Viglacera officially listed VGC on HOSE

03:08 | 29/05/2019

On 29th May 2019, Viglacera Corporation – JSC officially received the decision on listing shares on Ho Chi Minh Stock exchange (HoSE) and 29th May 2019 is also the first trading day of VGC shares on HoSE.

With large scale of operation, HoSE is currently the most open, transparent and efficient stock exchange. Following the resolution of shareholder committee, today 448.350.000 VGC shares of Viglacera Corporation – JSC are official listed on HoSE. This is a good opportunity to call for capital, create more resources for the stable and sustainable development of the Corporation, but also originates a high demand for a transparent, open and more complying management.

Mr Nguyen Vu Quang Trung – Deputy General Director responsible for executive board of HCM Stock Exchange give the Listing Decision to representative of Viglacera Corporation – JSC – Mr Luyen Cong Minh – President of the Corporation Management Board 

Joining this special event, we had Mr Bui Pham Khanh – Deputy Minister of Construction, Mr Luyen Cong Minh – President of Viglacera Corporation ‘s Board of Management, Mr Nguyen Anh Tuan – CEO of Viglacera Corporation, representatives of Investors and Funds, Mr Nguyen Vu Quang Trung – Deputy General Director responsible for executive board of HCM Stock exchange, and representatives of the Department ‘s Management board. The ceremony was solemnly and successfully organized.

Deputy Minister of Construction – Mr Bui Pham Khanh spoke at the ceremony. He believed that with current operation and market position of Viglacera, the Corporation will develop stably and sustainably, the share value of Viglacera will raise and bring lots of benefit to investors.

Mr Luyen Cong Minh – President of the Corporation‘s BOM did the clanging gong rite 

With the opening reference price of 19.900 dong per share, which equal to the market capitalization of approximately 9.000 billion dong, the fluctuation limit of the share in the first trading session on HoSE was 20%, In the first trading session, there was time the price went up to 21.300 dong per share, which increased strongly compared to the reference price. In the first day on HoSE, VGC shares were traded with total quantity up to 2 million shares.

With good financial base, the pioneer position in Building material industry and huge capability in implementing huge real estate projects, VGC are expected to become a blue-chip on HoSE.

Positive movements 

In Quarter I of 2019, Viglacera continued to create impressive results with two-digit growth rate. The financial report of the Corporation shows that the revenue achieved 2.269 billion dong, profit after tax reached approximately 180 billion dong, which in turn were 24% and 51% higher than the same period last year. The dividend of the Parent company is 159 billion dong, which increased 54%.

As estimated by investors, the strengths of Viglacera are huge production capability especially in material building and real estate industry (industrial zone infrastructure, urban area and so on), having lots of valuable assets and positive financial structure & cash flow.

In building material industry, up to now, VGC accounts for 36% of domestic building glass production capability with 2 factories manufacturing float glass, 1 factory manufacturing energy saving glass and 1 factory manufacturing after-glass products. The total volume of glass manufactured within a year is approximately 60 million m2.

The Corporation also accounts for 11% of Sanity ware, 3% of ceramic tile and 12% of granite tile production capability. Each year, Viglacera provides the market with more than 1.5 million sanity ware products, 12,5 million m2 cotto tiles, 28,7 million m2 ceramic-granite tiles, 353 million building bricks and almost 4,1 million m2 roof tiles.

In the industrial zone infrastructure field, VGC owns 12 industrial zones with the total area up to 3177,5 ha, much larger than other enterprises in the same industry (KBC, ITA, LHG and so on) in which 717 ha was leased to various big partners from Korea and Japan such as Samsung, Canon, Orion, Sumitomo...

VGC also owns 12 urban areas, many housing and leasing office projects with the total area of 201 ha. Lots of projects are located at advantaging locations in Hanoi and are highly evaluated about the potential to generate profit.

The financial report of VGC showed that the total assets of Viglacera until end of Quarter I – 2019 was 17.155 billion dong, which increase 600 billion dong compared to the beginning of the year.

Maintain the leading position in a competitive market 

Having large operation scale and a stable position in the market, however, as many other enterprises in building material manufacturing and real estate field, Viglacera is having to face lots of challenges from the market originating from the slowing down of the whole industry and the intensive competition of the market.

Therefore, Viglacera is in the process of moving forward, and effectively restructuring. When the efficiency of using assets and capitals of VGC is improved, it’s certain that the business efficiency of the Corporation will keep rising up in the future.

One of the highlight in the effort to restructure the Corporation is divesting in businesses which are not effective and focus on optimizing cost and investing on products bringing high value to the company. For example, My Xuan porcelain factory and Phu My super-white glass factory were invested to create competitiveness and a special product line for VGC in the long run. For another example, the roof tile products were restructured by decreasing volume of tradition roof tile products and instead of that produce more adobe bricks, tegulars, sheathing boards and other high-value products.

One noticeable achievement of Viglacera in 2019 is in the industrial zone real estate field. A plentiful amount of FDI and the wave of moving production into Vietnam are factors which strengthen the industrial zone leasing activity of Viglacera Corporation. The industrial zone leasing and managing revenue in 2018 was recorded to increase 44% and 54% compared to 2017 and the revenue is expected to get a lot better in 2019. The gross margin of the whole field also reached to a very high level – 40%. Viglacera ‘s industrial zones such as extended Yen Phong, Dong Van IV, Phu Ha … are all located at locations which are convenient for transportation, have fully equipped infrastructure so they all have potential to be filled up very soon. The leasing price could increase in 2019 due to the increase in demand. Together with the positivity in industrial zone leasing industry, the social housing and worker housing projects in industrial zones are also predicted as positive in sales.

Other civil real estate projects of Viglacera are predicted to continue generating profit because the locations are convenient for accommodating and leasing offices are often located at the center areas of cities.

With Viglacera’s current effort to restructure and having strategic investors owning a huge quantity of shares in VGC, investors all predicts that the efficiency of using assets, capitals and operation structure of CGV will have positive movement in the future. Besides, having a huge operation scale, market leading position and valuable real estate, VGC is evaluated to have huge attractiveness to investors, especially on HOSE.

Some pictures of the event:

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