanges in terms of market value and liquidity, in 2023 or 2024.

 

 

Looking back at the last turbulent year, Vice President of Bamboo Capital said that even though there were times, business was almost paralyzed, we had to halt most activities, business performance set a new record since establishment.

During the pandemic, BCG used capital to finance financial transactions, which is M&A, to maximize profit. Mr. Tuan explained that it is the best option amid the on-going pandemic which has slowed down real estate and renewable energy development.

Sharing about this year's business plan, Mr. Tuan said that BCG is still waiting for approval at the General Meeting of Shareholders (expected in early May), and he is confident that revenue and profit in 2022 will be much higher than what proposed at the General Meeting of Shareholders the prior year.

According to BCG Vice Chairman, the corporation is proposing a minimum dividend of 8 - 10%, including cash and shares. Currently, the Board of Directors is preparing a resolution to submit to the General Meeting of Shareholders in 2022.

In the real estate segment, BCG Land's is forecast to set a new record high revenue of about VND 4,800 - 5,000 billion, mainly from Malibu Hoian and Hoian d'Or projects. In addition, this year, BCG Land is also implementing at least 2 more projects, which are Phonix Mountain - 33 ha in Binh Dinh and Helios Village project - 20 ha in Dak Nong. In addition, it is expected that there are more projects in Quang Ngai  with the area of about 20 ha.

For the energy segment, Mr. Tuan said that BCG Energy is going to implement wind power projects in Tra Vinh and Ca Mau provinces in the second quarter,  they are expected to be partially completed this year and forecast to generate 550MW in 2023.

With BCG Energy capacity of implementing projects, Mr. Tuan believes that the ambitious plan of generating 2GW by 2025 is entirely feasible.

Regarding the insurance segment, after the M&A deal with AAA Assurance Corporation, Mr. Tuan said that in order to be listed on the stock market within the next three years, BCG has restructured it. Specifically, BCG has reopened a number of AAA branches in the north of Vietnam and submitted its proposal of increasing capital to 2,000 billion dong to the Ministry of Finance.

BCG set a series of significant milestones, restructuring AAA within the next three years; increasing AAA revenue to VND 500 billion in 2022, VND 1,000 billion in 2023 and VND 2,000 billion in 2024.
In the field of construction - infrastructure, Tracodi has just signed contracts, which are worth more than VND 400 billion, belong to the bidding package of Phan Thiet airport project. Vice President of BCG informed that from the beginning of the second quarter this year, Tracodi is carrying out this bidding package. In addition, Tracodi was also approved to build Dai Ngai bridge (connecting Tra Vinh - Soc Trang), which is over 30 kilometers.

In order to mobilize more resources to implement highway projects in the Mekong Delta, Tracodi is going to increase the capacity of Antraco quarry from 1.5 million cubic meter/year to 2 million cubic meter/year, and expand its reserve to 20 million cubic meter.

Sharing more about the strategic cooperation plan with Deo Ca Group, Mr. Tuan revealed that it is still under evaluation and no decisions have been made yet.

With its advantages and potentials, Mr. Pham Minh Tuan expects BCG to join the VN30, which captures the performance of the top 30 largest stocks on the Ho Chi Minh and Hanoi stock exchanges, in sometime between 2023 and 2024.