Wednesday, December 7 2016

VietNamNews

Cotecons targets $1b in 2017 earnings

Update: April, 14/2016 - 09:00
This year, it plans to earn revenue of VND16.5 trillion and profit after tax of VND800 billion.— Photo cafef.vn

HÀ NỘI Viet Nam News -—  Construction firm Cotecons JSC plans to earn US$1 billion next year, Chairman and CEO of the firm Nguyễn Bá Dương said at the annual shareholders meeting on Tuesday.

Based in HCM City, Cotecons is one of the leading constructors and designers of infrastructure and real estate projects in the country, with charter capital of VNĐ800 billion ($35.5 million).

In 2015, Cotecons achieved consolidated sales of VNĐ13.6 trillion and profit after tax of VNĐ666 billion, an increase of 79 per cent and 103 per cent over 2014, respectively. In the first quarter of 2016, the company achieved revenue growth of 97 per cent over the same period last year.

This year, it plans to earn revenue of VNĐ16.5 trillion and profit after tax of VNĐ800 billion.

Chairman Dương said the construction business was still at great risk due to volatilities in the real estate market. To ensure sustainable development in the future, the company must diversify into other sectors, he said.

The chairman set a target of getting 50 per cent of its business from the construction segment, with the remaining 50 per cent coming from other businesses. In 2017, Cotecons targets earning $1 billion in revenue through the expansion of the business via mergers and acquisitions and by building new subsidiaries.

To meet the target, Dương said, Cotecons would raise between VNĐ1.5 trillion and VNĐ1.8 trillion to expand production.

Under the plan, the company is expected to issue 16.4 million additional shares to existing shareholders, at a ratio of 3:1.

The firm plans to offer 14.43 million shares to its strategic partners at a price of at least as much as 80 per cent of the average reference price on the local market up to 20 days from the release of the offer.

The chairman also said the company would issue 2.4 million employee stock ownership plan (ESOP) shares, or 5 per cent of the stake, to the employees in the 2014 and 2015 period at VNĐ42,000 and VNĐ70,000 per share respectively.

This year, Cotecons will also pay a cash dividend rate of 55 per cent on par value, equivalent to VNĐ5,500 per share.

Currently, the company is working with major real estate developers, including Vingroup, TNT and Dai Quang Minh, which have handled projects worth trillions of dong, such as Masteri Thao Dien, Gold View, Goldmark City, Central Park and Vinhomes Times City Park Hill.

On Tuesday, Cotecons shares ended at VNĐ182,000 each on the HCM Stock Exchange. — VNS

 

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