Monday, July 13 2020

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‘Prudent’ Tracodi sets modest financial targets for this year

Update: June, 22/2020 - 08:00

 

The Tracodi annual general meeting in HCM City on Saturday approves the annual statement for 2019, a number of business targets for this year, profit distribution plans and other important proposals. — VNS Photo

 HCM CITY — The Transport and Industry Development Investment Joint Stock Company (Tracodi) targets revenues of VNĐ1.92 trillion (US$82.6 million) and after-tax profits of VNĐ101 billion ($4.34 million) in 2020, a year-on-year increase of 13.1 per cent and 6.7 per cent.

The targets were approved at its annual general meeting in HCM City on June 20.

In its revenue structure, infrastructure and property construction is expected to account for the largest share of some VNĐ756.4 billion, an increase of 4.6 per cent over 2019.

Its stone quarrying operations through the Antraco joint venture is expected to contribute VNĐ400.5 billion, with the rest coming from trading, starch production, labour export and training and others.

General director Nguyễn Thanh Hùng said the company would focus on its core business activities of infrastructure construction, export trade, and labour export this year.

In the construction sector, it would focus on completing construction of the Malibu Resort and King Crown- Thảo Điền, solar power projects and rooftop solar and new projects such as Amor Garden, Casa 2, and Lavender, he said.

In the trading sector, it would set up the Tracodi Trading & Consulting JSC to actively boost exports of key products such as modified starch and outdoor furniture, and build and develop the Dr Nam coffee brand, he said.

The passenger transport business, where it operates Vinataxi Company, would continue to see a difficult year due to the impact of the Covid-19 pandemic, he warned. So, in addition to the traditional taxi transport business, Vinataxi also planned to enter the fields of motor vehicle assessment and install rooftop power, he said.

The financial targets are based on the impressive results the company achieved last year when profits and revenues were 61.5 per cent and 12.1 per cent higher than the targets at VNĐ1.7 trillion ($76.19 million) and VNĐ121.45  billion ($5.2 million).

The meeting approved several other proposals, including a 16 per cent dividend for 2019, 5 per cent in cash and 11 per cent in shares, and 10-15 per cent for 2020.

Replying to shareholders’ questions about the impact of the pandemic on the company’s business operations and its ability to realize the 2020 targets, Nguyễn Hồ Nam, Tracodi chairman, said the targets, despite being higher than last year’s, were modest and the company is fully capable.

It is a "prudent" plan that takes into account the difficulties caused by Covid-19, according to Nam. — VNS

 

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