Accumulated in 2019, the parent company CTR recorded VND 4,791 billion in revenue, VND 188.3 billion in after-tax profit, up 19% and 22% respectively compared to the previous year.
Viettel Construction Joint Stock Company (CTR) announced the parent company's financial statement for the fourth quarter of 2019 with net revenue of VND 1,293 billion, up 22% over the same period last year, net profit of VND 55.65 billion, up 59%. over the same period. This is also the quarter that recorded the highest revenue and profit of CTR since its establishment.
Regarding revenue structure, the operation of BTSs and information rescue contributed 773.4 billion dong, up 18%; while construction revenue also increased by 33% to VND 300 billion; trade revenue increased by 17% to 198.7 billion dong.
Gross profit during the period of VCC reached 82 billion, up 49.6% over the same period. The Q4 / 2019 gross profit margin also improved slightly to 6.3%, while the same period last year, the gross profit margin was only 5.2%.
At the end of 2019, the cash and equivalent balance of VCC amounted to VND 783.5 billion, nearly doubled from the beginning of the year (beginning of the year 409.3 billion). The large deposit balance at the bank helped financial revenue from deposit interest of VCC in Q4 amounted to 7.4 billion while the same period was 2 billion, equivalent to an increase of 370%.
The expenses incurred in the period are mainly the administrative expenses. In Q4 / 2019, the administrative expense of VCC was 28.7 billion VND. The application of new technological process in management helped VCC save 3.25 billion in costs over the same period, equivalent to 11.5%.
After deducting expenses incurred in the period, VCC reported a profit after tax of 55.65 billion VND in the fourth quarter of 2019, an increase of 59% and is the highest profit since its establishment.
Accumulated in 2019, the parent company CTR recorded VND 4,791 billion in revenue, VND 188.3 billion in after-tax profit, up 19% and 22% respectively compared to the previous year.
Specialized business, benefiting from telecommunications infrastructure development
Viettel Corporation has the role of building and operating telecommunication infrastructure of the group. Currently, the business development strategy towards 4 strategic directions is "Construction, Operation, TowerCo, Integrated Solutions".
Xây lắp là mảng kinh doanh truyền thống của CTR và doanh nghiệp đang nắm vị trí số 1 về xây lắp công trình viễn thông tại Việt Nam. Việc Viettel đầu tư ra các thị trường kinh doanh tại nước ngoài cũng kéo theo quá trình mở rộng hoạt động xây lắp của CTR.
However, this traditional business is no longer playing the No. 1 role with VCC because the demand for expanding construction investment is not so much as before and depends largely on Viettel. In 2019, the construction revenue of VCC is only VND 1,292 billion, accounting for 26% of the Corporation's revenue structure.
From 2017, VCC has gradually shifted from traditional services to construction and operation of telecommunication networks. As a result, in 2019, the mining and operating sector brought in VND 3,044 billion for solid waste, accounting for 61.3% of total revenue and is the key business of VCC. If compared with 2017, the total revenue of Operation is 1,727 billion, in 2019, the revenue of Operation increased by 76.2%.
The strength of VCC in the field of exploitation and exploitation is the large technical and professional human resources, about 10,000 people and benefiting with the investment expansion process of Viettel. According to the plan, by 2020, solid waste will be operated and exploited in 6 markets that Viettel Global has invested in: Laos, Campodia, Peru, East Timor ... Currently, apart from working for the parent group (Viettel), VCC has implemented mining operations for foreign networks such as FPT Telecom, CMC Telecom, Mobifone, VTC ... and will continue to strongly expand outside customers based on strong advantages in labor, location, facilities and competitive unit price.
In 2020, VCC will coordinate with Mytel to agree the receiving route with the goal of ending April 2020 to carry out the operation of at least 85% of access network layer in Myanmar market. VCC revenue target is 500 billion from Operation of foreign markets, Operation for Viettel in foreign markets will be a stepping stone to continue deploying Operation of networks outside Viettel.
Besides the two traditional fields of construction and operation, the next development target of VCC in the coming years will be to promote the field of Infrastructure for leasing and Integrated solutions, which is an appropriate step in the current 4.0 era, it is not dependent on too many work sources from Viettel.
However, the contribution of the leasing infrastructure and integrated solutions to the revenue structure of VCC is not high because it is in the process of accelerating development, especially in the field of leasing infrastructure. VCC set a target that by 2025, it will shift from the construction contractor to the number 1 infrastructure investor (TowerCo) in Vietnam.
TowerCo prospect in long term
TowerCo development is now considered an indispensable trend because the network operators are gradually abandoning the ownership of fixed assets to focus on investing in core activities. Infrastructure leasing areas can be mentioned such as leasing BTS infrastructure, underground infrastructure, energy leasing infrastructure, building coverage, and fiber optic cable leasing.
According to statistics, the proportion of infrastructure held by TowerCo in the world compared to traditional infrastructure stations has increased 2.7 times from 25% in 2014 to 76% in 2018. TowerCos in the US such as American Tower Co , SBA Communications ... are all highly valued with P/E of over 20 times. Even American Tower Co (USA) is valued at P/E of 65 times.
In the long term, developing rental infrastructure is the direction suitable to the needs of telecommunications, 4G, 5G and IoT infrastructure development in Vietnam. However, the investment process will take a lot of time and according to the roadmap of VCC by 2025, it will be transformed into the No. 1 TowerCo in Vietnam. In 2020, VCC plans to build 5,000 new BTSs, 120 km of underground sewers to meet the rental needs.