General Director Pham Dinh Truong said that the leasing infrastructure segment that CTR is focusing on deploying has a profit margin of at least double the interest rate of bank loans, much better than service employment and will increase sharply year by year.
On June 6th, Viettel Construction Corporation took place the annual shareholder meeting of 2020 (stock code: CTR). The meeting approved important plans on production and business activities as well as new Board of Directors personnel.
Dividend payment in the first half of Q3, "exception" made ESOP with the rate of 2%
At the meeting, CTR approved the payment of dividends in 2019 at 26.05%, of which 10% is cash dividend and 16.05% is stock dividend. CTR will issue 9.74 million shares to pay dividends to existing shareholders, raising its chartered capital to VND 704.39 billion (70.44 million shares).
The CTR leader said that it will pay dividends in the third quarter and can do it in the first half of the quarter because the company's cash flow is very stable.
In addition, CTR also approved the issuance of shares under the employee choice program (ESOP) of 1.4 million shares (2% of charter capital after dividing the bonus shares to shareholders). The amount of ESOP shares will be restricted for transfer within 2 years.
According to CTR leaders, the issuance of this ESOP is based on the requirements of production and business in each period. From 2015 - 2019, CTR has transformed from a pure construction company to a company operating on 4 pillars (Construction, Integrated Solutions, Rental Infrastructure, Operations) and need more specialized, and loyal employees, so ESOP only takes place this year to encourage staff. CTR said the company will not let ESOP happen on a regular basis and only perform when really needed.
Q2 business results were not affected by Covid-19, confident to complete the 2020 plan
Regarding the business plan in 2020, CTR sets the target of consolidated revenue of VND 6,000 billion - an increase of 18% and an after-tax profit of VND 199 billion - an increase of 10% compared to the previous year. ROE is 21.8%, dividend payout ratio is expected to be 10% - 20%.
In order to carry out the proposed plan, CTR has raised important tasks in the 4 areas the Corporation is implementing.
In the field of Operation, CTR will officially receive in the markets of Cambodia and Myanmar. In addition, CTR will test operation in Laos and Peru markets.
In addition, CTR will promote operation business further from 2-3 network operators / Towerco / domestic service providers. In the overseas market, the CTR will be operating for the network operators / Towercos with sales of 3.6 billion VND in 2020.
In the field of construction, CTR will ensure the station broadcast progress, consolidate the network infrastructure for Viettel Networks, the Group's revenue of construction and installation reaches 523.8 billion VND. In addition, CTR will boost construction activities outside Viettel Group, focusing on civil constructions, transportation, technical infrastructure, and revenue of 336.4 billion VND.
In the field of Infrastructure investment for lease, CTR will deploy the works for rent (BTS, Smallcell, DAS, ducted, energy leasing ...) with an estimated revenue of 150.9 billion VND. In addition, the CTR will complete the test of 35 power stations and apply for approval of the Group's policy of testing the supply of power systems at 1,500 existing power stations of VTNet.
With Integrated solutions, CTR will deploy business of electro-mechanical services, energy, managed services to B2B, expected revenue of 333 billion VND.
Chairman Duong Quoc Chinh said the company did not suffer much from the Covid-19 epidemic and Q2 business results will continue to grow at a high level. Meanwhile, CEO Pham Dinh Truong is confident that Q2 as well as 2020 business results will be completed and shareholders can be assured.
Regarding the plan to reduce Viettel's ownership in CTR, the CTR management board said this was a major policy and was approved, but the detailed roadmap has not been announced at the meeting.
The leasing infrastructure has double profit margin of bank loans, not issuing capital increase from shareholders, ensuring ROE of over 20%
Talking more about business segments, General Director Pham Dinh Truong said that CTR was previously purely hired as a technical contractor, but is now turning to being an owner of the Infrastructure leasing segment and this is considered the focus of CTR.
Also according to Mr. Truong, the profit margin of leasing infrastructure is at least twice as high as the interest rate of bank loans, much better than that of service. Revenue from leasing infrastructure will increase sharply each year because the number of investment stations also increases year by year. In 2019, the infrastructure leasing segment will reach less than 10 billion VND, but in 2019 it will increase to more than 150 billion VND because infrastructure investment needs time from 6 months to 1 year, then it is time to "harvest". . Investors need to look at the amount of solid waste investment, then it will certainly lead to positive business results.
Mr. Truong also said that the acquisition of infrastructure from Viettel will be carried out in the spirit of ensuring efficiency, balancing benefits and will proceed according to the schedule. CTR carries out infrastructure acquisition, as well as investing itself based on equity and bank loans and do not issue additional shares to raise capital from shareholders, ensuring the ROE at over 20%. Regarding loans for investment banks to lease infrastructure, CTR leaders said that the company will not borrow too much, only borrow at medium term from 3 to 5 years.
Answering shareholders about whether CTR plans to invest in infrastructure leasing abroad? General Director Pham Dinh Truong said that this is the aspiration of CTR. But the barriers of investment laws and national laws, as well as the transfer of capital to foreign countries, cannot easily be done. In the immediate future, solid waste will focus on investing in domestic infrastructure, as well as promoting the economic and cultural activities in foreign markets. At the time of sufficient resources, CTR will deploy investment in rental infrastructure in other countries like in Vietnam.
With the Integrated Solutions (GPTH) segment, Mr. Truong said that it is actually a service and has only brought revenue from the second half of 2019. This year, CTR is confident to reach the plan of 333 billion dong. The CTR of CTR is currently focused on the solar array, which is a national strategy and solid waste is doing very well. In addition, the smart home segment also has great potential in the context of positive economic growth in Vietnam, as well as the expectation to become a developed country in the near future, creating many opportunities for this field.
For civil construction, CTR now has permits to build works with up to 30 floors. However, Mr. Truong said that this is not a strong point and CTR will not be towards this segment. CTR currently focuses on low cost projects, villas, helping to quickly recover capital.
Stock prices have grown positively since listed
Chairman Duong Quoc Chinh assessed that the stock of CTR has been going up steadily and it is very happy. Even in the downturn caused by the Covid-19 effect, CTR also quickly recovered to the pre-epidemic price range. According to Mr. Chinh, the support from Viettel has helped CTR to have a source of work as well as potential for long-term development, thereby creating a firm trust for the company's shareholders.
At the meeting, Mr. Duong Quoc Chinh also resigned from the position of Chairman of the Board of Directors due to his retirement. Replacing Mr. Chinh as the Chairman of the Board is Mr. Nguyen Dinh Chien, currently holding the position of Deputy CEO of Viettel.
Credited: Cafef.vn