Strategic "handshake" between Deo Ca Traffic Infrastructure Investment Joint Stock Company (HHV) and TTC Land: Working in collaboration on the project within the next 5-10 years, the actual capital contribution value may be larger than stated.
"We believe that the ecosystem of Deo Ca and TTC will be a bright spot in the landscape of Vietnam's transport infrastructure, regardless of whether the HHV stock dips or rebounds again. Nam. We came in later, agreeing that sharing the preceding efforts of shareholders and the company is a usual thing that strategic partners will do ", according to a TTC Land representative.
TTC Land has announced the signing of a contract and will become a strategic shareholder in Deo Ca Traffic Infrastructure Investment Joint Stock Company (HHV). Under a new model, the partners will collaborate to build infrastructure and real estate projects.
Mr. Vo Quoc Khanh, General Director of TTC Land, emphasized that as a result of general market challenges, such as misleading information, investors may assume that estate investment is merely selling allotted land or swing trading as in the previous scenario. TTC Land is oriented to develop real estate into a new model, without any risky investment but a long-term one. TTC Land, in collaboration with Deo Ca, will invest directly in key infrastructure projects.
"We commit funding to Deo Ca not only accomplish a certain project but also engage on a long-term partner who will keep the investment capital from 5 to 10 years. The value of the HHV share was mutually agreed to be considerably higher than the current value.
"We believe that the ecosystem of Deo Ca and TTC will be a bright spot in the landscape of Vietnam's transport infrastructure, regardless of whether the HHV stock dips or rebounds again. Nam. We came in later, agreeing that sharing the preceding efforts of shareholders and the company is a usual thing that strategic partners will do ", according to a TTC Land representative.
It is well known that HHV is currently a direct investor in five BOT road infrastructure projects totaling over VND 50,000 billion. Among that, four projects have been under operation including the road tunnel project through Deo Ca (including Deo Ca tunnel, Co Ma tunnel, Cu Mong tunnel, and Hai Van tunnel) with a total investment of more than VND 21,612 billion; the Bac Giang - Lang Son Expressway Project with a total investment of VND 12,188 billion; the Phuoc Tuong Phu Gia Road Tunnel with a total investment of VND 1,559 billion; and the construction investment project to expand National Highway 1A passing through Khanh Hoa totaling the investment VND 2,644 billion.
The Huu Nghi - Chi Lang Expressway project, worth VND 8,743 billion, is in the capital preparation stage for implementation.
The total investment in BOT projects is significant. Almost all BOT projects in the previous period did not include capital from the State budget. A portion of the state budget has been involved in four HHV projects that have been put into toll collection, including the Deo Ca tunnel project, but has not been fully disbursed (with VND 1,186 billion in return). The primary financial sources for project formation are investor equity and credit loans.
HHV's consolidated financial statement as of December 31, 2021, indicated a total debt of more than VND 26,000 billion, of which over VND 20,000 billion were long-term loans at credit institutions to fund BOT projects. The relevant assets of road tunnels and highways have been formed by HHV loans. HHV's total assets as of December 31, 2021, were over VND 34,000 billion.
HHV achieves VND 981 billion in revenue in 2021, marking an increase of 80% over 2020. The growth is attributed to the promotion of construction and installation activities via the signing and implementation of bidding packages for the Trung Luong My-Thuan highway, Cam Lam-Vinh Hao highway, etc. As a result, profit after tax increased significantly in 2021 to VND 230 billion (5.6 times higher than profit after tax in 2020), and the profit margin reached 23.41 %.
The Board of Directors approved a plan to distribute dividends in shares in 2021, with a payout ratio of 91.87 %.
In 2022, HHV sets a target of VND 2,515 billion in consolidated revenue, up 35.1 %, and VND 396 billion in planned profit, up 36%. HHV will also invest 4,000 billion VND in the project's development.
Source: TTVN.VN
