FLC Faros has said it has made breakthroughs in Engineering Procurement Construction activities this year, and its own projects have completed legal procedures and kicked off.
Hochiminh Stock Exchange-listed FLC Faros Construction JSC (coded ROS) expects to soon beat its 2017 profit targets and will pay a dividend of 10-12% of its par value, the company’s FLC Faros General Director Do Quang Lam.
The executive noted that the accounting of revenues and profit has irregular character and depends on the implementation process. That is the reason FLC Faros is upbeat about meeting its profit targets set for 2017 ahead of the schedule although the company earned an after-tax profit of 208 billion dong ($9.15 million) in the nine months through September, compared to the whole-year plan of 580 billion dong.
The construction giant claims that it has made breakthroughs in Engineering Procurement Construction (EPC) activities this year, and its own projects have completed legal procedures and kicked off.
The value of contracts and projects that the company has signed and carried out has reached 20.11 trillion dong ($885.3 million). Among its large-scale deals are the Quang Binh golf, villa and high-end entertainment project worth 5.58 trillion dong, and the second phase of the FLC Vinh Phuc project worth 1.41 trillion dong.
The company expects to record revenue of a combined 3.5 trillion dong from 12 major projects on which it is focused. It is speeding up the implementation for handover in the 2017-2018 period at a wide range of projects such as FLC Garden City, FLC Twin Towers (located at 265 Cau Giay Street, Hanoi), and FLC Ha Long complex.
FLC Faros is currently carrying out works at the GAMI Group-invested Hoi An Cultural Impression theme park, which boasts major facilities such as a three-storey open-door theater with 3,400 seats, roads and infrastructure surrounding the island, service and office areas, parking lots and the welcome gate. With proven experience and outstanding capacities, 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 coming five years and can make full use of its existing resources.
100% Returns for Foreign Funds
With the company’s growing competitive edges, ROS has been one of the most wanted stocks by foreign funds this year and offers impressive returns for the major foreign-run ETFs active in the Vietnamese stock market.
After MV Index Solutions announced its review for the second quarter of 2017, ROS has been acquired by the Market Vectors Vietnam ETF and become one of the biggest constituents of the fund’s portfolio.
According to compiled data, the Market Vectors Vietnam ETF bought in around 4.1 million shares of ROS between June 10 and 17 at an adjusted price of 85,000 dong apiece on average. As of October 24, the investment has returned 124% 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 156,000 dong 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 131,000 dong each. The shares have returned 45.8%.
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, 2017.
The iShares MSCI Frontier 100 ETF has constantly increased its holding of ROS shares from 170,000 initially to 780,000 currently at an average price of 102,000 dong each. This investment has returned the fund 87.3%.
It is noteworthy that the rates of return mentioned above are yet to take into account a 10% share dividend paid out in July.
Cafef.vn