Investment thesis
Bamboo Capital is one of the leading multi-industry corporations in Vietnam with more than 30 member companies and associates. BCG is oriented to become one of the leading renewable energy developers in Vietnam with large-scale projects such as wind energy on the sea Ca Mau 1,2&3, Tra Vinh 1&2, Phu Quoc solar field. In the US, Long An, this is the field that plays a strategic role in the future on the basis of sustainable development along with other key fields: production - agriculture, construction - trade, infrastructure. - real estate. SBS rated BCG as Positive (for details, see Recommendations).
Business highlights
Business activities in the first quarter of 2022 and full year plan
Q1.2022 revenue reached 1,252.9 billion, up 97.7% over the same period. EAT reached 270.7 billion, up 129.5% compared to the same period last year. Profits mainly come from 3 main business segments: construction, real estate and renewable energy. In addition, revenue from financial activities reached 732 billion, up 133.7% over the same period, mainly from securities investment and investment cooperation.
In 2022, BCG has set a plan of 7,250 billion VND in total revenue, 2,200 billion VND in profit after tax; increase 180% and 120% respectively compared to 2021. The dividend in 2021 is paid at the rate of 10%, consisting of 5% cash and 5% shares.
Pushing into Renewable Energy (solar and wind power)
Currently, the enterprise owns a total source capacity of 579MW of solar power. It is expected that the total capacity will increase by 229MW in 2023. By 2025, the total designed capacity of BCG will be about 1,249MW; in which solar power and wind power are the main ones. Power output in 5T22 reached 255 million kWh, up 15% over the same period, most of which came from solar power projects of enterprises.
Currently, Phu My solar power has completed the installation of 114MW phase 2. For Redsun, Sunflower and Duc Hue, the enterprise is actively negotiating to be included in the Power Plan 8. Khai Long Wind Power Project Phase1 (100MW) and Dong Thanh Phase1 (80MW) have now signed the EPC contract and are starting to build.
Real Estate Residential and resort
Real estate segment: BCG Land will focus on implementing existing projects such as Casa Marina Mui Ne, Casa Marina Premium, Radisson Blu Hoi An, King Crown Village Thao Dien, Hoi An D'or, Amor Riverside Villa, King Crown Infinity
BCG Land plans to achieve revenue of VND 5,000 billion in 2022 and VND 1,400 billion in EAT. We found
Projects that recognize profits in 2022 are currently being implemented on schedule.
RECOMMENDATIONS:
SBS commented: BCG is a company with a very fast growth rate in the field of real estate construction and renewable energy with many large projects across the country. The economy is recovering, along with the orientation to develop Vietnam's energy industry in the direction of renewable energy will be an opportunity for businesses to make a breakthrough. However, at present, the quiet deposit mobilization channel along with high debt has increased the cost burden. The reference price of BCG on 22/07/2022 is 14,950 which is much lower than the target price, so SBS evaluates BCG as Attractive.
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