On the morning of April 26th, 2019, at the AGM of Investment and Development Joint Stock Company (Tracodi, HOSE: TCD), shareholders have approved the plan 2019 with net revenue of VND 1,053 billion, up 20% compared to 2018; after-tax profit of VND 87 billion, up by 6% compared to 2018; and dividend will be up to 20%.
TCD's AGM hold on the morning of April 26th, 2019
In general, infrastructure construction and real estate projects will contribute VND 436 billion, quarrying will contribute VND 320 billion, trading sector will contribute VND 285 billion, and labor export will contribute VND 12 billion in revenue.
For infrastructure construction sector, TCD will complete projects such as Malibu Resort, King Crown (Thao Dien) in 2019. In addition, TCD will continue to implement other projects invested by parent company Bamboo Capital (BCG) in Long An province such as DT 830C upgrade and expansion (BT project), infrastructure construction for Solar energy plant in Thanh Hoa, Casa Marina Resort (Phase 2) and Pegas (Nha Trang).
For commercial activities, TCD will look for new customers for its key products such as cassava starch; build and develop Dr.Nam coffee brand; exploit the advantages of Vinacafe Fertilizer JSC ...
For quarrying, the joint venture Antraco will continue to maintain the revenue growth rate based on the permitted quota and continue to contribute stable profit to TCD. In the meantime, targeting customers from key projects in Soc Trang (bridge building), An Giang (national highway 30 expansion, Trung Luong - My Thuan and My Thuan - Can Tho highways).
For labor export, Japan remains the key market. However, the Company also looks for opportunities to export labor to Germany and Europe ...
For the joint venture Vinataxi, TCD will divest to recover investment capital by seeking partners to transfer the capital contribution.
For the investment in the building project at 89 Cach Mang Thang Tam street, TCD has adjusted the scale of the project and the specific construction function. It will be BCG office building in the land of 1,048 m2. Total investment is expected to be VND 850 billion.
In 2018, TCD achieved more than VND 875 billion in revenue and VND 82 billion in profit after tax respectively, exceeding 9% of the plan. Thus, the Company proposed to shareholders to pay dividends with the rate of 15%, in which 10% in stock and 5% in cash.
Accordingly, TCD will issue more than 3.8 million shares to pay off 10% dividend; issuing up to 249,288 ESOP shares 2018 and up to 1 million ESOP 2019 shares (2.62%) in the second quarter of 2019.
VND 200 billion of convertible bonds will be issued
With Long-term plan up to 2022, TCD aims to achieve more than VND 2,000 billion in net revenue, VND 135 billion in profit after tax respectively, dividend to be paid out up to 25%.
TCD will issue 200,000 convertible bonds with par value of VND 1 million per bond, equivalent to VND 200 billion. The conversion price is estimated VND 15,000 per share.
In regards to the bond issuance, Mr. Nguyen Thanh Hung, General Director, said that as TCD is on the way to accelerate, so the Company will need a large capital for this process. Currently, the company’s owners' equity is only over VND 400 billion, the interest rate is high for working capital loan. So, the company can issue shares to gain financial resources. However, by this way it shall dilute stocks which shall affect shareholders' benefits, that is the reason why the company does not want to. Therefore, TCD has decided to issue convertible bonds to raise the needed funds. The bonds will be 3 years term, interest rate of below 6%, it will be more effective plan to solve issues of stock dilution.
With the 5 years plan from 2018-2023, with our plan to earn more than VND 2,000 billion in revenue and VND 150 billion in profit, the issuance of convertible bonds will be no longer a big concern and will not affect the EPS of the Company.
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