Bamboo Capital Joint Stock : Tracodi's great growth potential

Transport Development and Investment Joint Stock Company (Tracodi, stock code TCD) is extending its growth momentum due to many favorable factors.

Motivation from the construction segment
The government is promoting the disbursement of public investment capital aggressively, which is beneficial for construction enterprises like Tracodi.

"Disbursement of public investment capital will increase in the second half of 2022 when the prices of many commodities show signs of peaking and the economic stimulus package of more than 113,000 billion dong begins to be disbursed from April", VNDirect Securities Company said. set expectations.

In fact, at the Ministry of Transport alone, in the first 5 months of 2022, public investment disbursement volume reached 15,080 billion VND, equivalent to 34.9% of the plan assigned for the whole year. For 12 sections of North-South Expressway, phase 2, the National Assembly has approved the entire project in the form of public investment. The government is urgently implementing relevant procedures so that the projects can start in 2022 and are expected to be completed in 2026.

Currently, Tracodi is restructuring its capital through the divestment of some investments. Specifically, in June, the Company transferred 60 million shares of BCG Land, reducing its ownership rate in this business from 22.5% to 9.4%. At the same time, the Company also sold all 700,000 shares, equivalent to 70% of the charter capital of Tracodi Labor Export Joint Stock Company. In this July, Tracodi transferred all 20 million shares in Indoba Trading Joint Stock Company (corresponding rate of 56.34%).

Focusing on core business, Tracodi sees a huge need for investment in residential real estate infrastructure in Vietnam. It is known that the value of Tracodi's unrealized construction and installation contract as of May 2022 is 8,500 billion VND.

Yuanta Securities Vietnam expects that Tracodi's construction revenue will grow strongly in the second quarter + third quarter of this year, mainly driven by real estate projects, especially the Malibu project. Hoi An, Hoian d'Or, King Crown Infinity. In addition, the divestment in the second quarter is expected to bring about a financial profit of about VND 300 billion for the Company.

Other favorable business segments
This year, Tracodi sets a strong business growth plan, with revenue of 4,431 billion dong, profit after tax reaching 507 billion dong, up 42% and 51% respectively compared to 2021. According to the company's leaders, activities The Company's business activities are going right.

The quarrying segment, which has provided a stable source of income for Tracodi for a long time, also has good growth potential thanks to the fact that the Antraco mine has been approved by the An Giang Provincial People's Committee for the second phase of survey with a reserve of 25 million m³. 10 - 15 years exploitation period. The construction segment is considered to have good income from large projects that the Company participates in such as King Crown City, King Crown Park, King Crown Infinity, BCG CME Long An 1-2-3 renewable energy project, project Khai Long 1-2-3 wind power project…

In the first quarter of 2022, Tracodi completed the issuance to existing shareholders to increase charter capital to VND 1,744 billion. The ambition of business leaders is to continue to increase capital to VND 5,156 billion by the end of 2022, through a private placement of 50 million shares, converting VND 250 billion of bonds into shares, and issuing 1.6 million ESOP shares, share dividend at the rate of 5% and offer to existing shareholders at the ratio of 1:1 (expected to be implemented in the third quarter). If the plan is successful, the Company will have a large capital to implement the strategy of deeply participating in the infrastructure construction - real estate value chain, improving production - business efficiency, extending the growth arm. . Consolidated profit in the first 6 months of 2022 is expected to reach more than VND 366 billion, reaching more than 72.1% of the plan.

On the stock exchange since 2017, Tracodi is known as a business that continuously improves its business performance. Over the past 4 years, the Company's net revenue has averaged over 60% growth. In particular, profit after tax in the last two years has grown dramatically. In 2021, the Company recorded a profit after tax of VND 335 billion, an increase of 129% compared to 2020.