REVENUE 6,600 BILLION DOES BE THE MINIMUM THAT VIETTEL CONSTRUCTION COMPLETED IN 2021.
The AGM approved a business plan with revenue of 6,600 billion, up 3.4%, and profit after tax of 275.8 billion. The dividend rate is expected to pay at 10-20%. In recent years, Viettel Construction has consistently achieved impressive results, far exceeding the set plans, partly confirming its style. "talk less do More" from Viettel Construction.
Specifically, with the business plan in 2020, Viettel Construction has set a revenue of 6,000 billion VND, profit after tax of 199 billion VND. This is not a small revenue milestone between the time the global economy was affected by the Covid-19 epidemic and the recent storm and flood situation in Vietnam in 2020. However, Viettel Construction has quickly adapted and achieved revenue of 6,380 billion VND (106% of the plan), profit after tax is 274.2 billion VND (reaching 138% of the plan).
Previously, in 2019, Viettel Construction announced the post-tax profit after tax of VND 181 billion, an increase of 115% of the planned plan of VND 158 billion. In 2018, the Corporation also achieved an after-tax profit of 147 billion dongs, and the plan was 145 billion dongs (up 101%). It can be seen that Viettel Construction's revenue and profit after tax have tended to grow cross-year over the years.
Talking at the shareholder’s meeting, Mr. Pham Dinh Truong - General Director of Viettel Construction said that the revenue plan of 6,600 billion VND will be the minimum number that the Corporation will implement. Under the favorable conditions, the newly issued electricity price, the Covid-19 epidemic does not affect the Myanmar, Cambodia, and Vietnam markets where the Corporation is operating, the expected revenue result is likely to be. reaching the ideal threshold of 8,000 billion VND in 2021.
Mr. Pham Dinh Truong - General Director of Viettel Construction answered to Shareholders
AGM ADVERTISEMENT OF 2020 Dividend Payments WITH RATIO 39.5% (BEFORE 6/30/2021)
At the meeting, Viettel Construction approved the payment of dividends for 2020 at the rate of 39.5%, including a 10% cash dividend (1 share receives 1,000 VND) and a 29.5% dividend in shares. This is a higher dividend payout ratio than the plan approved at the 2020 shareholders meeting with only 26% (10% cash dividend and 16% stock dividend).
Accordingly, Viettel Construction also approved a plan to change the stock exchange on Ho Chi Minh City Stock Exchange (HoSE) in the period of 2021 - 2022. The listing of CTR on the HoSE is an opportunity to CTR promotes the image, brand, attract the partners and customers of the company, along with increased liquidity, creating favorable conditions for shareholders to trade stocks.
The meeting also approved the dismissal of Mr. Nguyen Dinh Chien - Chairman of the company's Board of Directors for the term 2020 - 2025. The replacement is Mr. Nguyen Thanh Nam. Mr. Nguyen Thanh Nam is currently the Deputy General Director of Viettel Group and used to hold the position of CEO of Mytel (Viettel brand in Myanmar).
Mr. Nguyen Thanh Nam - New Chairman of the Board of Directors of Viettel Construction
INVESTMENTS OF VND 2,000 BILLION IN INFRASTRUCTURE FOR LEASE, INCREASE OVER GROUP SALES
Answering questions from shareholders related to the cooperation with Fecon Group (code FCN), Mr. Pham Dinh Truong - General Director of Viettel Construction said there are 2 big areas that Viettel Construction can cooperate. Firstly, in the wind power sector, Fecon, with its foundation strength, can assist Viettel Construction in the construction of foundations for wind power projects.
The second is related to B2B construction development, which includes building villas and the company may associate with Fecon in the field of foundation construction. Third, Fecon is also boosting investment in industrial zone real estate and may hire Viettel Construction as a general contractor for implementation.
In 2021, Viettel Construction faces some difficulties from solar energy due to the lack of electricity price mechanism. However, a positive point is that many businesses and households still install it for use.
To compensate for the solar energy segment, Viettel Construction had a growth in revenue from the operation and operation segment (Solar care, Homecare). Besides, the construction segment also grew well thanks to the experience and strength that Viettel Construction owns.
Với lĩnh vực đầu tư hạ tầng cho thuê, năm 2021, Viettel Construction sẽ đầu tư khoảng 2.000 trạm BTS với tổng vốn đầu tư mảng này khoảng 2.000 tỷ đồng (bao gồm BTS, năng lượng mặt trời, DAS…).
Viettel Construction aims to increase the proportion of revenue outside the group. In 2020, the proportion of non-group revenue will only account for 18%, but this year, the target for non-group revenue will increase to over 20%.
According to the strategy until 2025, Viettel Construction's non-group revenue will increase to 30%, but if this year is over 20%, the company management expects that the proportion of non-group revenue until 2025 will be high.
DISCUSSION ISSUES UNDER THE AGM'S CONTENTS:
CTR635 SHAREHOLDERS:
Question 1: What is the best scenario for 2021?
Question 2: The company signed a strategy with Fecon, what is the reason for signing? Construction steel price increases by 15%. What contractual terms does the company have to minimize the risk of rising input prices?
Question 3: What plan do the integrated solutions segment in 2021 have to maintain growth?
Question 4: Does the rental infrastructure have a specific disbursement plan for the investment sector?
The Presidium answered questions of shareholders:
Question 1: The plan is being followed by the Board of Directors on the 2021-2025 strategy. In the best scenario, the revenue could reach 8,000 billion.
Question 2:
+ Fecon understands the ground and foundation, the upcoming company intends to deploy wind power and civil construction, so it wants to take advantage of Fecon. In addition, the two sides cooperate in the construction of real estate industrial zones.
+ Regarding the question of construction steel price: The company contract has a provision for the input price to rise to a high level, the contract price will be adjusted, in addition, the Company does not execute the construction of steel, but execute quickly. In batches, the risk of higher input prices should be reduced.
Question 3: Solar PV still generates revenue even though there is no new FIT unit price because the investor wants to reduce energy costs. In addition to energy, the integrated solutions with good growth of ICT, smart homes, solar care, and homecare will offset the lack of revenue from energy.
Question 4: Investing in infrastructure 2021 with a total capital of 2,000 billion: Investing 2,000 BTS stations; transmission and fiber optic and energy.
SHAREHOLDERS: DINH NGOC LINH - SHAREHOLDER CODE CTR0054
Question 1: As a result of the first quarter of 2021, the profit will increase 42%, but why the year plan is still going sideways?
Question 2: Time to pay dividends in 2020?
The Presidium answered:
Question 1: There are many business risk factors, so the Board of Directors sets a prudent year plan following the 2021-2025 strategy.
Question 2: Time to pay dividends in the second and third quarters of 2021.
SHAREHOLDERS: BUI XUAN HUNG - CODE OF SHAREHOLDER CTR0002
Question 1: Plan to transfer assets and infrastructure from Viettel to CTR?
Question 2: What is the gross profit margin for rental infrastructure? What is the number of carriers renting out CTR's infrastructure?
The Presidium answered:
Question 1: Currently there are legal problems, so the plan to transfer assets from Viettel to CTR will depend on the macro policy. With the 5G factor, the rental infrastructure segment will develop well with the Company investing in infrastructure on its own. The company will continue to pursue the purchase of Viettel's assets.
Question 2: The gross profit margin for a rental is 30%. Currently, there are mobifone renting the infrastructure of CTR. The current sharing rate is 1.1, coming up to 1.2 and 1.3.
SHAREHOLDER: QŨY DRAGON CAPITAL
Question 1: Impact from Myanmar market on O&M revenue?
Question 2: Where does the gross profit margin of the good construction segment come from?
Question 3: If solar power is reduced in output, what effect does CTR revenue have?
The Presidium answered:
Question 1: Revenue in the economic culture segment in Myanmar is not affected. However, the job implementation will be more difficult.
Question 2: Construction includes telecommunications construction and civil construction, with a good profit margin due to optimal cost from civil construction.
Question 3: The Corporation does not suffer a reduction in output from solar cell projects because it invested in batteries in 41 projects in 8 provinces.
SHAREHOLDERS: HUUYNH THANH MINH - CODE CTR0071 SHAREHOLDERS
Question 1: Position of CTR in Viettel Group?
Question 2: How is the cost of the station investment from 4G and 5G?
Question 3: What is the expected revenue by 2025?
The Presidium answered:
Question 1: CTR's position in Viettel is in the telecommunications sector.
Question 2: 5G investment rate is lower than 4G.
Question 3: Revenue to 2025 according to the strategy is 11,400 billion.
SHAREHOLDERS: TAT THU HUONG - SHAREHOLDER CODE CTR0023
Question 1: How much is the investment cost of the BTS station?
Question 2: The company plans to invest 2,000 billion to invest in 2021, is financial security guaranteed?
The Presidium answered:
Question 1: Station investment rate depends on station type (Macro, small cell, RRU…).
Question 2: The guaranteed financial situation for investment plan 2021. The company's debt to equity ratio will not exceed 3 times.