Activities
Becamex IDC’s profit in the first quarter of 2024 increased by 60%, and there are more than 600 hectares of land available for lease.
Industrial Investment and Development Corporation (Becamex IDC, stock code BCM) announced that its net profit in the first quarter of 2024 increased by 60% over the same period. It is worth noting that Becamex IDC still has more than 600 hectares of land available for lease.
Becamex IDC is currently the largest industrial park developer in Binh Duong province.
According to the newly released consolidated financial report for the first quarter of 2024, Becamex IDC recorded net revenue of 812 billion VND, a slight increase of 3% over the same period last year. Of which, the real estate business segment contributed up to 450 billion VND to total revenue.
The cost of goods sold of this industrial park developer decreased sharply by 38%, helping Becamex IDC’s gross profit margin in the first quarter of 2024 reach 71%, compared to 51% in the same period in 2023.
After deducting expenses incurred in business activities, Becamex IDC reported a profit after tax of 119 billion VND, an increase of 60% over the same period last year. At the same time, this company’s business cash flow also improved strongly, reaching a positive level of VND 876 billion in the first quarter of 2024, compared to a negative level of VND 1,238 billion in the first quarter of 2023.
List of industrial parks currently directly managed and operated by Becamex IDC. (Source: Becamex IDC)
According to the 2023 annual report, Becamex IDC is directly managing 06 industrial parks with a total area of more than 3,577 hectares. Therefore, Becamex IDC is the leading industrial park development enterprise in Binh Duong with more than 30% market share at the provincial level and about 3.6% market share nationwide.
In addition, Becamex IDC also participated in a joint venture with a Singaporean enterprise to establish the Vietnam-Singapore Industrial Park Joint Venture Company (VSIP, with Becamex IDC owning 49% of the capital). VSIP is one of the leading integrated industrial and urban park developers in Vietnam, including 12 projects nationwide with a total area of more than 10,000 hectares.
For industrial park projects that Becamex IDC directly manages, the average occupancy rate has reached over 80%. Among them, My Phuoc 2 Industrial Park has an occupancy rate of up to 96%. Preliminary estimates show that Becamex IDC currently has about 628 hectares of industrial park land available for lease.
Trading volume and price trend of Becamex IDC’s BCM shares from the beginning of 2023 to present. (Source: TradingView)
Becamex IDC has announced that, to create an industrial park land fund for rent in the next phase, the Corporation is focusing on investing in the Cay Truong Industrial Park project, Binh Duong province. This project has a planned area of up to 700 hectares, with an investment capital of nearly 4,000 billion VND, and has been approved by the government as a strategic project.
During the period from 2024 to 2025, in addition to leasing the remaining areas, the Corporation will focus on attracting large corporations to the expanded Bau Bang Industrial Park (with the remaining business area of nearly 400 acres). hectares), located next to the existing Bau Bang Industrial Park, with convenient traffic connections.
With the annual need to rent industrial park land from 100 hectares, the remaining land fund in Bau Bang Industrial Park is expanded enough for business exploitation until the end of 2024, according to information from Becamex IDC.
By March 31, 2024, Becamex IDC’s total assets have reached VND 54,069 billion, a slight increase of 1% compared to the beginning of this year. Of which, inventory accounts for the largest proportion at 20,348 billion VND, followed by long-term financial investment at about 18,265 billion VND.
On the balance sheet, Becamex IDC’s total liabilities reached about VND 34,543 billion as of March 31, 2024, an increase of nearly 2% compared to the beginning of the year. Of these, loans account for more than 60% of total outstanding debt, reaching VND 21,000 billion.