KBC expects revenue to reach VND3 trillion in Q1 on industrial zones

Sunday, Feb 07, 2021 17:48

Canon's factory in Que Vo Industrial zone, Bac Ninh Province. — Photo courtesy of Kinh Bac City

Kinh Bac City Development Share Holding Corporation (KBC) expects to benefit from leasing industrial zones.

Recently, Kinh Bac announced it was establishing Hung Yen Investment and Development Corporation with the charter capital of VND1.8 trillion. The foundation is a part of new investment to build a big Industry – Urban Complex in Hung Yen Province.

Kinh Bac, which is the parent company, poured VND1.08 trillion in Hung Yen Investment and Development Corporation, equivalent to 60 per cent ownership, while Sai Gon – Hai Phong Industrial Park Corporation contributed VND108 billion, equivalent to 10 per cent of equity stake.

With contracts signed in 2020 and early 2021, Kinh Bac expects its consolidated revenue to reach VND3 trillion in the first quarter of this year, with a profit of more than VND1 trillion.

The key driving force for these positive expectations come from industrial areas projects including Nam Son Hap Linh Industrial Park, Quang Chau industrial Park, Phuc Ninh Urban area and Trang Due Urban.

In 2021, Trang Cat project, which is 100 per cent owned by Kinh Bac, will be the company's key project. The Trang Cat Industrial Park and Urban Area is 584.9ha in size and has completed site clearance compensation of 582ha. Kinh Bac paid all land-use fees of Trang Cat Urban area and Hai Phong Government just handed over the to the company for further procedures.

According to Kinh Bac, more and more foreign investments are on the way. Kinh Bac is managing nearly 5.3ha of land for developing industrial parks, accounting for 5.5 per cent of total land for industrial parks across the country.

“We believed that the booming period of attracting foreign investments is coming soon," Kinh Bac said in a statement.

"So Kinh Bac will focus on our strength in existing land for industrial parks, as well as expand industrial and urban land in strategic sites, heading to build more modern industrial and urban complex in the future.”

In the fourth financial report, the company posted an increase of more than 69 per cent year-on-year in net revenue to VND1.2 trillion in the last quarter of last year.

However, its profit after tax in the same period declined by 49 per cent to VND200.9 billion. Revenue from leasing land and transferring real estate, which is its key business, declined VND1 trillion, while revenue from leasing plants and offices increased but at just the small amount of VND140 billion.

Company expenses rose sharply in the last quarter, of which financial activities expenses, sales expenses and general and administrative expenses rose 25.6 per cent, 60 per cent and 110.1 per cent, respectively.

In 2020, its revenue decreased by 33 per cent against 2019 to nearly VND2.2 trillion. The company’s profit after tax also went down to VND297.4 billion, down 71.4 per cent.

On the Ho Chi Minh Stock Exchange, KBC’s shares have rose dramatically since the end of last year, up more than 74 per cent. The gain was boosted by a strong buying from Dragon Capital’s funds.

Within two weeks, Dragon Capital’s funds bought more than 9 million of KBC’s shares, increasing its holdings in the company to 33.14 million shares, accounting for over 7 per cent of KBC’s shares.

The share was traded at VND40,000 at the end of last Friday, down 0.37 per cent. — VNS

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