In the second quarter of 2022, Bamboo Capital's profit after tax is more than 354 billion, and sales are 881 billion

DNHN - Bamboo Capital Joint Stock Company (HoSE: BCG) has released its consolidated financial results for the second quarter of 2022. As a result, consolidated net sales reached VND 881 billion in the second quarter of 2022, while profit after tax reached VND 354 billion, increasing 8.2 per cent and 12.4 per cent, respectively, over the same period.

BCG earned VND 2,133.9 billion in sales and VND 877.1 billion in profit after tax in the first six months of 2022, rising 47.4 per cent and 81.5 per cent, respectively, over the same time in 2021. BCG's income in the first six months of 2022 is mostly derived from three key activities: construction - infrastructure provides VND 737,6 billion, real estate contributes VND 543.4 billion, and renewable energy contributes VND 584. 7 billion, while manufacturing contributes 166.3 billion.

The construction-infrastructure business was a consistent source of revenue, accounting for 36.26 per cent of BCG's revenue via construction projects and quarrying operations. Renewable energy produces consistent cash flow and adds increasingly to BCG's revenue structure. BCG has recorded 27.4 per cent of sales from the energy category since the beginning of the year, which is 20% more than the end of 2021. Meanwhile, income from project handover was reported in the finished real estate category. In the second quarter, King Crown Village accounted for 25.4 per cent of revenue.

BCG issued 57 million individual shares to strategic investors in the second quarter of 2022, raising the total charter capital to VND5,033 billion. As a result, equity has risen by 64.1 per cent since the beginning of the year, from about 8,350 billion VND to 13,701 billion VND as of June 30, 2022.

BCG's total assets reached VND 44.4 trillion as of June 30, 2022, a 17.7 per cent rise from the start of the year. BCG's total assets grew primarily owing to a rise in long-term investment assets as a result of the completion of real estate and renewable energy projects in the first half of the year. Total debt was reduced with a 4.5 per cent rise. This demonstrates that asset quality is under control, and BCG is focused on reducing outstanding loans to improve financial health and reduce risks for companies and investors.

BCG's financial leverage metrics have improved significantly as a result of efforts to enhance capital and reduce debt. The total debt-to-equity ratio has decreased from 3.51 times at the end of 2021 to 2.24 times as of the end of June this year. As a result, BCG is getting near to its aim of lowering this ratio to less than 2.0 times, preferably 1.0 - 1.5 times.

Furthermore, the debt-to-equity ratio fell to 1.04, indicating that financial risks have been lowered to a safe level. This is a strong indication that BCG's owners and investors may look forward to healthy future improvements. In the next phase, BCG expects to continue focusing on mobilizing capital from local and international markets to return the debt ratio indicators to the desired level by the end of 2022 or the beginning of 2023.

With the real estate segment not being particularly exciting in the first six months of the year due to big projects like Malibu Hoi An and Hoian d'Or all experiencing revenue drops in the third and fourth quarters, BCG completed nearly 30 per cent of the annual revenue plan and 40 per cent of the profit after tax plan, ending the second quarter of 2022.

In general, there have been hurdles in the business environment and macroeconomic swings that have made business tough in the past, and BCG is no exception, but the amount of effect is minimal. The firm continues to stick to the business plan and anticipates that the second half of the year will be a period of acceleration and true growth, fulfilling the plan established at the General Meeting of Shareholders. Furthermore, BCG opted to spend resources in 2022 on increasing output and business while prioritizing risk reduction, particularly financial risk reduction.

Xuan Cuong