Despite the lack of investor interest in the May 2024 offering, the State Capital Investment and Business Corporation (SCIC) continues to offer the entire block of shares in JIC.CO at a price equivalent to VND 72,123 per share.
Investor in numerous projects in Can Tho.
SCIC has just offered 864,942 shares of Can Tho City Investment and Construction Joint Stock Company (JIC.CO) for auction, representing 41.51% of its charter capital. The starting price for the entire lot of shares is VND 62.39 billion, equivalent to VND 72,132 per share.
The auction is scheduled to take place on July 17th, if conditions permit. Previously, in May 2024, this auction could not be held due to a lack of interested investors.
JIC.CO is known as a joint-stock company transformed from a state-owned enterprise with over 30 years of experience in the construction sector. JIC.CO's business activities focus primarily on the construction of civil engineering works (industrial works, irrigation works, culverts, dams, canal dredging); civil construction; and public works construction…
In addition, JIC.CO also operates in the real estate business. The company is currently implementing the JIC.CO Housing and Office Building Project at 469A, Cach Mang Thang Tam Street, An Thoi Ward (Binh Thuy District, Can Tho City). Simultaneously, the company has completed three real estate projects: the Residential and Resettlement Area Project in Ward 3, Vi Thanh Town (now Vi Thanh City, Hau Giang Province); the Renovation, Upgrading, and Expansion Project of the Commercial Center in Vinh Thuan Tay Commune (Vi Thuy District, Hau Giang Province); and the Residential and Resettlement Area Project at the Administrative Center of Vinh Thanh District (Can Tho City).
Currently, the company manages and utilizes 20 land plots in Can Tho City, with a total area of 1,495.95 m2. These are all urban residential land plots designated for long-term use, part of the JIC.CO Housing and Office Building Project. The project's purpose is to provide housing for JIC.CO's employees and is not for commercial purposes. This project was initiated before JIC.CO's privatization and remains stalled, with incomplete land clearance pending the conclusion of the inspection team.
Regarding the shareholder structure, only SCIC is an institutional shareholder and holds the largest stake in JIC.CO, while the remaining 40 are individual shareholders. The three largest shareholders (holding over 5% of the charter capital) are Nguyen Diep Hoai Phong (14.14%), a member of the Board of Directors and Deputy Director of Business; Vu Hong Ngoc (7.66%), a member of the Board of Directors; and Tran Van Tuong (5.83%).
Hidden potential
In addition to owning the right to use many land plots in Can Tho, published information shows that JIC.CO's business operations have been quite stable in recent years.
As of the end of 2023, the company had total assets of VND 109.7 billion. Notably, the company had VND 85 billion in short-term financial investments. These are short-term deposit contracts with maturities ranging from 6 months to 1 year, held at various banks. Maintaining a high proportion of short-term assets gives JIC.CO a secure position to finance its short-term debt.
Regarding capital sources, JIC.CO's equity as of December 31, 2023, reached VND 30.92 billion, of which the owner's contributed capital remained unchanged during the 2021-2023 period at VND 20.84 billion. As of December 31, 2023, the company's undistributed after-tax profit reached VND 4.6 billion.
Thus, JIC.CO has total liabilities of approximately 79 billion VND, but these are recorded in the Reward and Welfare Fund, long-term debt, etc. With a fairly "excess" amount of cash, the company does not use borrowed capital for operations, showing that the company has financial independence, which reduces the debt repayment pressure on JIC.CO compared to other businesses in the same industry.
In 2023, JIC.CO recorded net revenue of VND 46 billion and after-tax profit of VND 3.1 billion, corresponding to a return on equity (ROE) of 9.95%. It is known that all of the 2023 revenue came from construction activities.
JIC.CO reported that net revenue in 2023 decreased by 25.2% compared to 2022 due to the frozen real estate market and difficulties in the construction industry. The cost of goods sold continued to account for a large portion of net revenue in previous years, resulting in a low gross profit margin.
According to JIC.CO, over the next 3-5 years, public investment will be a particularly important area of focus, with the government concentrating resources on infrastructure projects to stimulate growth and support economic recovery. This is a favorable factor for the company's core business.
In addition, JIC.CO is also proactively taking the lead in the real estate sector, planning to participate in auctions of state-managed public land and properties in Can Tho City; approaching and seeking land plots and projects where investors are facing financial difficulties for mergers and acquisitions (M&A), and constructing apartment complexes, commercial and service areas, and office buildings for rent.
Source: https://baodautu.vn/scic-khong-ha-gia-khi-chao-ban-co-phan-tai-jicco-d219425.html
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