Cienco4 promises to make a breakthrough from its core operation
(Securities Investment News) – Ministry of Transport and Thái Nguyên People’s Committee issued an official document approving the solution to toll collection at Km77+922.5 of the National Highway no.3 for capital refund of Thái Nguyên – Chợ Mới (Bắc Kạn) construction investment project and improvement and expansion of National Highway No.3 section Km75-KM100 in the form of BOT.
Signal from BOT National Highway No.3
The vehicles of communes, wards and towns of Thái Nguyên and three districts Phú Lương, Đại Từ and Định Hóa within 10-30km radius will be reduced the toll up to 50-100% as compared to the toll at Km77+922.5 of the old National Highway No.3. Beside this, the vehicles outside 30km radius will be reduced 10% toll. This is the first time there has been such sharp toll reduction all over the country.
The toll reduction helps lower the impact on households’ living in the neighborhood and offer a financial solution to the difficulties that the investor and contractor have been facing.
BOT Thái Nguyên – Chợ Mới Project was implemented by the joint venture of Cienco4, Tuấn Lộc and Trường Lộc with total investment fund of 2,713 billion VND.
Even though it is a large-scale project, the delay in toll collection has caused serious difficulties to Cienco4. Thus, the new issued solution to toll collection somehow promises to secure the company’s capital refund plan. Other BOT projects under Cienco4’s operation include Vinh city bypass, southern Bến Thủy bridge – Hà Tĩnh bypass, National Highway No.38 at section Yên Lệnh – Vực Vòng, and Nghi Sơn – Giát bridge.
Numbers of big transport projects in 2019 be launched
Cienco4’s General Director Nguyễn Tuấn Huỳnh told the Security Investment Review that despite limited budget and few transport projects in 2018, Cienco4 has stabilized its business and operation.
“Regarding construction projects alone, Cienco4 completed five large-scale projects: the runway and parking lot of Nội Bài International Airport, runway of Cam Ranh International Airport, Vinh airport (phase 1 and 2), Hiếu no.2 bridge (in Nghĩa Đàn, Nghệ An), and National Highway No.48 – Lạch Quèn”, said Huỳnh.
Besides this, Cienco4 continued its transport projects of Đông Khê bridge in Hải phòng, Tân Vũ – Lạch Huyện road, package CP1a of Hồ Chí Minh Metro section Bến Thành – Suối Tiên, package no.1 of Mai Dịch – Nam Thăng Long, sub-project of Lao Bảo urban road, Mộc Bài urban road, package J3 of Bến Lức – Long Thành expressway, and National Highway No.1A to Đầm Môn. Cienco4’s leader shared the work value in 2019 to be 5,687 billion VND.
Beside its core operation of transportation construction and investment, Cienco4 is the investor of several real estate projects, resorts, and office buildings such as Cienco4 Tower at 180 Minh Khai (Hồ Chí Minh city), building at 116 Đinh Tiên Hoàng (Hồ Chí Minh city), service complex and resort Cầu Cau (Nghệ An), and apartment complex 61 Nguyễn Trường Tộ (Vinh city). Even though the transport market has been facing difficulties, Cienco4 has remained its business with interest rate of return against revenue increasing in recent years.
Particularly in 2017, Cienco4 reached 4,110 billion VND of revenue and 185 billion VND of interest after tax, equal to 45% rate. In 2018, revenue was 3,272 billion VND and interest after tax was 171.8 billion VND, equal to 54.6% rate. The company’s share dividend was paid in cash, at 17% per year, staying at high rate as compared to others in the industry.
Cienco4 expects to reach benefit of 3,500 billion VND and interest after tax of 250 billion dong and pay the share dividend of 20% at least. To expand the operation, Cienco4 plans to increase its charter capital to 1,000 – 1,350 billion VND this year and post C4G security in the official stock exchange early period 2019-2014.
BOT Thái Nguyên – Chợ Mới was completed and put into operation in May 2017 with two portions: implementation of 40km along the National Highway No.3 section Thái Nguyên – Chợ Mới (Bắc Kạn) and improvement and expansion of National Highway No.3 section Km75-Km100. As plan, the project will have two toll stations as the financial method for refund. However due to some difficulties, only one toll station is opened, resulting in 85% of vehicles travelling through the road without toll station.