Bamboo Capital JSC
Recommendation: BUY
Close price (VND): 12,350
Target Price (VND): 18,293
Upside: +48.12%
Sector: Specialty Finance (ICB: L4)
BCG’s earning update Q1/2021
BCG’s Q1/2021 net revenue rose 65% YoY to VND634bn, NPAT-MI increased significantly 9,021% YoY to VND118bn. Revenue grew strongly based on: (1) Handing over 5 villas of King Crown Infinity project; (2) 2 solar power plants: VNECO in Vinh Long (49 MWp) and Phu My Phase1 in Binh Dinh (214 MWp) started generating electricity in Q1/2021. Gross profit margin improved strongly to 32% from 20% in Q1/2021 thanks to the high gross profit margin of the real estate and the renewable energy sector.
Interest expenses increased by 207% to VND135bn as the company increased debt and issuing bonds to finance for renewable energy projects. Meanwhile, financial income increased strongly 497% YoY thanks to the recognition of interest from trading cooperation contracts and profit from investment in stocks and bonds.
Update on ongoing projects
Real Estate Projects:
Radisson Blu Hoi An: The project has completed the basic construction. Due to the impact of the Covid-19 pandemic, the sale of the remaining products as well as the handover to the customers have been delayed. BCG intends to open the remaining products for sale in June and start the handover in December of this year. The remaining project has about 123 condotels and 51 villas.
King Crown Village: The project has handed over 10 of 17 villas and 5 villas has been recorded in revenue in Q1/2021, the handover of all of villas will be completed this year. Phase 2 of the project (commercial complex) is in legal procuredure completion stage.
King Crown Infinity: 160 apartments were sold in the first sale. BCG will open the next sale in 2021.
Hoian d’Or: The project has a scale of 24.4 hectares in Hoi An, Quang Nam and is designed as a resort complex with components such as 5-star hotel, resort villa, shophouse and condotel with a total estimated investment of VND2,330bn . BCG plans to open for sale the first products of Hoian d’Or in 2021. The groundbreaking ceremony of the project has just been taken place on April 18, 2021.
Amor Garden: This project is expected to be transferred in Q1/2021, the profit by the transfer is about VND 150 bn.
Amor Riverside Villa Project
Renewable Energy (RE) projects:
Two solar power plants, VNECO Vinh Long and Phu My Phase 1, have been operating since the beginning of this year. BCG is implementing the rest of the Phu My project with the capacity of 116 MWp. In addition, BCG also continues to implement a number of rooftop solar power projects.
VNECO Vinh Long Project.
See full report via this link: Here
Yuanta Securities Vietnam