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2017 plans approved at FLC Group's AGM

Released at: 15:35, 25/04/2017

2017 plans approved at FLC Group's AGM

Photo: FLC Group

Business targets and other matters secure shareholder approval at April 24 AGM.

by Ngoc Lan

At its annual general meeting (AGM) on April 24 in Hanoi, FLC Group shareholders approved a plan targeting pre-tax profit of VND1.23 trillion ($54.2 million) this year on revenue of VND13 trillion ($572.7 million). All other plans were also approved.

Major achievements in 2016

The FLC Group had a successful 2016, with revenue from its real estate business reaching VND5.87 trillion ($258.6 million).

It posted consolidated revenue of VND6.66 trillion ($302.7 million), an increase of 11 per cent against 2015, and pre-tax profit of VND1.33 trillion ($60.4 million), up 15.4 per cent. It also contributed VND361 billion ($16.3 million) to the State budget.

As at December 31, total assets had increased 80 per cent year-on-year to VND17.91 trillion ($814 million) while owner equity was VND8.4 trillion ($381 million). The Group plans to pay a 10 per cent dividend, comprising 3 per cent in cash and 7 per cent in shares.

“From 2017 onwards, dividends will be higher every year,” FLC Group Chairman Trinh Van Quyet told the AGM.

Under the approved plan, revenue is to nearly double this year to VND13 trillion ($591 million) while pre-tax profit is to be VND1.23 trillion ($56 million).

FLC is one of the most liquid tickers on the stock market. It raised VND1.81 trillion ($82.3 million) from share issuances to existing shareholders, increasing its registered capital to VND6.38 trillion ($290 million) on August 19.

Cable car to Son Doong Cave

Asked about speculation over the construction of a cable car to Son Dong Cave at Phong Nha-Ke Bang National Park in central Quang Binh province, Mr. Quyet affirmed that FLC has been researching the project at the provincial government’s request.

Due to difficult access, just 20 explorers can reach the cave on any day. “Quang Binh cannot effectively tap Son Doong Cave without better access,” Mr. Quyet noted. “No matter how beautiful the diamond may be, no one can see it if it remains lying in the sea.”

Even if FLC is permitted to build the cable car, it would not reach the entrance of the cave. The terminus would still be several kilometers away, Mr. Quyet explained. “Only when permission is granted and all papers are completed will FLC invest [in the cable car project]. Otherwise, we will not invest in it.”

Possible merger between FLC and FLC Faros

Regarding the low market price of FLC shares, Mr. Quyet said the stock is undervalued. The fall in share price can be attributed to shareholders massively selling or buying shares without caring about the company’s fundamentals, he explained, recommending that shareholders have confidence in the company’s value.

Mr. Quyet said he will continue to buy FLC shares this year. Further, he will hold negotiations with a number of funds and institutional investors who intend to make long-term investments in FLC shares so that major shareholders will together hold at least 50 per cent in the long term.

The Chairman said that FLC Group intends to merge with FLC Faros Construction JSC (ROS), in which Mr. Quyet holds nearly 70 per cent. The merger plan will be submitted for consideration at an extraordinary general meeting.

Casino project on Ngoc Vung Island

Recognizing the huge potential, FLC will continue to invest in Quang Ninh province, including a 60-story tower. It is seeking permission from Quang Ninh authorities to build a casino on Ngoc Vung Island in the Van Don Special Economic Zone before submitting the project to the government, Mr. Quyet said.

“FLC was initially assigned by the Quang Ninh People’s Committee to be the investor of this project,” he said. “With the aim of sharing the opportunity with a trusted partner, we have suggested the FLC Faros Van Don Investment and Development Company, wholly owned by FLC Faros, be the investor in the project.”

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