In the morning of April 11, 2019, Power Construction Joint Stock Company 1 (PCC1) held the annual general shareholders meeting 2019. The meeting has approved the Income statements of 2018, business plan of 2019, financial statements of 2018, profit distribution plan, dividend payment plan of 2018 and some contents as in report presented in the meeting.
Report of the Board of Directors of Power Construction Joint Stock Company 1 which was approved at the General Meeting of Shareholders 2019 has recorded many positive bright points about the results of production and business, profits in key sectors including electrical construction and installation, hydropower, industrial production and real estate.
Year 2018 – High turnover – high efficiency
Sticking to strategic objectives for the period of 2018-2022, PCC1 has kept improving the system management capacity; adjusting management diagram, quickly and successfully deploying solutions to improve construction and installation capacity, steel column production capacity to meet the high growth target of 2 traditional business blocks. The company also strongly affirmed its position in other business sectors such as energy investment, real estate investment, consultancy and services. Accordingly, at the end of 2018, the company achieved turnover of VND 5,084.42 billion, after-tax profit reached VND 466.55 billion, exceeded 2% of the plan.
With the above results, the dividend rate of PCC1 approved by the General Meeting of Shareholders for 2018 is 20% by stock, equivalent to more than 26.5 million of shares for dividends payment; issuing source is from undistributed after-tax profit under the ownership of shareholders of the parent company on the audited consolidated financial statements dated December 31, 2018. Shares shall be issued without restriction of transfer and expected implementation time is not later than the third quarter of 2019.
Regarding the business plan, PCC1 aims to reach VND 6,043 billion of turnover in 2019, (increases 19% compared to 2018), and VND 424 billion of net profit, equivalent to the rate 27% /chartered capital. With this target, the expected dividend payment for 2019 is 20%.
In 2019, PCC1 set up an action strategy for all sectors: closely sticking to the strategic objectives 2018-2022 and vision 2030, maintaining an average turnover growth rate of 20% / year; After-tax profit/average annual turnover of 8% or more, continuing to maintain the No. 1 position in Vietnam and affirming its prestige in the field of construction of super-high-voltage projects, design and manufacture of high-voltage and ultra-high-voltage electric poles.
With many new market access solutions and suitable products, the main business which is electricity construction and installation has recorded very positive results. The total value of contracts forwarded from 2018 and signed newly in the first quarter of 2019 is estimated at over VND 3,300 billion- highest ever and mainly focused on EPC and PC contracts. According to Mr. Vo Hong Quang, the demand for electricity investment in the coming years will remain high, with the forecasted annual growth of about 10%, especially for investment in wind and solar power projects. The interest of many foreign investors will create investment opportunities and increase of construction, installation and production turnover from electricity sector. In addition, the tendency to apply EPC, PC bid selection for power projects increases gradually both inside and outside EVN together with the increase of need to develop specific projects, investment in underground cable projects and GIS stations will be an opportunity to promote the strength of PCC1.
The industrial production block also achieved great success when the end of 2018, the value of new contracts for 2019 has reached over VND 1,300 billion. The block has also constantly upgraded and improved existing production lines; market work has been promoted and well-coordinated in the system, effectively exploited EPC and PC contracts. In addition, in 2018, the industrial production block also successfully cooperated and transferred the design and production technology of the tubular busbar from partner AG-AJIKAWA (Japan). New products of Dong Anh Steel Tower Manufacturing Co., Ltd with many preeminent features have been highly appreciated by leaders of Vietnam Electricity (EVN) and partners and customers in terms of quality, bearing capacity, ability to reduce wind force impact on columns and higher aesthetics, satisfying the increasing demands of national power transmission works. The product has been designed and installed for EPC contract which is construction of lines and 220kV substation of BIM solar power plant project.
Strengthening investment in new projects
Concerning energy project investment, the Board of Directors approved the investment of Trung Thu – Dien Bien Solar Power project which has expected capacity of 100MW with a total investment of VND 1,495 billion in the form of capital contribution in a newly established company, in which PCC1 holds more than 51% of charter capital.
The project is part of incentive mechanism of the Government for development of solar power projects in Vietnam which is applicable after June 2019. Investment capital source includes self-financed capital and mobilized capital, in which self-financed capital accounts for minimum 20% of cash, the rest is mobilized through corporate bond issuance. The project is expected to be commenced in the last quarter of 2019 and completed by the third quarter of 2020.
And to mobilize capital for the project, in this meeting, PCC1 also asked for opinion of shareholders about the plan to issue individual bonds to selected financial institutions. Non-convertible bonds with asset warranty are issued with the unit price of VND 1 billion, equivalent to the total issuing value of VND 1,280 billion. Expected issuing time is from second quarter of 2019 to first quarter of 2020.
Also in the meeting, Board of Directors of PCC1 submitted to the General Meeting of Shareholders a decision on the planning adjustment and investment implementation of Bao Lac A hydropower project, Thuong Ha hydropower plant project as well as wind power developemnt. In which, with the wind energy project, PCC1 targets a total capacity of 100 MW; Investment form will be through M&A or business cooperation.
Besides energy, the real estate projects are also invested by PCC1 in the coming time. As part of the company’s real estate strategy for the period of 2018-2022, in 2019, the Board of Directors has submitted to the shareholders for approval of new investment projects. Accordingly, the Company will invest in high-rise apartment buildings (mid-range segment) and low-rise buildings with a total estimated capital of VND 1,000-2,500 billion, concentrated in urban districts of Hanoi. In 2019, PCC1 aims to commence two projects of PCC1 Vinh Hung and PCC1 Thang Long in the third and fourth quarters of 2019, complete sales of PCC1 Thanh Xuan project in the first quarter of 2020, recover capital and settle My Dinh Plaza 2 project to increase cash flow, help control effectively and meet capital availability.
