On the morning of April 26, TTC Land (HoSE: SCR) held the 2021 Annual General Meeting of Shareholders to discuss the 2021 plan, development strategy to 2025, and elect additional members of the Board of Directors.
The profit plan for 2021 is increased by 12%
In 2021, TTC Land sets a target of 1,502 billion dong in revenue and 230 billion dong in pre-tax profit, up 64 percent and 12 percent year-on-year, respectively.
In the period 2020-2025, the company expects net revenue to grow by an average of more than 30% per year, from VND 918 billion in 2020 to VND 3,620 billion in 2025, equivalent to an increase of nearly four times after 5 years. Profit before tax will grow at an average rate of 39% / year, from 205 billion VND in 2020 to 1,054 billion VND in 2025.
TTC Land will focus on 3 main businesses: civil real estate, real estate for rent and distributed business. In which, the main business segment is civil real estate, contributing about 70-85% of the profit structure. Real estate for rent will contribute 10-15% and distributed business will contribute 5-10%.
|View of TTC Land’s 2021 annual shareholder meeting.|
Development of 11 projects with total land fund of 32 ha
General Director Vo Quoc Khanh said the company is developing 11 projects with a total land bank of about 32 hectares, including Carillon 7, TTC Plaza Duc Trong, Panomax, Charmington Iris, Charmington Tan Son Nhat, Charmington Dragonic, Charmington Tamashi, Charmington Golf & Life, Cu Chi, Carillon 6 and Jamona Cau Tre.
According to Mr. Khanh, the projects are mainly concentrated in Ho Chi Minh City, Da Nang and Lam Dong. By 2025, the company will develop more land funds in the satellite towns of Dong Nai and Long An. The company also takes advantage of the group’s advantages to develop a residential and resort land fund in Phu Quoc.
Specifically for civil real estate, the time to complete a project takes about 3-4 years. The company will focus on the areas with the above existing projects, in which more focus on projects with clear 1/500 legal, effective IRR of more than 20%.
For the rental real estate segment, the company focuses on the inner city area of Ho Chi Minh City or the center of other provinces, as well as prioritizes clean land projects.
For the distributed real estate segment, TTC Land aims to invest in new products in the inner city of Ho Chi Minh City; in which, focusing on exploiting houses from the people and promoting different competitive advantages. The General Director added that in the future, 4.0 technology will be applied to gradually transform digital in this segment. Expanding this new sales and distribution channel, in addition to increasing revenue, it also creates a large database (customer list) to have a more comprehensive picture of supply and demand of the market.
Adding more about the development of land fund, Chairman Nguyen Thuy Van said that the land fund in Ho Chi Minh City is not much, so the company is oriented to the surrounding area. Next time, TTC Land plans to M & A a company owning 300 hectares of Phu Quoc land. The leader believes that this is a potential market for the next 5-year plan.
No dividend for 2020
Last year, TTC Land recorded a decrease of 11% in net revenue to over VND 918 billion and after-tax profit decreased by 30%, to VND 194 billion mainly due to the negative influence from the Covid-19 translation. In addition, SCR has restructured operations, liquidated investments and projects that are not in line with the future development orientation, creating revenue streams to focus on developing highly profitable projects.
The Chairman explained that the revenue in 2020 will only reach 45% of the plan because the revenue from Carillon 7 has not been recorded at about 1,200 billion VND. Real estate transfer revenue structure still accounts for the largest 75% of revenue from Jamona, Cariilon 5 projects … while rental revenue from commercial floors accounts for 12% of revenue
Profit after tax decreased by 30% but still exceeded 72% of the plan, according to Ms. Van, thanks to promoting the restructuring of unsuitable projects, such as selling shares in Tin Nghia A Chau or Kim Thanh Company.
With the above result, the Board of Directors plans to submit to the General Meeting of Shareholders for approval of the plan of no dividend payment for 2020. This retained earnings will be added to the capital source to invest in business operations, increase accumulated value and support. The company overcame a difficult period in the real estate market.
Election of 3 additional members of the Board of Directors
At the meeting, the company dismissed 4 members of the Board of Directors for Mr. Vu Quoc Thai, Bui Tien Thang, Pham Phu Tuan and Ms. Tran Thien Thanh Thuy according to the application to resign in early April. Meanwhile, the Board of Directors presented to shareholders for the reduction of the number of members of the BOD from 6 to 5 members.
|TTC Land elected 3 new members of the Board of Directors.|
Therefore, the company elected 3 new members of the Board of Directors, including Mr. Vo Quoc Khanh (currently CEO of TTC Land), Hoang Manh Tien (member of the Board of Directors of TTC Hospitality) and Ms. Tran Diep Phuong Nhi (Deputy General Director. Toan Hai Van).
Source: ndh.vn – Translated by fintel.vn