FLC Group Aims at Pre-tax Profit of 1.23 Trillion Dong This Year

FLC Group Aims at Pre-tax Profit of 1.23 Trillion Dong This Year

Thứ Hai, 24/04/2017, 17:29

At the annual general meeting (AGM) on April 24, FLC Group’s shareholders approved a plan to earn a pre-tax profit of 1.23 trillion dong ($54.2 million) on revenue of 13 trillion dong ($572.7 million) this year. All other plans were also approved.

Major achievements in 2016

FLC Group had a successful year 2016 when its revenue from the real estate business reached 5.87 trillion dong ($258.6 million).

Amid the anemic growth of the local real estate market, FLC emerged as a bright spot with a large number of projects coming into operation, such as the 5-star FLC Quy Nhon resort complex, the international-standard hubway chain under the coastal tourism space project on the east of Ho Xuan Huong Street (Sam Son town), the first of its kind in Vietnam.

In addition, FLC proceeded with other sizable property projects including Phase 2 of the FLC Sam Son ecotourism township, comprising of the 15-storey FLC Grand Hotel, high-end entertainment compound, and nearly 700 shophouses; high-end ecotourism and entertainment complexes in Vinh Phuc, Quang Binh, Ha Long (Quang Ninh), and Do Son (Hai Phong).

In the residential segment, the group launched housing projects such as FLC Complex 36 Pham Hung, FLC Twin Towers 265 Cau Giay.

On the stock market, FLC is one of the most liquid tickers. The group raised 1.81 trillion dong from share issuances to existing shareholders, increasing its registered capital to 6.38 trillion dong on August 19, 2016.

Shareholders voting to ratify the meeting’s agenda.

Upbeat business results

Thanks to fast construction and high quality, FLC strengthened its brand name and foothold in the market.

In 2016, the group posted consolidated revenue of 6.66 trillion dong, representing an increase of 11% year-on-year, and a pre-tax profit of 1.33 trillion dong, up 15.4%. It contributed 361 billion dong to the state budget.

As of December 31, 2016, FLC saw it total assets up 80% year-on-year to 17.91 trillion dong while its owner’s equity was 8.4 trillion dong.

With abovementioned results, the group plans to pay a 10% dividend, comprising 3% of par value in cash and 7% in shares.

“From 2017 onwards, dividends will be higher year after year,” said FLC Group Chairman Trinh Van Quyet.

Shareholders vote on reports, proposals.

Fast Revenue Growth ahead

According to the approved plan, FLC’s revenue will nearly double year-on-year to 13 trillion dong in 2017 while its pre-tax profit is aimed at 1.23 trillion dong.

To make the target achievable, the group will accelerate the implementation of its projects and put into operations a number of properties such as FLC Ha Long resort complex, Ha Long Star golf course; the high-end FLC Quang Binh resort and entertainment complex; and FLC Do Son golf, international convention center, resort and entertainment complex.

It will also carry out residential projects in Hanoi, Thanh Hoa as well as industrial parks in Thanh Hoa and Vinh Phuc provinces.

Addressing the AGM, FLC General Director Le Thanh Vinh said through its projects, the group has contributed greatly to social development.

“FLC’s projects have made positive economic and social contributions to localities. With at least one project going operational each year, FLC creates 1,000 to 2,000 new jobs, an achievement that few companies can make.

Achievements have cemented and strengthened FLC’s credibility over the past years. A large number of international institutions have approached and proposed providing funding for FLC at reasonable costs,” Vinh said.

Cable car to Son Doong cave

Asked about the speculation on construction of a cable car to the Son Dong cave in Quang Binh province, FLC Chairman Trinh Van Quyet affirmed that FLC has been studying and exploring a project to construct a cable car to the cave at the provincial government’s call.

Due to difficult access, just 20 explorers can go into the cave per day. “Quang Binh could not tap effectively the Son Doong cave without a better access. How beautiful the diamond might be, no one can see it if it remains lying in the sea,” Quyet noted.

FLC Group Chairman Trinh Van Quyet answers questions taken from shareholders.

Even if FLC is allowed to build the cable car, the facility will not go through the entrance to the cave. The last stop will be several kilometers away from the entrance, Quyet stressed.

“Only when permission is granted and all papers are completed will FLC invest [in the cable car project]. Otherwise, we will not invest in it,” the chairman asserted.

Possible merger between FLC and FLC Faros

Regarding low market prices of FLC Group’s shares, Quyet said the stock is undervalued.

The fall in FLC share prices can be attributed to shareholders massively selling or buying shares without caring about the company’s fundamentals, Quyet explained, recommending shareholders have confidence in the company’s value.

Quyet tipped that he will continue to buy in FLC shares this year. Further, he will hold negotiations with a number of funds, institutional investors who intend to make long-term investment in FLC shares so that major shareholders will together hold onto at least a 50% stake in the long run.

The chairman said FLC Group intends to merge with FLC Faros Construction JSC (ROS). The merger plan will be submitted for consideration at another extraordinary general meeting.

Casino project on Ngoc Vung Island

Recognizing huge potential, FLC will continue to invest in Quang Ninh province, including a 60-storey tower.

FLC is asking for permission from the Quang Ninh government to build a casino on the Ngoc Vung Island in the Van Don Special Economic Zone before submitting the project to the Government, Quyet said.

“FLC was initially assigned by the Quang Ninh People’s Committee to be the investor of this project. With an aim to share the opportunity with our trusted partner, we have suggested FLC Faros Van Don Investment and Development Company, wholly owned by FLC Faros, be the investor of this project,” he added.

“As a listed company, FLC Faros will disclose the information to the public and market regulators in compliance with the law,” he said.


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