In the past 2 months, along with the recovery of the market, Viettel’s “them” stocks also increased by more than 40%. In detail, VGI stock has gained strongly from 19,000 dong / share – 1 year bottom to 30,700 dong / share on May 20 session, up by 62%; VTP increased by 47.4% from VND 85,500 / share to VND 126,500 / share; CTR increased from VND 27,300 / share to VND 45,900 / share, increased by 68% or VTK increased by 45% to VND 25,700 / share.
In addition to the overall recovery of the market, positive first-quarter business results significantly supported the increase of this stock group.
Viettel International Investment Corporation (Viettel Global, UPCoM: VGI) announced first-quarter profit after tax of VND 902 billion, 14 times higher than the same period last year.
The company’s net revenue reached 4,304 billion VND, up 13.4%. Gross profit increased by 23% to 1,634 billion dong. Profit margin improved from 34.3% to 37.2%. Viettel Global said that the business results of most markets were better than the same period, contributing 602 billion dong of consolidated profit, notably Mytel – associated companies in Myanmar, Metfone in Cambodia and Natcom in Haiti.
At the same time, financial revenue reached VND 1,078 billion, 3.4 times higher than the same period mainly due to the exchange rate difference of VND 741 billion, the same period last year was only VND 8 billion. The exchange rate issue also made the company’s financial cost increase by 29% to VND 1,006 billion.
Therefore, although the administrative expense nearly doubled to VND 889 billion when making provision for doubtful debts of VND 370 billion, profit still increased sharply. The company said normal appropriations are made in the second quarter.
Viettel Post Joint Stock Corporation (Viettel Post, UPCoM: VTP) reported Q1 business results with net revenue of 2,460 billion dong, up by 79% YoY. However, gross profit margin decreased from 11.2% to 7.3%, resulting in a 26% increase in net profit to VND 97 billion. Labor and outsourcing expenses of the unit increased significantly with 15.7% and 13.8% respectively.
Viettel Construction Corporation (Viettel Construction, UPCoM: CTR) recorded revenue of 1,380 billion dong, up 15% over the same period last year. Gross profit margin improved from 4.9% to 6.3% and expenses fluctuated insignificantly. Profit after tax reached VND 50.7 billion, up 35.5% over the same period last year.
Plan for 2020 growth
Under the influence of the Covid-19 epidemic, many businesses planned to reduce or go sideway in 2020, while Viettel Group still set a growth target.
Viettel Global’s Board of Management assessed 2020 as a promising year to witness the rapid development of technology, especially the field that uses AI technology, 5G technology and data connection and exploitation. World telecommunications continues to shift strongly from voice to data. Revolution 4.0 boom in IoT development, online payment, social networking, digital content services …
Therefore, VGI leaders determined that this is an opportunity for the company to proactively promote solutions for telecommunications development and telecommunications expansion, build an integrated product chain to support growth and customer retention. The company has set a target of increasing 5 million subscribers in 2020, revenue growth of 10-15% compared to 2019, consolidated profit before tax positive (in 2019 is positive 12 billion and in 2018 is negative 150 billion). Viettel Global’s cash inflow from overseas markets is higher than 2019.
Meanwhile, Viettel Post intends to set the target of revenue of this year at VND 12,375 billion, an increase of 58% compared to 2019. Postal businesses aim to become a logistics technology company through business policies. flexibility such as diversifying products and delivery services, promoting sales expansion into high-profit products, focusing on developing the southern market, especially Ho Chi Minh City and stimulating pepper. up to 70% of the rural population.
Viettel Construction with the target of revenue of VND 6,000 billion in 2020, an increase of 22.2%; Profit before tax was VND 253.9 billion, up 10.5% compared to the previous year. The goal is that by 2025, revenue will increase to VND 11,500 billion and profit before tax of VND 500 billion. In addition, the company sets a revenue target outside Viettel Group that will account for over 30% of total revenue in 2025 (only 6.5% in 2019).
Viettel Construction’s leaders set a vision to become the investor, operate and provide the smartest and most efficient works, promoting the industrial revolution 4.0 for each enterprise and household. In the new period, Viettel Construction aims to reduce the proportion of construction segment with low profit margin to shift to infrastructure leasing segment with higher profit margin, thereby aiming to become the No. 1 TowerCo investor. Vietnam in 2025. In 2019, the new leasing infrastructure segment accounts for 0.28% of total revenue, not fulfilling the plan because the network infrastructure of the network operators has ensured, the procedure for acquiring infrastructure of rivals external cooperation is complicated and has not implemented the policy of acquiring infrastructure of Viettel Group.