According to the published business results report in 2019, Viettel Construction achieved revenue of nearly VND 5,100 billion and profit after tax of VND 181 billion, outperforming its peers on the stock exchange.
Viettel Construction owns an abundant workforce, covering 63 provinces and cities up to 10,000 people. This is a key factor that helps Viettel Construction develop traditional businesses such as construction, installation, operation and exploitation to expand into new business areas such as Infrastructure for lease (TowerCo), Integrated Solutions.
Sharing telecommunications infrastructure, TowerCo potential growth in the long term
The trend of sharing telecommunications infrastructure is increasingly popular in the world. Many carriers tend to reduce ownership of passive fixed assets such as antenna columns, stations, ... (sold out or sold-leased - "Sale-and Leaseback" to TowerCo) to improve financial conditions. and focus on core business.
According to TowerExchange, TowerCo in the world owns up to 84% of BTS stations in the world with an average EBITDA profit margin of 50-70%, 2-3 times higher than EBITDA profit margin of telecom operators (20 - 30%). TowerCo in the US such as American Tower Co, SBA Communications, Crown Castle International Corp ... are valued at quite high with P / E dozens of times, belonging to the group of industries with the highest valuation in the market.
In Vietnam, the TowerCo market is considered to be rich in potential due to the low penetration density of TowerCo, only 12% of BTS stations in Vietnam are owned by TowerCo and the market is fragmented, there is no company. dominate the market.
In addition, the Ministry of Information and Communications (TTTT) also launched many policies to promote sharing of infrastructure among carriers such as Directive 52 / CT-BTTT dated 11/11/2019 on enhancing sharing, shared use of passive telecommunications infrastructure; arranging for operators Viettel, VNPT, MobiFone, Gtel to sign agreements to share 1,200 stations together on 10/06/2020. According to many experts, sharing telecommunications infrastructure will help operators reduce investment costs, increase coverage, and bring benefits to both businesses and users.
It can be said that the development of TowerCo is currently considered an inevitable trend because carriers are gradually giving up owning fixed assets to focus on investing in core activities. In the long term, development of rental infrastructure is a suitable direction to develop telecommunications infrastructure, 4G, 5G, IoT in Vietnam. However, the investment process will take quite a long time and as scheduled to 2025, Viettel Construction will become the No. 1 TowerCo in Vietnam.
Integrated solutions and strategic spearheads in the 2021 - 2025 period
A new business area of Viettel Construction in recent years is integrated solutions, focusing on two areas of energy and electromechanical power. The Company's products include Solar energy solutions, renewable energy; Electromechanical solutions (electronics, civil electricity ...); ICT solutions (wifi, camera ...); Smart solutions (Smartcity, ...).
For the energy sector, according to the Energy Institute (Ministry of Industry and Trade), in the period 2020 - 2025, the total solar power capacity will grow at an average rate of 9.5% / year, higher than the industry growth rate. is 6.8%. The development of solar power in Vietnam stems from a forecast of a shortage of electricity from 1.5 to 5 billion kWh per year in the period 2020-2023 and at the same time the Government plans to reduce the capacity of other power sources such as hydropower. electricity (due to lack of location to build the plant), thermal power (due to lack of supply of input materials, coal).
Thanks to the large human resources in the country and the leading technical background in Vietnam, Viettel Construction determines that the provision of rooftop solar PV solutions is a strategic spearhead in the period. 2021 - 2025, to focus on customers of factories, export processing zones, industrial parks, agricultural farms, and individual customers with electricity consumption of 1.2 million VND / month or more.
Meanwhile, the electromechanical market (M&E) is a promising industry in Vietnam due to high urbanization, real estate and construction growth. In a large civil engineering project, the M&E part usually accounts for about 30-50% of the total volume.
Viettel Construction determines this is a suitable field to take advantage of the strength of human resources experienced in the construction and installation of construction works and aim to provide electromechanical services to projects that Viettel Construction participates in construction. construction by investors such as FLC, VinGroup, SunGroup, Flamingo, individual customers in need.
Another opportunity for Viettel Construction is the Government's promotion of national digital transformation, building a digital government, a digital economy and a digital society; develop smart, green, environmentally friendly cities, adapt to climate change, focus on improving urban quality in the 5-year socio-economic development plan for the period 2021 - 2025. This creates opportunities for the company to expand business of smart energy solutions, electromechanical solutions for businesses and households.
Viettel Construction aims to be among the top 5 intelligent green energy solution providers, and top 10 leading electromechanical service providers in Vietnam by 2025.
With strong growth potentials from Integrated Solutions and TowerCo, Viettel Construction sets a target by 2025, the company's revenue will reach 10,000-11,400 billion VND, pre-tax profit is 300-500 billion VND.
Source: tinnhanhchungkhoan.vn