Transport and Industry Development Investment Joint Stock Company (Tracodi)

Bamboo Capital Group: Solid foundation for sustainable development


(ĐTCK) After the comprehensive restructuring, Bamboo Capital Joint Stock Company (BCG) has shifted its focus to real estate and renewable energy sectors, which has enabled BCG to achieve positive cash flow change.

By the end of Q3/2019, BCG achieved a net revenue of VND 244.7 billion, of which the solar power plant 40MW project was officially launched and started generating income.

In addition, a lot of real estate projects which have been deployed such as Radisson Blu Hoi An Resort in Quang Nam and King Crown Village at Thao Dien (District 2, Ho Chi Minh City) are going into final stages.

Furthermore, BCG also transferred shares from new projects with relatively high price. Thus, the Holdings’ gross profit for Q3/2019 increased by 2,406% over the same period in 2018, reached over VND 14 billion and generated a sudden increase in its financial revenues.

Especially in Q3/2019, consolidated net profit increase by 1,000% over the same period, reached almost VND 52 billion. In the first 9 months, the net revenue and profit of BCG amounted to VND 941,7 billion and VND 128,45 billion, respectively.

In a speech to the Securities Investment Review reporter, Mr. Pham Minh Tuan, BCG’s Deputy General Director, shared that in renewable energy sector, two solar power plants which are BCG-CME Long An 1 and 2 with the total capacity of 40,6 MWp and 100,5 MWp, respectively, had completed construction and COD by June 2019 partially, the remainder of which would be completed by the end of 2019.

Besides, BCG is continuing to investing in other solar projects such as 2 other projects also in Thanh Hoa, Long An with the total capacity of 100 MWp, one 50 MWp project at Krong Buk Lake, Daklak and 3 other projects in Ben Tre with an expected overall capacity of 500 MWp and a 45 MWp wind power project in Soc Trang.

The Group aims to reach the total generating capacity of 400 MWp in the period of 2019-2020 and 1,000 MWp by 2023.

BCG has basically completed procedures to issue 900,000 convertible bonds in order to raise fund for major projects, with a sharing conversion taking place after 1 year.

BCG is in negotiation with an international partner. Bondholders shall be entitled to exchange up to 50% of bonds possessed during the first conversion period and the other 50% during the subsequent conversion period (one year after the first conversion date).

In these conditions, the two sides have pledged themselves to mutual support obligations for long-term purposes. The fund is to invest directly in real estate and renewable energy projects and to provide working capital to its subsidiaries.

“BCG will continue to cooperating with large international enterprises to take advantage and inquire their technology, brand name and capital flow. Currently, the Holdings also receives a lot of support from global shareholding firms including Hanhwa Energy in which they are joining hands in developing solar energy projects.”Mr. Tuan said.

In mid-term, real estate and renewable energy segments are being planned to hold a majority of BCG’s revenue and profit structure since the period of 2019-2021.

KB Vietnam Securities Company (KBSV) evaluated the opportunity to invest in BCG securities and reported that BCG is witnessing a significant change in strategy including the narrowing of low effective businesses such as automobiles, distribution trade and transforming to key areas of high profitability which are real estate and renewable energy.

It is estimated that when the above-mentioned key projects of Bamboo Capital are officially launched in the period of 2019-2020, they will generate positive revenue and profit for the Group.

In fact, BCG anticipated that net profit will hit VND 826,5 billion by 2023.

Particularly in 2019, BCG is expected to record large cash flows and reach nearly VND 312 billion in net profit.


According to BCG’s BOD, renewable energy segment plays an important role in adding significant value to the Holdings in long term with stable income and a high-profit margin.