Continuously increasing hot capital, investing in hot fields, Bamboo Capital is still gloomy

Bamboo Capital (HoSE: BCG) is a new name in the real estate and energy market of Vietnam. BCG was established in 2011, operating in 4 main areas: renewable energy (mainly BCG Energy); production, trade and agriculture (mainly Nguyen Hoang); construction and infrastructure (mainly Tracodi). Especially in recent years, real estate (mainly BCG Land).

In the period of 2021-2022, BCG will carry out two more mergers and acquisitions (M&A) deals for AAA (insurance sector) and Tipharco (pharmaceutical and medical sector).

To have capital to carry out the above M&A deals, BCG has continuously increased its capital, especially in the period 2020-2022. From a capital of VND 1,370 billion in September 2020, by September 2022, BCG has increased its capital 6 times and currently reaches VND 5,334 billion, equivalent to an increase of approximately 4 times in just 2 years. Notably, if calculated from the 10-year mark, BCG has increased more than 240 times.

In addition to issuing shares, BCG also increased capital by issuing corporate bonds (CBOs). At the end of 2022, BCG's outstanding CBOs were VND7,533 billion, accounting for 50% of its financial debt of VND14,935 billion. BCG's CBO issuances included many companies in the Bamboo Capital "ecosystem" such as BCG Energy and BCG Land.

At the end of the third quarter of 2023, Bamboo Capital had net revenue of VND 1,017.9 billion and profit after tax of VND 9.1 billion, down 13.5% and 76.9% respectively over the same period last year.

Accumulated in the first 9 months of the year, Bamboo Capital recorded VND 184.8 billion in profit after tax, completing 28.4% of the 2023 profit plan.

The revenue structure in the third quarter of 2023 of the enterprise recorded that the real estate segment decreased to only 22.6%; the energy segment increased from 28.7% to 31.9%; the construction - infrastructure segment also increased its proportion from 27.8% to 31.7% and the financial services - insurance segment increased its proportion from 6.8% to 9%.

Notably, the electricity sector with electricity output in Q3 reached 197.5 million kWh, up 28.3% over the same period. The growth momentum came from the Phu My Solar Energy Field project.

By the end of the third quarter of 2023, Bamboo Capital's total assets reached VND 42,976.6 billion, a slight decrease of 1.9% compared to the beginning of 2023.

BCG Energy shares “increase in price” 85% before IPO

Recently, Bamboo Capital Group Joint Stock Company announced the Board of Directors' Resolution on asset swapping to secure the credit of its subsidiaries including Duong Phong Energy Joint Stock Company and Transport and Industrial Development Investment Joint Stock Company (Tradico) arising at Nam A Commercial Joint Stock Bank (NamABank).

Specifically, Bamboo Capital's Board of Directors agreed to use 5.6 million shares directly held at BCG Energy JSC - a subsidiary in which Bamboo Capital holds over 82% of capital - to replace 7.43 million other BCG Energy shares owned by individuals as collateral for the credit arising at NamABank.

Of which, 1 million BCG Energy shares owned by Bamboo Capital will be the replacement asset for 1.43 million BCG Energy shares owned by Mr. Pham Minh Tuan, Vice Chairman of the Board of Directors and Deputy General Director, as collateral for Duong Phong Company's loan at the bank.

Similarly, the remaining 4.6 million BCG Energy shares directly held by Bamboo Capital were used as assets to replace the 6 million BCG Energy shares held by Ms. Hoang Thi Minh Chau, former Deputy General Director in charge of finance, as collateral for the NamABank credit facility with Tradico.

Notably, in both of these collateral swap transactions, the unit price offered by the bank for each BCG Energy share increased from VND 10,000/share to VND 18,500/share, equivalent to an 85% increase in valuation.

By nearly doubling the share valuation, NamABank agrees to reduce the amount of BCG Energy shares mortgaged at the bank.

The fact that BCG Energy shares used as collateral were nearly doubled in value by the bank took place in the context that Bamboo Capital had announced plans to IPO the company in charge of this energy sector but could not carry out the plan as planned.

Specifically, sharing at the meeting with investors to update the business situation in the first 6 months of this year, Mr. Pham Minh Tuan, Vice President of Bamboo Capital, said that over the past year, the company has worked with partner KPMG Singapore regarding the IPO of the renewable energy sector managed by BCG Energy.

According to the plan, the company will complete the documents and then submit them to UPCoM in the second quarter of this year. Along with that, Bamboo Capital will work with strategic investors to raise capital. The company expects that the completion of policies and legal corridors related to power projects will support the group in raising capital from investors.

Regarding the financial situation of BCG Energy, according to a summary report sent to the Hanoi Stock Exchange (HNX), by the end of June this year, the consolidated equity of this enterprise reached nearly VND 7,036 billion, an increase of 12% compared to a year ago. The debt/equity ratio at the same time was 1.8 times, also down from 2.36 times in June 2022.

With the above coefficient, BCG Energy has a debt of about 12,665 billion VND and total assets of 19,700 billion VND.

However, the energy company's consolidated after-tax profit in the first half of this year reached less than VND8.5 billion, down more than 97% compared to the same period in 2022.

BCG Land's profit dropped 84% before being listed on UPCoM

At the end of August, the Vietnam Securities Depository and Clearing Corporation (VSDC) granted the first securities registration certificate to BCG Land. The company is currently continuing the procedures to trade on Upcom.

The consolidated financial report for the third quarter of 2023 shows that BCG Land JSC achieved net revenue of VND 230 billion, down 11% over the same period. Cost of goods sold and expenses increased, so the company reported a profit after tax of VND 11.7 billion, down 65%.

According to BCG Land, in the quarter, revenue from handing over real estate projects decreased compared to the same period last year, which was the main reason for the above-mentioned profit decline.

In the revenue structure, the main contribution was from real estate transfers and real estate sales contracts, reaching VND219 billion, down 10% compared to the same period. In addition, the company also had revenue from providing hotel, tourism and related services, as well as revenue from project management and development consulting, but both recorded a decrease.

In addition, financial revenue also contributed significantly to BCG Land's total revenue in the quarter with more than VND 169 billion, up 36% over the same period, mostly from interest receivable under investment cooperation contracts.

In the first 9 months of the year, BCG Land achieved net revenue of VND 583 billion and profit after tax of VND 136 billion, down 32% and 76% respectively compared to the same period in 2022.

As of September 30, BCG Land's total assets reached VND12,537 billion, up 8.5% compared to the beginning of the year, with the largest proportion being receivables of VND6,358 billion, down 9.8%.

Of the above receivables, nearly VND4,795 billion are long-term receivables under business cooperation contracts (BCC) with partners to cooperate in developing real estate projects in Ho Chi Minh City, Hoi An, Quy Nhon, Quang Ngai, and Dak Nong.

BCG Land's inventory value as of September 30 was VND3,505 billion, up 35% compared to the beginning of the year, mainly due to the additional cost of unfinished production and business of the Con Bap Eco-tourism Area project (or Hoi An D'or project) of nearly VND1,055 billion. The company also recorded the unfinished basic construction cost of this project as of September 30 as nearly VND570 billion.

According to information from Bamboo Capital (parent company of BCG Land), this project has currently handed over 56 out of a total of 202 shophouses.

In addition to Hoi An D'or, other real estate projects in inventory of BCG Land include Malibu Hoi An (nearly 2,155 billion VND), King Crown Village project (135 billion VND), Casa Marina Resort project (137 billion VND),...

Of which, the Malibu Hoi An project has handed over 222 units out of a total of 675 condotel units. This is also the project with the largest inventory of BCG Land as of September 30, down 7.2% compared to the beginning of the year. As of September 30, BCG Land set aside a provision for inventory depreciation of more than VND75 billion for this project.

On the other hand, as of September 30, BCG Land's short-term prepayments from buyers were VND1,553 billion, up 69% compared to the beginning of the year, mostly from customers of the Hoi An D'or project (VND797 billion) and the Malibu Hoi An project (VND728 billion).

Regarding debt, BCG Land's outstanding financial loans as of September 30 were VND3,338 billion, down 11% compared to the beginning of the year. Of which, VND2,500 billion is bond debt from the bond lot coded BCLCH2124001, issued from March 2021 and due in March 2026.

In fact, according to the old plan, this bond lot had a term of 36 months, and would mature in March 2024. However, in early August, BCG Land negotiated with the bondholders and was approved to extend the term by 2 years, thus moving the maturity date to March 2026 as above.

Bamboo Capital leaders successfully "closed profits" on 3 million shares

The Ho Chi Minh City Stock Exchange has just announced that Mr. Pham Minh Tuan, Vice Chairman of the Board of Directors and Deputy General Director of Bamboo Capital Group Joint Stock Company, successfully sold 3 million BCG shares on November 7 and 8 through negotiation. Mr. Tuan's purpose of selling shares is to arrange personal finances.

After this deal, Mr. Tuan only holds 3.1 million BCG shares, accounting for 0.59% of charter capital. Temporarily calculating with the closing price on November 8 of 8,420 VND/share, the amount of money that this leader earned was about 25.2 billion VND.

Previously, Ms. Nguyen Xuan Lan, wife of Mr. Nguyen Thanh Hung, Vice Chairman of the Board of Directors and Deputy General Director of Bamboo Capital, registered to sell 2 million BCG shares but then only successfully sold 80,000 shares from September 7 to October 6 through order-matching transactions.

TM (t/h)

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