Viglacera officially listed VGC 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.