CII Bridges and Roads (LGC) Plans 12% Profit Increase to VND 558 Billion, 16% Dividend

CII Bridge and Road Plans for a "Safe" Profit Increase

Specifically, CII Bridge and Road Investment Joint Stock Company (HoSE: LGC) plans for total revenue to reach VND 2,081 billion, an increase of 32% compared to the previous year's result. After-tax profit is expected to increase by a "safe" 11%, projected to reach VND 558 billion.

Regarding the business plan for the projects in 2023, almost all projects are expected to generate increased profits. Only the Ninh Thuan 1 project is estimated to incur a post-tax loss of VND 23.7 billion, with expected revenue decreasing by 38% to VND 115 billion.

Among these, the Hanoi Boulevard project is expected to generate the largest revenue, amounting to VND 701 billion, accounting for 34% of total revenue and increasing slightly by 0.5% compared to 2022. After-tax profit for this project is estimated to reach VND 306 billion, up 25%.

The Board of Directors of CII Bridge and Road has also approved the profit distribution plan for 2022, which includes a cash dividend of 8%, and the 2023 dividend plan with an expected cash rate of 16%.

In addition to the production and business plans, CII Bridge and Road has outlined financial activities, including balancing funds to ensure dividend payments; securing capital to implement additional investment projects for DT 741 and other potential projects; continuing to cooperate with the parent company, Ho Chi Minh City Infrastructure Investment Joint Stock Company (HoSE: CII), to work with Vietcombank HCMC for restructuring capital sources for the Hanoi Boulevard, DT 741, and Trung Luong - My Thuan projects. Furthermore, they plan to coordinate with relevant departments to research and gather information on BOT projects in which partners are interested in transferring their investments.

Financial Results for 2022

In 2022, CII Bridge and Road reported total revenue of VND 1,577 billion, a 45.7% increase compared to the previous year. After-tax profit reached VND 462 billion, marking a 50% increase. Compared to the annual business plan, LGC successfully achieved its targets for the year.