Although the May 2024 offering did not attract any interested investors, the State Capital Investment Corporation (SCIC) continued to offer the entire lot of shares at JIC.CO at a price equivalent to VND 72,123/share.
Investor of many projects in Can Tho
SCIC has just auctioned 864,942 shares of Can Tho City Investment and Construction Joint Stock Company (JIC.CO), equivalent to 41.51% of charter capital. The starting price for the entire lot of shares is 62.39 billion VND, equivalent to 72,132 VND/share.
The auction is scheduled to take place on July 17, if conditions are met. Previously, in May 2024, this auction could not be held due to a lack of interested investors.
JIC.CO is known as a joint stock company converted from a state-owned enterprise with a foundation of more than 30 years of operation in the construction sector. JIC.CO's business activities focus mainly on the construction of civil engineering works (industrial works, irrigation works, culverts, dams, dredging canals); construction of civil works; construction of public works...
In addition, JIC.CO also operates in the real estate business. The company is implementing the JIC.CO Residential Area and Office Project at 469A, Cach Mang Thang Tam Street, An Thoi Ward (Binh Thuy District, Can Tho City). At the same time, the company has completed 3 real estate business projects: Residential and Resettlement Area Project in Ward 3, Vi Thanh Town (now Vi Thanh City, Hau Giang Province); Project to Renovate, Upgrade and Expand the Commercial Center of Vinh Thuan Tay Commune (Vi Thuy District, Hau Giang Province); Residential and Resettlement Area Project of Vinh Thanh District Administrative Center (Can Tho City).
The Company is currently managing and using 20 plots of land in Can Tho City, with a total area of 1,495.95 m2. These are all urban residential land with long-term use purposes belonging to the JIC.CO Housing and Office Project. The policy of this project is to arrange accommodation for JIC.CO staff and workers and is not for business purposes. This project was implemented before JIC.CO was equitized, and is still facing problems, the entire land has not been cleared and is awaiting the conclusion of the Inspection Team.
Regarding the shareholder structure, only SCIC is an institutional shareholder and holds the largest capital share at JIC.CO, the remaining 40 are individual shareholders. The three major shareholders (holding over 5% of charter capital) include Nguyen Diep Hoai Phong (14.14%), member of the Board of Directors and Deputy Director of Business; Vu Hong Ngoc (7.66%), member of the Board of Directors and Tran Van Tuong (5.83%).
Hidden potential
In addition to owning the right to use many plots of land in Can Tho, published information shows that JIC.CO's business activities in recent years have been quite stable.
As of the end of 2023, the Company had total assets of VND 109.7 billion. Notably, the Company had VND 85 billion in short-term financial investments. It is known that these are short-term deposit contracts with terms from 6 months to 1 year that the Company deposited at banks. Maintaining a high proportion of short-term assets helps JIC.CO have a safe position to finance short-term debts.
Regarding capital, JIC.CO's equity as of December 31, 2023 reached VND 30.92 billion, of which the owner's equity remained unchanged during the 2021-2023 period, reaching VND 20.84 billion. As of December 31, 2023, the Company's undistributed profit after tax reached VND 4.6 billion.
Thus, JIC.CO has a total debt of approximately 79 billion VND, but it is recorded in the Bonus Fund, Welfare Fund, long-term debt... With a fairly "surplus" amount of cash, the Company does not use borrowed capital for operations, showing that the Company has the ability to be financially autonomous, which reduces the debt repayment pressure of JIC.CO compared to other businesses in the same industry.
In 2023, JIC.CO recorded VND46 billion in net revenue and VND3.1 billion in profit after tax, corresponding to a return on equity (ROE) of 9.95%. It is known that all revenue in 2023 comes from construction and installation activities.
JIC.CO said that net revenue in 2023 decreased by 25.2% compared to 2022 due to the frozen real estate market and difficulties in the construction industry. Cost of goods sold in previous years still accounted for the majority of net revenue, leading to low gross profit margin.
According to JIC.CO, in the next 3-5 years, public investment will be a field of special interest, with the Government focusing resources on infrastructure projects to stimulate growth and support economic recovery. This is a favorable factor for the Company's core activities.
In addition, JIC.CO is also proactive in the real estate sector, planning to participate in the auction of public land managed by the State in Can Tho City; approaching and searching for land lots and projects where investors are facing financial difficulties for mergers and acquisitions (M&A), building apartment buildings, commercial service areas, and offices for rent.
Source: https://baodautu.vn/scic-khong-ha-gia-khi-chao-ban-co-phan-tai-jicco-d219425.html
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