After 46 years of operation, Construction Joint Stock Company 47 (HSX: C47) has become a prestigious brand in many irrigation, hydropower, civil and industrial projects across the country.

The journey to affirm the brand in the market

Highly appreciated by partners for applying new technology to the construction process, CC47 is currently the leading company using roller compacted concrete (RCC) technology, tunneling technology using TBM Tunneling Robots. … at many key projects worth thousands of billions of dong. Statistics show that CC47 has completed more than 30 irrigation and hydropower projects worth more than 20,000 billion VND in the last 15 years. The capacity of CC47 has been proven through technical parameters such as soil and rock excavation capacity of 4 million m3/year, concrete capacity of 1.5 million m3/year, capacity of sand and gravel supply of 1.3 million m3/year…

CC47, in addition to its primary activities in the construction industry, also invests in restaurants, hotels, travel and tourism, motorcycle repair and overhaul businesses, and manufactures mechanical engineering products, concrete products… Currently, this company owns 100% of the Hai Au 4-star standard hotel (169 rooms), Hai Au Bien Cuong 3-star hotel (80 rooms) in Quy Nhon, and a serviced motel, restaurant, and eco-tourism area in Binh Dinh. In the field of production, training and labor export, CC47 currently owns 100% of Phuoc An Enterprise (Phuoc An Industrial Complex), training center (Quy Nhon)… These businesses also make a significant contribution to the company’s annual revenue.

Quickly adapting to new business conditions – CC47’s survival problem

Mr. Pham Nam Phong, Chairman of the Board of Directors of CC47, spoke about CC47’s positive results in responding quickly to new business conditions in the face of the Covid-19 pandemic. This is also the time that he was elected for the new term 2020-2025. In 2020, the company’s sales totaled 1,233 billion VND, with a profit after tax of more than 21.7 billion VND. In the first six months of 2021, total revenue was VND 572 billion, and profit after tax was VND 17.1 billion, representing 52 percent of the revenue plan and 55 percent of the profit plan for the year. The rapid application of technology to management and supervision, the implementation of an ERP system, the optimization of production and business efficiency, cost reduction, particularly interest expense, and other factors contributed to the profit in the first six months of the year. CC47 prices in 2021 increased by 29.45 percent compared to the same period in 2020.

In 2021, besides many large hydropower projects such as Bac Ai hydropower plant (Ninh Thuan), Da Nhim expanded hydropower plant (Lam Dong), Dong Mit irrigation (Binh Dinh) … CC47 has also commenced and implemented the construction of expanded Hoa Binh hydropower projects (Hoa Binh), Dong Mit hydropower projects (Binh Dinh), repairing and improving safety of WB8 dam (Lam Dong) and continue to commence construction of Phu Phong rolling weir project (Binh Dinh) in October 2021. The total value of new works started in 2021 exceeds VND 1,500 billion, and the total value of bidding packages to be participated in at the end of 2021 and in 2022 exceeds VND 5,000 billion.

Strategic vision for the period 2021-2025

Having worked as a manager in foreign corporations and businesses in the energy industry, Mr. Pham Nam Phong and the members of the new Board of Directors have applied various innovations, vision and business philosophy for CC47. In the period of 2021 – 2025, with the advantage of construction capacity of large and diversified projects in technology, especially with the Government’s policy of promoting public investment, CC47 will have opportunities to participate in many projects such as projects using ODA loans; projects under medium-term bond capital 2021-2025 in the irrigation – transportation – infrastructure sectors; irrigation projects funded by the state budget in the Central – Central Highlands region; new and expanded hydropower projects in the country and neighboring countries. With a total investment capital of projects estimated at more than 200 trillion, it will open up new development opportunities for CC47.

Besides the traditional business segments, the company will promote participation in new segments to gradually increase the proportion of revenue. Participation in highway projects; anti-flood, anti-salinity projects, embankments to prevent rivers and seas; Metro project; airport and port infrastructure; renewable power plant projects; Projects of civil buildings, factories, industrial park infrastructure… will be targeted by CC47 to expand operations.

From 2022, the company is expected to set an average growth rate of 25% per year in both revenue and profit, aiming for sales of over VND 3,000 billion by 2025, soon reaching a market capitalization of VND trillion, becoming a listed company with medium-capitalization (MidCap) and high liquidity on the Ho Chi Minh Stock Exchange, strengthening investor relations (IR) activities, providing transparent and timely information, and striving to maintain a high dividend payout ratio and bonus shares averaging over 15% per year in the next few years.

In the increasingly complicated Covid-19 context, CC47 is confident to achieve much more fruitful success on the basis of its experience and previous accomplishments.

Mr. Pham Nam Phong, Chairman of the Board of Directors of Construction Joint Stock Company 47 (HoSE: C47), has just delivered a message outlining the company’s vision and strategy for the next four years, from 2021 to 2025, when it has just celebrated its 46th anniversary. Mr. Phong has only been Chairman of the Board of Directors since mid-August; prior to that, he was Vice Chairman of the Board of Directors.

Accordingly, the company is expected to set an average revenue and profit growth target of 25% per year beginning in 2022, with a goal of exceeding 3,000 billion dong in sales by 2025. The average dividend and bonus share ratio is greater than 15% per year.

CC47 is expected to participate in many national projects in experience fields such as irrigation, hydroelectricity, civil and industrial works, and so on, with an investment capital of more than 200,000 billion VND. In addition to traditional segments, the company will encourage participation in new segments to gradually increase the proportion of revenue, such as highway projects, anti-flood, anti-salinity projects, embankments along rivers and seas, metro projects using TBM tunneling technology, airport and port infrastructure, renewable power plant projects, industrial park infrastructure….

THE BUSINESS RESULTS OVER THE YEARS

In this year, the company has completed and will complete and hand over major projects such as Bac Ai Pumped-Storage Hydropower plant (Ninh Thuan), Da Nhim Expanded Hydropower Plant (Lam Dong), Tan My Irrigation (Ninh Thuan), Dong Mit (Binh Dinh). In addition, CC47 has also started and implemented the construction of expanded Hoa Binh Hydropower projects (Hoa Binh), Dong Mit hydropower projects (Binh Dinh), repairing and improving safety of WB8 dam in Lam Dong province (Lam Dong). In October, the company will start construction of Phu Phong Rolling Weir (Binh Dinh).

According to the company, the total value of new construction works in the year exceeded 1,500 billion VND. The total value of the bidding packages to be participated in by the end of 2021 and 2022 is expected to exceed VND 5,000 billion, ensuring a source of investment for the following year.

In the first half of the year, the company earned 572 billion dong in revenue and more than 17 billion dong in profit after tax, representing increases of 3% and 29%, respectively, over the same period last year. In comparison to the year plan, the company completed 52% of revenue and 55% of profit. Business leaders anticipate that profit growth will continue in the third quarter, and that the year will exceed expectations.

CC47 targets an average growth of 25% per year from 2022 in both revenue and profit, aiming for sales of over VND 3,000 billion by 2025.

In a letter to shareholders on the occasion of the 46th anniversary of the establishment of Construction Joint Stock Company 47 (CC47) on September 27, Mr. Pham Nam Phong, Chairman of the Board of Directors of Construction Joint Stock Company 47 (CC47) stated that in addition to successfully completing and handing over the works of large projects in 2021, the total value of new works begun in 2021 will reach 5,000 billion dong, ensuring a steady source of income in the coming years.

Major projects that have been and will be handed over in 2021 include Bac Ai Pumped Storage Hydropower Plant (Ninh Thuan), Da Nhim Hydropower Extension Project (Lam Dong), Tan My Irrigation Project (Ninh Thuan), and Dong Mit Irrigation Project (Binh Dinh). CC47 has also started and implemented the construction of Hoa Binh Hydropower Plant Extension (Hoa Binh), Dong Mit Hydropower Plant (Binh Dinh), repairing and improving the safety of WB8 dam in Lam Dong province and will continue to start construction of the Phu Phong Rolling Weir project (Binh Dinh) in October 2021.

According to Phong, CC47 aims to grow at a rate of 25% per year in both revenue and profit beginning in 2022, with sales exceeding VND 3,000 billion by 2025 and a market capitalization of VND trillion and high liquidity. Attempts should be made to keep the average dividend payout ratio and bonus shares above 15% per year.

In terms of business results, revenue was 572 billion dong in the first half of the year, profit was 17.1 billion dong, completing 55 percent of the profit plan, and the third quarter achieved a high profit compared to the same period last year, according to the Board of Management report.

 

A Letter to CC47 shareholders, about vision & strategy 2021 – 2025

Quy Nhon, September 27, 2021

 

Dear Shareholders,

On the occasion of the 46th anniversary of the establishment of Construction Joint Stock Company 47, I would like to express my sincere gratitude to all shareholders on behalf of the Board of Directors, Leaders, and the entire staff of the company. Best wishes and good luck!

Established on September 8, 1975, formerly known as Irrigation Construction Company 7 under the Ministry of Irrigation, now the Ministry of Agriculture and Rural Development. On February 3, 1996, Irrigation Construction Company 7 was merged into Construction Corporation 4 and changed its name to Construction Company 47. On July 1, 2005, the company officially changed its operating mechanism from a State-owned enterprise to a Joint-stock company according to the business registration certificate No. 4100258747 issued by the Department of Planning and Investment of Binh Dinh province. On March 30, 2011, the Company officially traded for the first time at the Ho Chi Minh City Stock Exchange with the code CC47.

CC47 has gradually mastered the construction technology of irrigation, hydropower, civil and industrial works throughout the country over the course of 46 years of establishment and development. CC47 was also the first to implement new technologies such as roller compacted concrete (RCC), tunneling technology using TBM Tunneling Robot (more than 15km has been implemented), and so on, with many key projects worth trillion dong, which were highly valued by investors and agencies. In the last 15 years, the company has completed more than 30 irrigation and hydropower projects across the country worth more than 20,000 billion VND. Some typical capabilities of CC47 include: capacity to excavate soil and rock 4 million m3/year, capacity of concrete 1.5 million m3/year, capacity to supply sand and gravel 1.3 million m3/year, …

Furthermore, the Company also expands its lines of business into other industries such as restaurants, hotels, travel, and tourism: 100% ownership of Seagull hotel of 4-star standard (169 rooms – 5,183 m2 land area), 3-star standard Hai Au Bien Cuong Hotel (80 rooms – land area of 1,095 m2) in the coastal city of Quy Nhon, Dinh Binh guesthouse and restaurant service area (area of 12,500 m2) in Vinh Thanh district, Binh Dinh province, Dinh Binh eco-tourism area (area 111,500 m2) in Vinh Thanh district, Binh Dinh province; Overhaul of construction motorcycles, production of mechanical engineering products, production of fresh concrete and precast concrete components (100 percent ownership of Phuoc An Enterprise with a land area of 48,743 m2 in the industrial complex in Phuoc An – Tuy Phuoc district); training and labor export (100 percent ownership of the training center with an area of 8,775 m2 in Quy Nhon); testing the mechanical strength of structural concrete, exploiting and transporting construction materials… These sectors all significantly contribute to the company’s annual revenue. In terms of fixed assets, primarily vehicles, machinery, and construction equipment, data from the financial statement dated June 30, 2021 show that the company’s historical cost of tangible fixed assets reached 1,230 billion VND, with accumulated depreciation amounting to 795 billion VND.

Dear Shareholders,

I have been with CC47 since 2017 through the process of participating in investment and learning about the company. On June 28, 2020, I officially joined the Board of Directors as Vice Chairman, and on August 14, 2020, I was recently elected as Chairman of the Board of Directors for the 2020-2025 term in 2021. This is both an honor and a huge responsibility for me. I received my bachelor’s degree in mechanical and automotive engineering from Ho Chi Minh City University of Technology, my master’s degree in business administration and marketing from Solvay School in Belgium, and my bachelor’s degree in quality management from the University of Economics in Ho Chi Minh City. I have held senior management positions in European and American corporations, and I am the founder and Chairman of Vu Phong Energy Group, which has been a pioneer in Vietnam’s renewable energy industry since 2009. The members of the Board of Directors for the term 2020-2025 of CC47 company are individuals with extensive experience in business operation management and financial management. The cohesion and consensus among the Board of Directors, Executive Board and employees after more than 1 year in the new term has created positive changes in the model of governance and management more effectively, creating the premise for the implementation of CC47’s 2021-2025 strategy.

The two years 2020 and 2021 are challenging years for the construction and tourism industries due to the Covid-19 pandemic, but thanks to the proactive response, CC47 still achieved positive results. In 2020, the company achieved sales of 1,233 billion VND and more than 21.7 billion VND in profit after tax. In the first 6 months of 2021, total revenue reached VND 572 billion and profit after tax was VND 17.1 billion, reaching 52% of the revenue plan and 55% of the year’s profit plan. It is clear that, as a result of the use of technology in improving management and supervision capacity, deploying ERP systems for businesses, optimizing production and business efficiency, cutting costs, particularly interest expenses and loans, the company’s profit in the first six months of 2021 increased by 29.45 percent over the same period in 2020. According to the General Director’s quick report, it is expected that the company will continue to achieve high profits in the third quarter of 2021 compared to the same period last year, and the company’s employees are determined to exceed the profit target of 2021 approved by the General Meeting of Shareholders.

In 2021, in addition to having completed and will complete the handover of works on large projects such as the Bac Ai Pumped-Storage Hydropower Project (Ninh Thuan), the Expanded Da Nhim Hydropower Project (Lam Dong), the Tan My Irrigation Project (Ninh Thuan), and the Dong Mit Irrigation project (Binh Dinh), CC47 has also begun and will complete the construction of the Hoa Binh Hydropower Plant Extension (Hoa Binh), repair and improve the safety of WB8 dam in Lam Dong province (Lam Dong), and continue to build the Phu Phong Rolling weir project (Binh Dinh) in October 2021. The total value of new construction works in 2021 will reach more than 1,500 billion VND, the total value of the bidding packages to be participated in at the end of 2021 and in 2022 is more than 5,000 billion VND, which will ensure the company income next year.

In terms of vision and strategy for the period 2021-2025, particularly in the post-pandemic recovery period, CC47 with the advantage of current capacity in the construction of large – scale projects and the policy of government funding,  will be able to participate in a variety of projects across the country, including:

– Projects in the irrigation, transportation, and infrastructure sectors under the medium-term bond capital 2021-2025.

– Projects financed with ODA loans.

– Major irrigation projects financed by the state budget, particularly in the Central and Central Highlands provinces.

– Large hydropower projects in Vietnam and neighboring countries that are being built or expanded.

With the above investment capital sources in the period of 2021 – 2025, especially large projects, with a total investment capital of more than 200 trillion, CC47’s job opportunities will be very feasible. Besides the traditional segments, the company will promote participation in new segments to gradually increase the proportion of revenue such as:

– Highway projects; anti-flood, anti-salinity projects; river and sea embankment

– A metro project utilizing TBM tunneling robot technology, as well as airport and port infrastructure.

– Projects involving renewable energy sources such as wind power, solar power, and other power plants.

– Civil building and factory projects, as well as industrial park infrastructure.

The company is expected to set an average revenue and profit growth target of 25% per year beginning in 2022, aiming for sales of over 3,000 billion dong by 2025 and eventually reaching a market capitalization of trillion dong and becoming a listed enterprise on the Ho Chi Minh Stock Exchange with a medium capitalization (MidCap) and high liquidity. CC47 will strengthen and improve its investor relations (IR) activities, provide transparent and timely information, and strive to maintain a high dividend payout ratio and bonus shares averaging more than 15% per year. The company’s Board of Directors and Board of Management have a fairly detailed plan for the period 2022-2025, and the Company hopes to organize a meeting soon, both in person and online, to share more details about the vision and strategy for the new period, as well as discuss in detail questions and acknowledge shareholder comments.

On behalf of the CC47 Board of Directors, we have always prioritized CC47’s long-term development and financial stability in order to provide long-term benefits to shareholders and employees while contributing to the company’s growth. Sustainable development that adds value to the community is an important component of the overall picture of a modern, dynamic, and powerful Vietnam in the future. We also look forward to gaining the trust of our shareholders, as well as the support and long-term companionship of CC47 in the integration journey, as well as to welcoming new opportunities and developing strongly on a new journey.

At the end of the letter, I would like to wish you and your family always happy, healthy and successful.

Best regards!

Chairman of the Board

M.A Phong, Pham Nam