Vinaconex beats profit target

Construction giant Vinaconex (VCG), listed on the Ha Noi Stock Exchange, beat its earnings target for last year by 11.2 per cent, with combined revenue from all units totalling VND13.12 trillion (US$697.9 million).

Net profit grew 41.8 per cent year-on-year to VND460.5 billion ($24.5 million).

Vinaconex is one four listed companies which earned VND10 trillion ($555 million) or more last year, joining a select club that consists of software giant FPT, PetroVietnam Technical Services (PVS), and Phu Nhuan Jewelry (PNJ).

Construction, the sector generating the biggest chunk of Vinaconex revenue, accounted for 55 per cent of the company’s earnings in 2009, but the company was also active in the production of industrial and construction materials, as well as real estate development.

In 2010, Vinaconex is planning to issue VND2 trillion ($106.4 million) worth of corporate bonds and carry out a stock split that would enable it to increase its charter capital.

“We will seek approval from the shareholders meeting in March,” said Vinaconex CEO Pham Chi Son.

The company this year targets VND22.8 trillion ($1.2 billion) in total revenue and a profit VND1.28 trillion ($68.1 million).

VCG closed yesterday at VND49,600 ($2.60).

Tags: Vietnam construction company, Vinaconex