Ta Hoai Hanh, Chairman of the Board of Directors of BV Land said that the policy of the company is limiting capital loans. BV Land has only borrowed short-term loans for construction and installation activities so far. As for long-term investment activities, the company is very careful when taking out loans. Aiming for sustainable developments while doing business, the company is reluctant to take long-term loans.

The annual general meeting of BV Land’s shareholders for 2022 was held on the morning of April 28th. (Photo by Ha Le).

On April 28th, BV Land Joint Stock Company (code BVL) successfully held the annual general meeting of shareholders for 2022. At the meeting, the Board of Directors of the Company reported that in 2021, the company’s consolidated revenue reached nearly VND 600 billion and pre-tax profit reached nearly VND 31 billion, up 92% and 201% respectively over the same period. The company also achieved 89% of the revenue plan and exceeded the profit target for the whole year.

Last year, BV Land completed and handed over the infrastructure of Bavella Lac Ngan BV project in Phu Tho; completed the structural part of two BV Diamond Hill apartment towers in Bac Giang. Along with other companies belonging to BV Group, BV Land was selected as an investor in two projects, including Thanh Ba Urban Housing Area in Phu Tho and Tay Dinh Tri Urban Housing Area in Bac Giang. In addition, BV Land invested more money and funded many projects in the two provinces mentioned.

Adjusting profit target

At the annual meeting, BVLand’s Board of Directors submitted to shareholders the adjusted business plan. Specifically, consolidated revenue is expected to reach VND 1,918 billion, 3.2 times higher than last year’s revenue. Pre-tax profit is expected to increase from nearly 146 billion dong to nearly 196 billion dong (more than 6 times higher) and consolidated profit after tax (NPAT) is expected to increase from more than 112 billion dong to more than 162 billion dong (7 times higher).

BV Land will present to shareholders a plan to issue nearly 43 million common shares to existing shareholders with a ratio of 100:75 (shareholders owning 100 shares are entitled to purchase 75 new shares). The offering price is 10,000 VND/share. The execution time is expected in 2022 after being approved by the State Securities Commission.

The revenue from the IPO is expected to be nearly VND 430 billion, which will be used by BVL to invest in the Thanh Ba urban housing project. After completing the capital increase, the charter capital of BVL will be increased from more than 573 billion VND to more than 1,000 billion VND.

Listing stocks on HOSE

BVL will submit to shareholders for approval to list all of the company’s shares on the Ho Chi Minh City Stock Exchange (HOSE). According to the Board of Directors, the listing of BVL shares on HOSE will be an opportunity to promote the brand and create a professional image of financial transparency for the company, which is easier to raise capital by stocks and bonds to serve business activities and find partners.

Searching for new land funds in the Central and the South of Vietnam

In the past year, BV Land has completed and handed over the infrastructure of BV Bavella Lac Ngan project in Phu Tho and completed the structural part of two BV Diamond Hill apartment towers in Bac Giang.

Shortly, the company will submit to shareholders for approval to invest in Thanh Ba urban housing project in Phu Tho and the new urban housing area in Dinh Tri.

Thanh Ba urban housing project is more than 22 hectares in area, with a total investment capital of more than VND 1,180 billion. This project will be implemented by a joint venture between BV Land, Bach Viet Group Joint Stock Company, and Lilama Construction Investment Joint Stock Company. In 2022, BVL is expected to complete the design and site clearance work as planned. The site clearance is expected to be completed in the first quarter of 2023.

The West Dinh Tri urban area project in Bac Giang has an area of ​​​​about 12.5 hectares. The investors of the project include Areca Vietnam Investment and Services JSC (main member), Bach Viet Group JSC, BV Land JSC, and TMG Infrastructure Development JSC. The project is expected to complete the design work in the third quarter of 2022 and complete the site clearance this year.

In 2022, BVL said it will focus on developing investment in new markets in the Central and Southern coastal provinces, aiming to be the investor of 4-6 more projects through bidding, auction, or transfer.

Discussion section:

In the context that bank credit is being tightened and corporate bond issuance activities are also controlled, will BV Land be affected?

Ta Hoai Hanh, Chairman of BV Land: BV Land has not yet issued bonds and the company only takes loans for construction. Current investment projects of BV Land depend mainly on subsidiaries. In the coming time, the Board of Directors has also planned to raise capital for projects.

In 2022, the enterprise plans to increase its capital to 1,000 billion to prepare for the implementation of projects such as Thanh Ba and Dinh Tri.

The company has a policy of limiting capital loans. BV Land has only taken out short-term loans for construction and installation activities. As for long-term investment activities, we are very careful and reluctant to take loans because the company is aiming for sustainable development.

Mobilizing long-term capital is very stressful in paying bank interest. If we have the good financial capacity and good management, we have many ways to mobilize resources from partners, customers, etc. to implement projects.

The government still takes an important role in directing economic development through tools such as stocks and bonds. We need to tighten up that sector more in the future. Currently, BV Land has not issued bonds but with such a growth rate and long-range target, we will. The company will do it firmly, thoughtfully, and carefully, especially not using too much financial leverage. In business, certainty, and sustainability outweigh speed and risk.

Can the Board of Directors share more specifically about the plan to develop a new land bank in the Central and Southern regions?

Mr. Ta Hoai Hanh: Currently, BV Land has implemented investment promotion in many provinces and cities throughout the country. Particularly in the central market, we have promoted investment from Thanh Hoa to Ninh Thuan, and asked to fund for planning in 5 – 10 coming years.

However, we have only sponsored the planning for these projects. Soon, to be selected as an investor, we must comply with the provisions of the law which are bidding and auctioning. It is possible that we do not invest in the project after funding or we take part in bidding and auctioning without sponsoring.

Please rest assured. The Board of Directors has developed a very specific plan for the next 5 years and a vision for 2035.

In the medium and long term, does BV Land target other segments such as resort real estate and industrial real estate?

Mr. Ta Hoai Hanh: Currently, BV Land has some resorts, golf courses, and industrial real estate projects. We have issued planning funding documents waited for investment policy approval.

In the long term, BVL will diversify its investment categories, not only housing products but also offices and commercial centers for lease. In the coming time, BVL will certainly expand further and invest in other fields. Since this is a long-term plan, the company has not disclosed it yet. Our Board of Directors has planned to expand markets and products.

At the end of the meeting, all proposals were approved.