AsemconnectVietnam - Winning many projects in 2023 has brought positive results to Cienco4 Group Joint Stock Company (stock code C4G - UPCoM) with a record profit in Q2/2024 and still has a lot of savings.

Construction and installation sector flourishes, profit in Q2/2024 reaches record
According to the recently released financial report, in Q2/2024, Cienco4 Group's net revenue reached VND1,027.1 billion, up 66.4% over the same period. Of which, revenue from construction contracts grew impressively by 88% over the same period, to VND899 billion, accounting for 88% of revenue. Next is BOT toll revenue with VND94 billion, up 31% over the same period. Gross profit increased by 19.2% to VND134.8 billion.
This period, Cienco4's financial revenue decreased by 41% to VND22 billion due to a decrease in interest on deposits and loans. However, thanks to a reduction in interest expenses (down nearly 40%), the Group's financial expenses also decreased by 33.8% to VND57.1 billion. Meanwhile, business management expenses increased by only 11% to VND31 billion.
As a result, the Company's after-tax profit in the second quarter of 2024 increased by 87.2% over the same period, to more than VND60 billion. This is also Cienco4's highest quarterly profit since registering to trade shares on the stock market.
In the first 6 months of the year, the Company's net revenue reached VND1,534.3 billion, up 42.4% and after-tax profit reached VND101.3 billion, up 38.8% over the same period.
This year, Cienco4 sets a revenue target of VND4,500 billion and after-tax profit of VND250 billion. Thus, after the first 6 months of the year, the Group has achieved 40% of the profit plan.
In terms of asset size, as of the end of June 2024, Cienco4's total assets reached VND9,668 billion, a slight increase compared to the beginning of the year. Cash, cash equivalents, and term deposits are about VND575 billion.
Inventories increased by 15% to VND916 billion, mainly due to unfinished production and business costs from projects such as Ben Thanh Suoi Tien project (VND154.5 billion), Phan Thiet - Dau Giay project (VND81.3 billion), Tan Son Nhat airport renovation project (VND51.5 billion)...
As of June 30, 2024, Cienco4's payable debt was over VND5,823 billion, a slight decrease compared to the beginning of the year. Cienco4's total debt/total assets ratio is much higher than that of other businesses in the industry such as LGC, SCG, CII, HHV, etc.
There is still room for growth
Cienco4 is a long-standing contractor in the top transport infrastructure construction industry in Vietnam and has made its name in a series of key national projects, such as the Ho Chi Minh City - Trung Luong, Da Nang - Quang Ngai, Long Thanh - Dau Giay expressways, airports, Ben Thanh - Suoi Tien metro stations, mountain tunnels, urban tunnels, etc.
Cienco4 also owns and masters most of the construction technology in the field of transport infrastructure construction and installation, which requires high-level construction techniques that very few construction units in Vietnam can perform. With its reputation, in 2023, Cienco4 won many large projects, creating growth momentum for the Group in 2024 and the following years.
According to DSC Securities Company's calculations, Cienco4's backlog value is about VND7,500 billion. Of which, there are many bid packages of key national projects such as the North-South Expressway, Long Thanh Airport, and Ring Roads of major cities. In particular, according to DSC's assessment, large bid packages at Long Thanh Airport and the North-South Expressway Phase 2 will soon be recorded in revenue because Cienco4 has good construction capabilities and rarely delays project progress.
In addition, the Giai Phong - Kim Dong tunnel project (Hanoi Ring Road 2.5) with a total investment of VND800 billion, in which the Cienco4 consortium is constructing bid package No.17 worth more than VND560 billion, is also gradually reaching the finish line, expected to bring significant revenue and profit to the Group in the near future.
Along with that, the core business of BOT has improved when since the end of 2023, some BOT toll stations have adjusted their prices up. The North-South expressway BOT project, Dien Chau - Bai Vot section, has been officially opened to traffic since June 30, 2024, along with previous BOT projects, which will bring sustainable profits to the Group.
According to DSC, this route is expected to attract 12,000 - 13,000 passengers per day based on the Nghi Son - Dien Chau route. In the context of the tourism economy gradually returning, DSC expects that BOT will bring VND58 - VND60 billion in after-tax profit to Cienco4 each year, stably for the next 5 - 10 years.
In addition, in early July, the Quang Tri Airport Project implemented by the joint venture of investors T&T - Cienco 4 officially started construction. This is the second airport in the country to be invested in the form of public-private partnership (PPP) in the form of BOT (after Van Don airport).
Quang Tri airport has a scale of more than 265 hectares, a total investment of more than VND5,800 billion, built to level 4C standards, meeting the exploitation needs of up to 5 million passengers/year and 25,500 tons of cargo/year.
The project implementation period is 50 years, of which the project preparation and construction investment period is 24 months; the operation period, toll collection and capital recovery period is 47 years and 2 months. It is expected that by July 2026, Quang Tri airport will be put into operation and use.
The project implementation period is 50 years, of which the project preparation and construction investment period is 24 months; the operation and toll collection period is 47 years and 2 months. It is expected that by July 2026, Quang Tri airport will be put into operation and use.
With the bright business prospects as above, C4G shares are expected to have a breakthrough in the near future.
N.Nga
Source: VITIC/Tinnhanhchungkhoan