The ceremony was attended by Mr. Do Manh Hung – Chairman of the Board of Directors of Viettel Construction, Mr. Pham Dinh Truong – Member of the Board of Directors - General Director, Mr. Bui Duy Bao – Chief Accountant.
On the side of Viettel Group, there was the appearance of Ms. Vu Thi Mai – Member of the Board of Directors of Viettel Construction (Head of Human Resources Organization Committee of Viettel Group), Ms. Nguyen Thi Hai Ly – Head of Financial Investment Department.
Viettel Construction shareholders in 2024 can participate in person or online
With the result, total revenue in 2023 will reach VND 11,398 billion, up 20% compared to 2022 and equal to 110% of the set plan (VND 10,338 billion). Profit before tax reached VND 645.4 billion, equivalent to completing 105% of the year plan of VND 613.2 billion (up 16% compared to 2022).
At the ceremony, shareholders approved submissions on the 2023 profit distribution plan. In which, the Corporation paid dividends entirely in cash at the rate of 27.2% (VND 311 billion).
In 2024, the Corporation plans to achieve revenue of VND 12,653 billion, up 11% compared to 2023. Profit before tax was VND 671.4 billion, 4.1% higher than last year.
At the Congress, the Presidium answered and shared information from in-person and online questions:
Question No. 1: Why does the Corporation plan for 2024 lower profit growth than revenue growth?
Mr. Pham Dinh Truong – General Director of Viettel Construction said: The Corporation develops a plan based on the assessment of the business environment and the principle of prudence. The Board of Directors and the Board of Directors always set the working principle: The task promised to shareholders must be completed or better. The company's business results are updated monthly for shareholders to grasp information. This year, because the capital has not been raised, the profit growth, the basic earnings per share (EPS) target will also increase and will also help the stock price better.
Mr. Pham Dinh Truong - CEO of Viettel Construction
Question 2: What is the next 5-year development strategy? Which segment is the main growth segment?
The Corporation is developing a strategy to 2030, with a view to setting a growth target of at least 10%. Growth will come from all sectors:
+ The Operation sector grew by an average of about 5% according to infrastructure.
+ The construction sector grows better based on the potential construction market in Vietnam. When there is prestige, the company will increase market share.
+ The field of Solutions & Technical Services combined with B2C civil construction creates a complete ecosystem to better resonate. This segment will grow thanks to economic development, per capita income increases.
+ Infrastructure investment will have a high growth rate thanks to 5G network. Carriers will very quickly deploy 5G for business.
Question No. 3: What do you share about the investment situation of the North-South expressway project and the circuit 3 power project?
Circuit 3 electrical project of the Corporation participated, due to insufficient capacity related to industrial electricity, the company immediately worked as a subcontractor for the main contractor. The ongoing contract is worth $15 billion for the construction section. Some more column erection packages will be coming soon.
North-South high-speed underground cable investment project: The project has been approved by the Board of Directors, expected to invest nearly VND 400 billion this year, the project will follow the progress of the North-South expressway implementation of the Government.
Question No. 4: The B2C ecosystem in Vietnam has great growth potential and the Company has the advantage of coverage, why does the Company not focus on promoting but allocating investment resources to the Australian market? Is the move to Australia an exploration company or a strategic move?
To have a long-lasting and sustainable business, strategic steps must be long-term. For example, the success of Viettel Group thanks to the long-term strategy of foreign investment very early, last year overseas service revenue was equal to telecommunications revenue in Vietnam. Viettel is very experienced in investing abroad, there are many models, but every model must be effective and safe. Viettel Construction's approach will be implemented cautiously: The first step is to approach foreign partners to do trade, step 2 is to send personnel to learn experience, step 3 is to evaluate the market, especially the legal issues of the host country and the effectiveness to decide whether to follow the form of investment or follow the form of providing services.
Shareholder Minh Toan asked questions at the meeting
Question No. 5: Low rate of sharing TowerCo infrastructure, a trend in the world of joint venture telecommunications companies to establish Towerco companies to take advantage of each other's infrastructure. If other network operators also jointly establish TowerCo domestically, will they become a big competitor for Viettel Construction? Do you have a solution to increase the share rate and prevent other carriers from also establishing their own TowerCo?
The Ministry of Information and Communications encourages businesses to share infrastructure, Viettel is a pioneer in this trend. The current shared rate of 1.03 to 2025 may increase to 1.05 or 1.1 because Viettel Construction's station fund is increasing and in new positions existing carriers will have to rent. The trend is that network operators will not invest in owning infrastructure but rent. Regarding the joint venture of network operators, like China, network operators contribute infrastructure to establish joint infrastructure companies based on existing infrastructure. Viettel Construction is a joint stock company, so it can completely contribute infrastructure with network operators into a common infrastructure company.
Question No. 6: Why in 2023 will not pay dividends in shares but all in cash when the company needs a lot of capital to invest in rental infrastructure? The welfare reward fund deduction rate increased from 15% in 2022 to 25% in 2023. It turns out that EPS will decrease by 10%. Does the company calculate a harmonized plan for shareholders?
Answering this question, Mr. Do Manh Hung – Chairman of Viettel Construction said: The failure to pay dividends in shares is due to the Company's compliance with a number of provisions of law. In order to have resources for the next 5 years, Viettel Construction plans to increase capital, in the report of the Board of Directors, we also orient this as a key task of this year. The specific capital increase plan will be reported to the General Meeting after full information is available. Currently, we are considering many options to increase capital, prioritizing which one ensures the best interests of shareholders. Regarding the orientation for the next 5 years, there will be 2-digit growth and at least 10%. The corporation sees an opportunity in the next 5 years or even 10 years as the 5G story. Therefore, Viettel Construction determined that this is a challenging but interesting time for the Corporation to realize its sustainable development goals. Viettel Construction will have to invest heavily to dominate the rental market, we prioritize investing in station infrastructure for 5G, in addition to investing in sources for the station.
Mr. Do Manh Hung - Chairman of the Board of Directors of Viettel Construction
Regarding fund appropriation: We comply with the provisions of the Law, in 2023, we will deduct the Development Investment Fund to have investment capital, deduct more Welfare Reward Fund with the desire to ensure the welfare of employees and reward timely incentives for employees to successfully complete tasks and overcome challenges of 2024, thereby creating more plenty of profit for shareholders. We have carefully considered and calculated the profit distribution plan based on the harmony of interests for shareholders and employees.
Question No. 7: Currently, the company owns more than 6,000 stations, compared to other carriers such as Vinaphone, MobiFone, how is the correlation of stations? After the 5G cycle, is the scale of my infrastructure equivalent to the above carriers?
Currently, Viettel Construction owns about 6,500 stations, MobiFone owns about 15,000 stations; Vinaphone also has about 15,000 stations. This year we added 4,000 stations to more than 10,000 stations, equal to 2/3 of Vina or Mobi's stations. When 5G booms, Viettel Construction can own up to 30,000-50,000 BTS stations in the next 5-10 years.
Representatives of the fund asked questions to the Presidium at the ceremony
Question No. 8: Which area does Viettel Construction's BTS station invest in for lease (urban or remote, North or Central, South?
We build rental stations nationwide regardless of the area.
Question 9: Are there any other operators renting stations of Viettel Construction besides Viettel?
In addition to Viettel, Vinaphone and MobiFone rent stations of Viettel Construction. The overall ratio is 1.03 and the trend is upward.
Question No. 10: Does Viettel Construction want to cooperate with foreign partners on new technologies?
Viettel's development of 5G infrastructure is an opportunity for Viettel Construction to grow in the next 5-10 years. Viettel Construction is always ready to find partners both at home and abroad with potential and experience to learn experience, advanced model technology, and sustainable development together.