Transport and Industry Development Investment Joint Stock Company (Tracodi)

Which factor made Bamboo Capital reported the first 9 month profit increased by 23 times over the same period?


(Vietnamdaily) Bamboo Capital Joint Stock Company (HoSE: BCG) announced its business results in 9 months of 2019, with net sales increased by almost 13% over the same period, reached VND 942 billion. Gross profit also improved significantly, hit VND 179 billion.


In this period, Bamboo Capital’s financial revenue increased by 80%, peak at VND 231 billion, while its financial expenditure decreased to VND 129 billion. In addition, BCG’s subsidiaries and affiliates contributed around VND 33 billion profit in 9 months, a lot higher than only VND 5 million in the same period.

Finally, Bamboo achieved VND 117 billion in after-tax profit for the holding company, 23 times over the same period. On its own, the third quarter of 2019 produced nearly VND 49 billion in earnings, which also rised 24 times over the same timeframe of 2018.

At the end of September, Bamboo Capital’s cash and equivalent also increased sharply to VND 169 billion by 129% including Short-term receivables of VND 1,384 billion. Total assets increased to VND 6,362 billion by 17%. Unpaid profit after-tax amounted to VND 150 billion.


Currently, Bamboo Capital is developing a number of projects such as Malibu Hoi An (VND 2,200 billion total investment), King Crown Village Thao Dien (VND 1,500 billion total investment), Lavender Bay Resort Da Lat ( VND 750 billion total investment), solar power plant BCG-CME Long An 1 (VND 1,088 billion) and BCG-CME Long An 2 (VND 2,300 billion).

Bamboo Capital is witnessing 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.

According to KB Vietnam Securities, 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 company.

Specifically, Malibu Hoi An is expected to  gain VND 3.295 billion of revenue and VND 763 billion of gross profit, with a part of revenue and profit scheduled to be recognized in the fiscal year 2019.

King Crown Village Thao Dien is forecast to record VND 802 billion in revenue and VND 300 billion in gross profit. However, since BCG only holds 48.5% of total shares, the profit recorded for BCG will be approximately VND 145.5 billion.

Two solar power plants which are BCG-CME Long An 1 and 2 with total capacity of 40.6MW and 100.5MW, respectively, have started operating since June 2019. In 2020, Sunflower project will be constructed in the same area. These projects will contribute to BCG approximately VND 5 billion of profit in 2019 and VND 20 billion in 2020.

BCG is planing to complete a number of ongoing projects in the field of real estate and renewable energy, the company expects to reach VND 920 billion of gross profit in 2019 and 2020, excluding the profit from current business activities in manufacturing and construction.

Minh An

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