Industrial park developer Becamex targets 2020 profit at $40mln, down 65%

Trade war and the COVID-19 pandemic, which have disrupted global supply chain and investment flows, are taking tolls on Becamex’s business. The company expects 2020 net revenue to fall 40% year-on-year to over VND6 trillion ($258 million).  

Business was good in 2019, when the pandemic did not happen. Becamex, one of Vietnam's largest real estate and infrastructure developers reported consolidated after-tax profit of VND2,631 billion ($113 million), up 12.6% from a year earlier. Revenue was reported at VND8,213 billion ($353 million), up 27.1% year-on-year.

At the upcoming meeting, the company will seek shareholders’ approval to increase charter capital to VND20 trillion ($860 million) from current VND10.3 trillion ($445 million).

Becamex plans to issue 207 million shares to existing shareholders at VND15,000 ($0.64) apiece in 2020 and 2021. It is expected that after this issuance, its charter capital will increase to VND12,240 billion.

In addition, the company which will move share listing to Ho Chi Minh City Stock Exchange in 2020 plans to issue 758 million shares via private placement to increase charter capital to VND20 trillion.