TTC Land's General Meeting of Shareholders (SCR): Sudden announcement that it will become a strategic shareholder of Deo Ca.
People think real estate investment is merely selling allotted land or swing trading. We are different, we prefer not to do risky investments but long-term ones. In collaboration with Deo Ca, TTC will invest directly in key infrastructure projects.
Mr. Vo Quoc Khanh, General Director of Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land, stock code SCR), shared this information during the General Meeting of Shareholders this morning (April 25, 2022).
Strategic collaboration with HHV, project development along with the forthcoming transportation infrastructure
TTC Land has signed a contract and will become a strategic shareholder in Deo Ca Traffic Infrastructure Investment Joint Stock Company (stock code HHV), according to Mr. Khanh. This information was announced yesterday during Deo Ca Group's 2022 Annual General Meeting of Shareholders (April 24). Under a new model, the two parties will collaborate to develop infrastructure and real estate projects.
In the light of clear infrastructure planning, TTC Land collaborates with Deo Ca to implement key transport infrastructure projects as well as to continue to expand the new land fund to connect with the development of transport infrastructure, deploy real estate utility platforms, and real estate services, improving the quality of life and creating modern civilized living spaces. Mr. Khanh added that TTC Land will continue to develop the land fund on this orientation.
As a result, TTC Land's development orientation in the next three years will also follow the abovementioned trend. According to Mr. Khanh, the most challenging issue in real estate is still legality. Capital flow is always there as a problem in all scenarios; if not in this industry, it will be in another; if not directly, it will come indirectly; It is tough but not concerning. Besides, in the scenarios of many modifications being updated in policy and the right and wrong stories are difficult to tell, which resulting sudden changes as obstacles for the real estate industry.
TTC Land will undertake large-scale projects. TTC Land secure our orientation that "it must be done properly from the beginning as it is critical in the real estate that once we make a mistake, we can't go back."
As a result, TTC Land must modify its business strategy, renovate products, and reform the supply... to avoid unexpected congestions, for instance winning one project will grow significantly while being stuck on one project will fall dramatically. Likewise, when selecting a partner and developing the land fund, it is crucial to start from the beginning, including examining infrastructure planning and closely following the Government's orientation.
TTC Land will focus on resolving existing projects with unfinished legal formalities within this year or next year. TTC Land is attempting to dismiss the old obstacles and deliver products within the next 1-2 years.
In response to shareholders' questions about TTC Land's current land fund, Mr. Khanh stated that the total land fund is 320 hectares, which includes the area in Ho Chi Minh City's central districts (4 hectares), 180 hectares in Bien Hoa, 13 hectares in Cu Chi, 40 hectares Long An, and 90 hectares in Phu Quoc, which is investing and completing the legal framework for the project. Furthermore, through collaboration with Deo Ca, TTC Land is researching a relatively large land fund in Bao Loc, Binh Duong, and several areas around Ho Chi Minh City, with a focus on sticking to the southern key economic region, following the highways, and key infrastructure projects connected to the land fund.
The land fund has cleared almost 70% of the overall area, and 60-70 hectares remaining of projects in Phu Quoc still need to be cleared. Some projects’ infrastructure has been implemented on a 1/500 scale, while other projects will be launched this year.
TTC Land is the company that develops, distributes, and collaborates to invest in the Slavia Phu Quoc project, which is owned by the mother company. TTC Land will also benefit a lot from this project’s efficiency.
Mr. Khanh also stated that the company is working with the group's leaders to implement a step-by-step M&A strategy and collaborate on this project. This is one of the 5 biggest projects in Phu Quoc that the Group has been working on for over a decade. It has nearly completed legal formality and compensation procedures and is focusing on construction to kick off shortly. More information on the initiative is scheduled to be disclosed before the end of the second quarter.
Furthermore, other companies in the group possess numerous established projects; in which TTC Land will also participate in terms of cooperation, M&A, and distribution.
The 2022 plan target a profit of VND 300 billion, of which the first quarter has already archived 25% of the plan
Especially in 2022, TTC Land has set a business target of VND 2,135 billion in net revenue and VND 300 billion in pre-tax profit for 2022, up 27 % and 24 %, respectively, from 2021.
As of the end of Q1, TTC Land reported revenue of VND 395 billion, 7 times higher than the same period last year, and pre-tax profit of VND 70 billion, double that of the first quarter of 2021, reaching almost 25% of the plan.
However, shareholders question if TTC Land's proposal is possible in the current unfavorable real estate market environment. According to a company representative, every industry has its ups and downs. TTC Land's plan has been properly examined and implemented. The Carillon 7 project, Panomax, and a part of the Selavia Phu Quoc project will generate revenue this year. During the year, the company will open and sell projects that had completed legal formalities, and offer more associated projects in the group, M&A, and distribution.
TTC Land will continue to push sales at projects such as Panomax, Tamashi, Selavia, Jamona Heights, Charmington Iris, and boost occupancy rates at projects including STM TTC Plaza Duc Trong, Belleza, and Jamona Heights. Meanwhile, the company will also push the sales team to look for tenants for new projects like Tan Son Nhat STM and STM Tamashi Da Nang.
Furthermore, TTC Land also focuses on completing the legal formalities of ongoing projects such as Panomax, Charmington Dragonic, TTC Plaza Duc Trong, Chamington Tamashi, Jamona Golf & Life, Charmington Iris, and Charmington Tan Son Nhat to be able to bring under operation, construction and preparation for the coming years.
Regarding the subject of credit and bond tightening, Mr. Khanh explained that this is the general scenario and there has recently been a lot of information relating to this topic. Last week, he traveled to Hanoi to meet with credit partners and counsel, as well as to understand the perspectives of some partners and management agencies, and he was confident that this is a movement to clean up the market and help the real estate industry expand healthily.
As a result, only loans with improper and inappropriate intents are tightened, but if the debtors invested in practical projects, the door leaves open for them. Apparently, there are also additional obstacles, but TTC Land is strong and confident enough to convince partners and financial institutions.
Increase capital to VND 4,643 billion
TTC Land is expected to increase its capital from 3,664 billion VND to 4,653 billion VND in 2022, including paying a dividend of 8% of the number of existing shares, an exercise ratio of 25:02, and the issuance of an additional 29,3 million shares.
At the same time, TTC Land issued roughly 51.3 million shares to current owners, a 14 % increase, at a price of 14,000 VND per share. It is expected to be released in 2022. The detailed capital usage plan authorizes the Board of Directors to make decisions and proactive adjustments as needed.
TTC Land will also issue 5% ESOP shares, equating to an additional 18.32 million shares at an offering price of VND 11,000/share (based on book value at the end of 2021 of VND 13,738/share), with a one-year transfer restriction.
TTC Land leaders shared an overview, stating that the income from the issuance will be used to supplement investment capital for the company's existing projects such as Panomax River Villa, Charmington Tamashi, and so on, as well as research for new projects in satellite urban areas near Ho Chi Minh City such as Dong Nai, Long An, Tay Ninh, or where infrastructure and traffic are now being invested synchronously such as Phu Quoc, Binh Thuan, and others.
In this General Meeting of Shareholders, the Board of Directors also dismissed and elected additional members of the Board of Directors.
On April 4, 2022, the Chairman of the Board of Directors, Ms. Nguyen Thuy Van submitted a letter of resignation for personal reasons.
Accordingly, the General Assembly carried on an election for a replacement. Finally, Ms. Huynh Bich Ngoc was appointed Chairman of the Board of Directors, Mr. Dang Hong Anh was appointed Vice Chairman of the Board of Directors, and Mr. Vo Quoc Khanh was retained as General Director of TTC Land.
Ms. Huynh Bich Ngoc and Mr. Dang Hong Anh's return is expected to result in a significant transformation of TTC Land, boosting the development strategy through 2025.
Source Vietnam Investment Review
