Viettel to divest from three affiliates
Viettel to divest from three affiliates
Viet Nam's biggest telecom firm Viettel plans to divest capital in three affiliates to over 50 per cent of capital this month and next month.
They are Viettel Post Joint Stock Corporation (VTP), Viettel Construction Joint Stock Corporation (CTR) and Viettel Consultant and Design Joint Stock Company (VTK).
VTK is trading on the Unlisted Public Company Market (UPCoM) with a market price of around VND24,000 per share. Its market capitalisation totals nearly VND100 billion (US$4.3 million).
The company is the designer of the five North-South optical fiber lines with a total length of over 8,500km and nearly 190,000km of branched fiber optic cable lines.
VTK can take advantage of Viettel’s ecosystem to expand business activities along the border. By the end of 2019, the company had provided services in six foreign markets of Laos, Cambodia, Mozambique, Cameroon, Haiti and Peru.
The company targets to reach revenue of VND200-350 billion by 2025, as well as pre-tax profit of VND30-40 billion.
It plans to maintain a stable dividend rate of 10-20 per cent per year in the 2020 - 25 period. This year, the company expected revenue to touch VND136 billion, with profit of over VND16 billion and dividend payout rate of 15-20 per cent.
CTR is trading on UPCoM, with a market price of more than VND41,000 and market capitalisation of nearly VND3 trillion.
This is the largest operator of the infrastructure network in Viet Nam. In 2019, while other units in the same industry had declining business results, CTR grew strongly thanks to the promotion of construction activities.
Last year’s consolidated revenue and post-tax profit reached VND5 trillion and VND181 billion, respectively, up 18 per cent and 23 per cent year-on-year.
In the first six months of 2020, its revenue reached VND2.7 trillion, up 11 per cent year-on-year. Post-tax profit touched VND98.4 billion, up 28 per cent against last year.
CTR aims to expand the provision of construction operation services in foreign markets, developing solutions in smart energy for telecommunications as well as other industries. It expected revenue to reach VND10 trillion to VND11.4 trillion by 2025, and pre-tax profit to reach VND300-500 billion.
VTP is also trading on UPCoM with a market price of more than VND104,000, equivalent to market capitalisation of about VND8.7 trillion.
The company focuses on three main business segments of delivery services, logistics services and trade and services.
It recorded very strong growth in both revenue and market share and holds 21 per cent market share in the delivery market. The unit owns a nationwide delivery network of 2,200 post offices, 827 shops and 469 postal service points.
In the last five years, Viettel Post's revenue maintained a high growth rate of over 40 per cent per year. In 2019, net revenue from selling goods and providing services reached VND7.8 trillion, posting a growth of 58.7 per cent. This figure is higher than the average growth of companies in the delivery industry of 49.4 per cent and outstripped the growth of 8.7 per cent of the transport and warehousing industry.
In the 2015-19 period, the after-tax profit growth rate averaged 59 per cent per year. Post-tax profit in 2019 reached more than VND380 billion, marking a growth of 36.2 per cent compared to 2018. This growth rate is higher than that of the delivery industry of 33.4 per cent and many times higher than the figure for the transportation and warehousing industry of 7.6 per cent.
In the first six months of 2020, as many businesses were affected by the COVID-19 pandemic, Viettel Post still recorded positive results in production and business activities. Its net revenue reached nearly VND6.8 trillion, up to 125.3 per cent year-on-year. Post-tax profit rose by 21.2 per cent to touch nearly VND200 billion.
The company aims to become the top delivery company in Viet Nam by 2025 with revenue between VND18-23 trillion, and pre-tax profit of VND1.2-1.4 trillion.
