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FLC Faros expects to exceed 2017 profit targets

Released at: 07:51, 04/11/2017

FLC Faros expects to exceed 2017 profit targets

Photo: FLC Faros

Target in sight, company says, despite low profits in first nine months.

by Ngoc Lan

The FLC Faros Construction JSC (ROS) expects to exceed its 2017 profit target shortly and will pay a dividend of 10-12 per cent, according to its latest report.

The accounting of revenue and profit has irregular characters, according to the report, and depends on the implementation process. This is why ROS is upbeat about meeting its profit targets for 2017 ahead of schedule, even though it recorded after-tax profit of just VND208 billion ($9.15 million) in the first nine months of the year compared to the annual plan of VND580 billion ($25.7 million).

The value of contracts and projects the company has signed and carried out has reached VND20.11 trillion ($885.3 million). Among its large-scale deals are the Quang Binh golf, villa and high-end entertainment project worth VND5.58 trillion ($248 million), and the second phase of the FLC Vinh Phuc project worth VND1.41 trillion ($62.6 million).

The company expects to record revenue of a combined VND3.5 trillion ($155.5 million) from 12 major projects on which it is focused. It is speeding up handover at a wide range of projects in the 2017-2018 period, such as FLC Garden City, FLC Twin Towers, and the FLC Ha Long complex.

FLC Faros is currently carrying out work at the GAMI Group-invested Hoi An Cultural Impression theme park, which boasts major facilities such as a three-story open-air theater with 3,400 seats, roads and infrastructure surrounding the island, service and office areas, parking lots, and a front gate. With proven experience and outstanding capacity, FLC Faros is confident it will finish construction in just nine months and hand it over within this year.

With such a large volume of contracts, FLC Faros says that it has already guaranteed orders for the next five years and can make full use of its existing resources.

100 per cent return for foreign funds

After MV Index Solutions announced its review for the second quarter of 2017, ROS was acquired by the Market Vectors Vietnam ETF and became one of the biggest constituents of the fund’s portfolio.

The Market Vectors Vietnam ETF bought around 4.1 million shares in ROS between June 10 and 17 at an adjusted price of VND85,000 ($3.7) apiece on average. As at October 24, the investment had returned 124 per cent after four months.

Besides the Market Vectors Vietnam ETF, the db x-trackers FTSE Vietnam UCITS ETF has purchased over 3 million shares of ROS since its first-quarter review in March 2017 at an average price of VND156,000 ($6.9) each. The fund continued to buying ROS and lifted the holding during the two consequent quarterly reviews in June and September. In total, the fund is holding nearly 4 million ROS shares, acquired at an average price of VND131,000 ($5.8) each. The shares have returned 45.8 per cent.

Even before the FTSE Vietnam UCITS ETF, iShares MSCI Frontier 100 ETF - a fund that is investing in around 100 stocks in frontier markets across the globe with a combined value of $589 million - had added ROS to its basket, since February 10.

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