On the morning of November 3, 2020, an investor seminar was held at Viettel Construction (Ticker: CTR) at the headquarters of the Military Industry and Telecommunication Group (Viettel).
Photos of investors attending the seminar
Accordingly, Viettel Group will auction approximately 7.75 million CTR shares, equivalent to 11% of the Corporation's charter capital. Currently, Viettel Group holds 73.22% of CTR shares. The auction will take place publicly through the Hanoi Stock Exchange (HNX) in the first week of December.
At the seminar, Mr. Pham Dinh Truong - General Director of CTR revealed that the Corporation's revenue target could reach 1 billion USD by 2025, instead of the result of 11,500 billion VND revenue and 518 profit. billion of the plan set out earlier. Because this result is only calculated based on the target that Viettel Group assigns CTR to seek external jobs at 30% of total revenue, while the Board of Directors of CTR orientates that external work sources must be at least 50. % on total.
Mr. Pham Dinh Truong - General Director of CTR shared his investment thesis
According to the recent financial statements of CTR, accumulated 9 months of the Corporation achieved revenue of 4,235 billion VND, up 15% and profit after tax 168.3 billion VND, up 35% over the same period last year. In 2020, CTR targets a net profit of 199 billion VND and with the results after 9 months, the Corporation has completed 85% of the set target.
In addition, the General Director of CTR also mentioned that the investment of CTR up to 2025 is up to 10,000 billion VND for TowerCo, of which equity is about 60% and loans account for 40%. The Corporation will not issue to increase capital to shareholders nor issue bonds for investment.
With this orientation, CTR will build a new broadcasting station (BTS) and receive more stations from Viettel Group (preliminary estimate 10,000 stations). However, receiving the station from Viettel Group is still facing legal problems and cannot take place immediately. CTR leaders expect that 2021 will solve the legal problem.
Present at the seminar, there was also Mr. Nguyen Dinh Chien - Chairman of CTR said that the TowerCo market in Vietnam will explode in the coming years because:
- Operators' profits are on a downward trend, leading to an increased need to share infrastructure instead of self-investment to reduce costs;
- Investing in stations by themselves causes waste of social resources and the Ministry of Information and Communication has the policy to encourage telecommunications businesses to increase sharing of infrastructure;
- The launch of 5G will lead to skyrocketing demand for transmitting stations (estimated to need 10 times the number of 4G stations) and sharing will be more beneficial, this is also an opportunity for TowerCo businesses like CTR.
Mr. Nguyen Dinh Chien - Chairman of CTR Board (left); Mr. Pham Dinh Truong - General Director of CTR (right)
Mr. Nguyen Dinh Chien shared with investors, this period is the ripe time for operators to optimize costs, save social investment, so TowerCo is a big trend. However, the sharing rate of carriers is still quite low, but this will improve in the near future.
Currently, CTR's station sharing rate is 1.05, according to CTR leaders, which is profitable for the company. With the advantage of the outstanding number of stations (after receiving from Viettel Group), CTR expects the company's shared ratio to increase to 1.3 in the near future. Plan to 2025, TowerCo’s revenue of CTR will reach 2,550 billion, equivalent to an average growth rate of 51.6% / year.
In the field of operation and exploitation, CTR leaders said that the company is trying to promote operations for businesses outside Viettel. Currently, there are partners from the US and France that want CTR to operate and exploit. However, due to the evolution of Covid-19, this work has not happened yet.
Some questions from investors:
* What is the specific orientation of Viettel Group with the transfer of infrastructure to CTR, would the management tell us the expected time, the number of specific stations?
Summarizing the answer: “This is a policy in the 5-year strategy, we are actively implementing this policy, but this activity relates to the policy of selling assets to joint-stock companies, so the Legal is being intervened. From the perspective, the parent company also wants to transfer it to make the operation more efficient. It is expected that by 2021 this can be done ”- Mr. Nguyen Dinh Chien said.
* Currently, Viettel Construction has deployed and exploiting telecom infrastructure in foreign countries such as Cambodia, Myanmar, ... So will CTR participate in operating and exploiting any other markets in the coming time? If so, what is the specific route?
Summary of answer: “Regarding the policy of expanding in foreign markets, Viettel Group supports us, but in terms of business the market companies and CTR are independent of each other. Therefore, if you want to open a business in one market, you must prove 2-way, the unit that plans to outsource for us to operate and our own operation needs to prove effective for both parties, and the environment of that country Are there any advantages to expand external sources of Viettel like the current solid waste model in Vietnam? ”- Mr. Pham Dinh Truong said.