BCG Land (BCR) listed 460 million shares on UpCoM at VND12,000

On December 1, the Hanoi Stock Exchange (HNX) announced that 460 million shares of BCG Land Joint Stock Company, coded BCR, will officially be traded on UPCoM on December 8. The reference price on the first trading day is VND12,000, with a fluctuation range of +/- 40%. At this reference price, BCG Land's capitalization reaches VND5,520 billion.

BCG Land is a rare real estate company that has gone public in the context of the current difficult real estate market. The IPO process of BCG Land started in mid-2022, however, the fluctuations in the real estate market and the Vietnamese economy have caused the IPO process to take longer than planned.

BCG Land BCR Niem Yet 460 million shares listed on UPCOM with offering price of 12,000 shares image 1 — Malibu Hoi An resort real estate project in Dien Ban town, Quang Nam province developed by BCG Land

BCG Land is the real estate pillar of Bamboo Capital Group (HoSE: BCG). When it was first established in 2018, BCG Land had a charter capital of VND600 billion. After many capital increases, BCG Land's current charter capital is VND4,600 billion. Currently, BCG Land's largest shareholder is Bamboo Capital Group (HoSE: BCG), which owns 285.6 million BCR shares, accounting for 62.1% of charter capital. Transport and Industrial Development Investment Joint Stock Company (Tracodi, HoSE: TCD) - another member of Bamboo Capital Group, also owns more than 43.4 million BCR shares, accounting for 9.43% of BCG Land's charter capital.

BCG Land's main investment segments are residential real estate, urban areas, and resort real estate. Some typical projects that BCG Land has been implementing are Casa Marina Resort, Casa Marina Premium (Binh Dinh), Malibu Hoi An, Hoian d'Or (Quang Nam), King Crown Village, King Crown Infinity (Ho Chi Minh City). In the near future, BCG Land will research and develop more types of industrial real estate in potential provinces and cities.

According to the audited financial report for 2022, BCG Land's revenue reached VND 1,132 billion, profit after tax reached VND 316 billion. In the first 9 months of 2023, BCG Land's total net revenue reached VND 583 billion, profit after tax reached VND 136 billion.

As of the end of September 2023, BCG Land's total assets reached VND 12,537 billion, an increase of VND 980 billion compared to the beginning of this year. Of which, BCG Land's inventory value reached VND 3,505 billion, an increase of 35% compared to the beginning of the year, mainly including unfinished production and business costs at the Malibu Hoi An project with a value of VND 2,155 billion and the Hoian d'Or project with a value of VND 1,055 billion. Receivables accounted for 51% of total assets, reaching VND 6,458 billion, mainly from receivables from customers from handover activities, construction advances to construction contractors and short-term lending and business cooperation activities.

In terms of capital, as of the end of the third quarter of 2023, BCG Land's total liabilities reached VND 6,622 billion, a slight increase compared to the beginning of the year. In particular, BCG Land's short-term prepayments increased by 69% compared to the beginning of the year to VND 1,553 billion. This amount will be recorded as revenue when BCG Land completes and delivers real estate products to customers. The outstanding short-term and long-term loans are VND 3,173 billion, accounting for 48% of total liabilities. BCG Land demonstrates its ability to manage and control risks quite well, with the total debt to equity ratio currently at 1.12 times, which is a fairly safe leverage ratio in the real estate industry. In addition, the debt to equity ratio is quite low, only 0.54 times.

Before listing on UPCoM, BCG Land successfully extended the bond lot worth 2,500 billion with code BCLCH2124001. The above bond lot was issued by BCG Land on March 31, 2021, with a term of 36 months, and the maturity date is March 31, 2024. After the successful extension, the bond term was adjusted to 60 months, meaning the new maturity date of this bond lot will be March 31, 2026.

A secure financial structure, a safe debt-to-total-asset ratio, and no pressure to repay bonds in the next 2 years will be a good premise for BCG Land to expand its scale, complete project legal procedures, and increase development speed. With BCG Land's current total land fund of more than 500 hectares and a 5-year land fund development plan of up to 5,823 hectares, the successful listing of BCG Land on UPCoM marks a major milestone in BCG Land's development roadmap.

Source