VnDirect: Report after visiting and meeting with BCG

(VnDirect) On July 6, we visited BCG's real estate projects in Hoi An and met with businesses.

BCG Energy recorded 5T22 power output of 255 million kWh, up 15% svck.

Enterprises are actively preparing for Khai Long wind power phase 1 (100MW), Dong Thanh phase 1 (80MW) while waiting for new policies.
According to the actual survey, we assess that the business is implementing the Malibu Hoi An and Hoi An D'Or projects on schedule, expected to contribute 85% of BCG's real estate revenue in 2022.

Energy segment: 5M22 business results and project preparation are both very positive

Currently, the enterprise owns a total 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 there
dominated by solar and wind power.
Power output of 5T22 reached 255 million kWh, an increase of 15% of svck, most of which came from solar power projects of enterprises.
About investment in solar power: Currently, Phu My solar power has completed the installation of 114MW phase 2, currently waiting for the policy to close the electricity.

For Redsun, Sunflower and Duc Hue, enterprises are actively negotiating to be included in the Power Plan 8.

Regarding investment in wind power segment: Khai Long Phase1 (100MW) and Dong Thanh Phase1 (80MW) projects have now completed the EPC contract and are preparing for the start of construction. The enterprise is confident that it will be the fastest mover when flexibly deploying related tasks such as EPC, applying for licenses, arranging capital while waiting for the new price policy for RE.

Regarding the situation of capital arrangement, in June/21, enterprises had access to two foreign banks to arrange capital. Besides, the business also has an additional capital of 2,500 billion from additional issuance, and currently has allocated about 1,800 billion to BCG Energy to implement the project. In addition, businesses are confident in their ability to access green capital (ESG), are currently working with USS, consulting and evaluating to ensure the project will meet the standards, attracting ESG capital flows in the future. future. About the IPO plan of BCG Energy: The company is expected to be able to complete the dossier and carry out the IPO by the end of this year, the parent company will hold no less than 51%.

Figure 1: List and progress of renewable energy projects of BCG

Real estate segment: We see that projects that realize profit in 2022 are currently being implemented on schedule.

Assessing the problem of policies and credit sources for the real estate sector that are facing difficulties, businesses shared that currently, the capital projects in progress have been arranged, however, for projects in In the future, it will still need to wait for policies to be issued to take the next steps. The company believes that the IPO of BCG Land will bring an additional source of capital for future projects. Progress of projects expected to record revenue in 2022:

Hoi An D'Or: Currently, the shophouse part is basically completed and sold out 100% of the basket, now only the final steps are left to complete the landscape and hand over this July and continue to complete. parts
Villa.

Malibu Hoi An: Businesses are accelerating the time to complete the landscape and hand over the condotel in Q3/22.
About the IPO progress of BCG Land: The company is completing the hard copy dossier and is expected to submit the IPO dossier in July, the listing time is expected to be at the end of Q3/22.

About the progress of Cat Trinh Industrial Park: Total investment is expected to be 182 million USD, total area is 368ha, enterprises expect Q3/22 to complete the legal part and start implementing the project.

We have field trips to key projects of BCG in Hoi An, which are expected to contribute the main revenue for the business in 2022 including Malibu Hoi An and Hoi An D'Or projects. We forecast the above two projects will close contributed about VND 4,300 billion, accounting for 85% of BCG's total real estate revenue in 2022.

Stock recommendation

OUTCOME Profitability of the stock from 15% or more
NEUTRAL Stock returns range from -10% to 15%
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Industry Recommendations

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