BCG Land targets net revenue of VND2,190 billion

BCG Land submitted to the 2024 Shareholders' Meeting a business plan with the target of a sharp increase in net revenue to nearly VND 2,190 billion and after-tax profit of more than VND 424 billion, respectively 2.3 times and 3.1 times higher than in 2023.

On April 25, BCG Land Joint Stock Company (UPCoM: BCR) - a member company in charge of the real estate sector of Bamboo Capital Group (HoSE: BCG) held its 2024 annual general meeting of shareholders online.

BCG Land targets after-tax profit of more than VND 424 billion in 2024.

According to information from the congress, in 2023, the real estate market will face many difficulties, especially the access to credit loans will face many obstacles, forcing BCG Land to delay the progress of some key projects such as Hoian D'Or and Malibu Hoi An or King Crown Infinity. The market situation in 2023 is quite quiet, forcing BCG Land to flexibly change its business strategy from expansion to defense.

This resulted in the handover plan being affected and not achieving the set business plan. BCG Land's net revenue in 2023 decreased by nearly 17% compared to 2022, reaching only 26.4% of the annual plan.

Predicting that the real estate market will have a positive recovery in 2024, BCG Land submitted a business plan to the General Meeting of Shareholders with the target of a sharp increase in net revenue to nearly VND 2,190 billion and after-tax profit of more than VND 424 billion, respectively 2.3 times and 3.1 times higher than in 2023.

The majority of the revenue plan comes from the handover of the entire condotel and villa block of the Malibu Hoi An project; the remainder comes from the shophouse subdivision of the Hoian d'Or project, which will be completed, handed over and recorded in revenue in 2024. M&A activities will also be considered by BCG Land to maintain and create a strategic project portfolio.

The 2024 BCG Land General Meeting of Shareholders approved the resignation of Mr. Bui Thien Phuong Dong as a member of the Board of Directors. The meeting elected Mr. Nguyen Thanh Hung and Pham Dai Nghia as additional members of the Board of Directors for the 2022-2027 term. Mr. Vu Xuan Chien was elected as an independent member of the Board of Directors.

In addition to residential and resort real estate, in the coming time, BCG Land will continue to focus on research and development to produce industrial park real estate products and green urban services.

Accordingly, BCG Land will first complete the necessary legal procedures to deploy Cat Trinh industrial park in Binh Dinh (368 hectares); Dai Ngai industrial park in Soc Trang (phase 1: 195 hectares), continue to complete investment procedures at La Son urban service - industrial park in Thua Thien Hue (1,000 hectares) and Tran De urban service - industrial park project in Soc Trang (850 hectares).

With the portfolio of projects that have been and are being promoted, in the next 5 years, BCG Land's total land fund is expected to increase to about 5,080 hectares, of which the residential real estate group accounts for about 10%, the resort real estate group (20%), and satellite cities (70%).

With an average annual growth rate of 69%, BCG Land's revenue in the 2024 - 2028 period is estimated to increase from VND 2,190 billion to more than VND 17,546 billion; profit after tax is expected to reach more than VND 3,300 billion in 2028, corresponding to an average annual growth rate of 67%. Contributing to the revenue in this period, in addition to the projects Malibu Hoi An, Hoian d'Or, King Crown Infinity, there will be additional large-scale urban and resort real estate projects such as Casa Marina Premium, Casa Marina Mui Ne, Helios Village, King Crown City, ...

Notably, to implement the "ambitious" business plan, BCG Land's General Meeting of Shareholders approved the Company's capital increase plan. First, BCG Land will pay dividends in shares at a rate of 3%, equivalent to the expected number of shares issued of 13.8 million shares. After that, the Company plans to privately offer 280 million shares at a price of VND 10,000/share (61%). If the issuance is successful as planned, BCG Land's charter capital will increase from VND 4,600 billion to VND 7,538 billion.

Regarding the plan to offer 280 million individual shares, BCG Land's Board of Directors said that the Company is currently receiving much attention from domestic and foreign investors. BCG Land and these investors are having initial discussions and expect to soon have positive results to share with shareholders.

To implement large projects in its investment portfolio, BCG Land must implement a parallel capital increase plan. The company sets a roadmap and target for 2028, increasing its charter capital to about VND 16,000 billion, total equity to an estimated VND 26,000 billion and total assets to VND 57,000 billion. Thereby, BCG Land is among the Top 5 leading real estate developers in Vietnam.

Responding to shareholders about whether the Company is having difficulty paying interest and principal on bonds, BCG Land's Board of Directors said that with the orientation of controlling the financial structure at a safe threshold along with active support from the Bamboo Capital Group ecosystem, up to now, BCG Land still ensures interest payments to bondholders. Regarding the principal of the bonds, the payment period has been extended until 2026, so the Company is not under pressure to pay principal during this time.

On the same day as the General Meeting of Shareholders, BCG Land announced its financial report for the first quarter of 2024. The company's first quarter business results were quite positive. Specifically, in the first quarter of 2024, net revenue reached VND 209.9 billion, an increase of 22 times over the same period, thereby increasing the company's consolidated profit after tax to VND 20.2 billion, an increase of 40.6% over the same period. The company's business results improved significantly during the handover period of key projects. Specifically, in the first quarter, the company handed over 55 condotels and 1 villa from the Malibu Hoi An project.

In addition, BCG Land's total liabilities decreased by VND121.4 billion to VND5,981 billion, thereby causing the debt-to-equity ratio to continue to decrease to 1.01 times, lower than 1.03 times at the beginning of the year. This reflects that BCG Land's financial structure is increasingly safe and sustainable.

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