State-owned glass and construction ceramic producer Viglacera plans to earn VND950 billion (US$41.65 million) in pre-tax profit in 2018, up 4 per cent year-on-year, the company announced in its annual shareholders’ meeting on Friday in Ha Noi. The company, whose stocks are traded on the Ha Noi Stock Exchange under the code VGC, aims to attain VND9.1 trillion in revenue, down slightly from the previous year’s figure of nearly VND9.2 trillion, it revealed.
As for the parent company, VGC set a pre-tax profit growth target of over 11 per cent in 2018. It plans to keep the dividend payment ratio the same as in 2017, at 9.5 per cent.
In 2017, VGC’s consolidated pre-tax profit was VND913.8 billion, equivalent to 108 per cent of the annual plan approved by the General Meeting of Shareholders, up 19 per cent compared to 2016. Of this, pre-tax profit earned by the parent company reached VND566.5 billion in 2017, fulfilling 115 per cent of the annual plan, up 28 per cent compared to 2016.
VGC’s development investment plan in 2018 will focus on high-tech building materials, green projects and urban housing projects.
The company plans to set up Yen Phong Super White Float Glass Co Ltd in Yen Phong Industrial Park in the northern province of Bac Ninh. It plans to hold a 51 per cent stake in the company and invest in plant processing super white float glass, which is used for making solar panels, with a capacity of 650 tonnes per day.
The company is also preparing to invest in the expansion of Dong Van IV Industrial Zone in the northern province of Ha Nam.
Regarding the real estate segment, VGC will focus on workers’ housing and social housing in industrial parks as well as resorts.
It is expected to invest in worker housing in the northern province of Bac Ninh, the southern provinces of Binh Duong and Ba Ria-Vung Tau and develop Van Hai Ecological Tourist Zone in the northern province of Quang Ninh.
In the field of overseas investment, Viglacera will continue to promote trade cooperation in joint venture investment projects to produce sanitary ware ceramic tiles.
It will boost the investment and development of Viglacera Industrial Park in Mariel Special Zone in Cuba. The company will also invest in hotels, resort villas and golf courses in Cuba, which, according to VGC, will open up many opportunities for Viglacera in Cuba.
In 2018, the government’s plan to divest capital from Viglacera will create a fundamental change in State ownership— down to 36 per cent, and involvement of investors in corporate governance, contributing to the development of VGC.
VGC shares ended trading on Sunday down 4.2 per cent, settling at VND20,600 per share.
Viglacera was established in 1974 under the decision of the Ministry of Construction. In 2014, the company became equitised and changed its mode of operation with a charter capital of VND2.64 trillion.
The company specialises in construction and construction material and real estate trading. Viglacera aims to become a multinational company, operating mainly in standardised construction material manufacturing and real estate investment, with priorities given to industrial zones and residential areas.