At its recent shareholders' meeting, Fecon Corporation (HSX: FCN), one of the biggest underground construction contractors in Vietnam, set a revenue target of VND3.9 trillion ($169.57 million) for 2021 and approved plans to issue shares to increase charter capital to VND1.574 trillion ($68.43 million).
|Fecon plans to invest and develop renewable energy projects and urban infrastructure projects with a value of VND340 billion ($14.8 million) in 2021 |
At its 2021 annual general meeting of shareholders (AGM), Fecon set a consolidated revenue target of VND3.9 trillion, with consolidated after-tax profit of VND175 billion ($7.6 million), up 24 and 31 per cent, respectively, compared to the 2020 results.
Fecon also plans to invest and develop renewable energy and urban infrastructure projects with a value of VND340 billion ($14.8 million) in 2021 and VND1.22 trillion ($53 million) in 2022.
Furthermore, the stakeholders have approved a plan to issue 32 million shares to increase Fecon’s capital.
Specifically, Fecon plans to issue 32 million individual shares at an offering price of VND13,000 (57 US cents) for professional domestic and foreign securities investors. The company expected to raise VND416 billion ($18.1 million) from the issuance, increasing its charter capital to VND1.574 billion.
The capital is intended to supplement working capital and improve financial capacity to finance upcoming projects, especially renewable energy and environmental projects.
In the first quarter of 2021, Fecon recorded revenue of VND580.2 billion ($25.23 million), with an after-tax profit of VND17.4 billion ($756,520), up 35.6 and 15.2 per cent, respectively, over the same period last year.
Notably, on June 10, this company officially won a bid worth more than VND273 billion ($11.87 million) at BT2 Wind Power Plant - phase II of B&T Quang Binh wind farm cluster, bringing the total value ofFecon's projectsto VND1.18 trillion ($51.3 million).
However, despite the growth in revenue and profit, Fecon has recorded negative cash flow.
Specifically, in the first quarter, the cash flow from main business activities was negative VND375.9 billion ($16.34 million) compared to the same period. In order to cover the deficit in business cash flow and investment, the financial cash flow in the period was positive at VND625.3 billion ($27.19 million), mainly due to the increased loan.