The reason why CII stock is on alert

Accordingly, CII shares of Ho Chi Minh City Technical Infrastructure Investment Joint Stock Company were put under warning by the Ho Chi Minh Stock Exchange (HoSE) from March 30.

CII’s leadership said that last year, the complicated situation of the epidemic and prolonged social distancing made the company difficult, affecting business results. In which, toll collection, real estate and construction and installation are significantly affected.

With the bridge and road segment, CII’s toll stations are temporarily closed for a specified period, affecting toll revenue and the source of money for debt and interest payment for the project.

With the real estate segment, company leaders believe that the epidemic situation affects people’s income, leading to a serious decrease in the demand for real estate investment. In addition, late payment by customers according to schedule also affects cash flow of projects, hindering CII’s plan to reduce debt and reduce interest pressure.

Last year, construction sites halted construction during the lockdown period, leading to delayed or delayed payments to contractors. This causes revenue from construction, maintenance and construction activities to decrease.

In addition, CII’s management also believes that due to Vietnamese accounting standards (VAS), this enterprise must record a large loss. Interest expenses incurred in the period, business administration expenses, salary expenses… still have to be accounted for. The company confirmed that the above items did not cause too great financial loss, but created a high difference between revenue and expenses, leading to negative profit results.

In the fourth quarter of 2021, CII finished divesting 25.4 million NBB shares of Nam Bay Seven Investment Joint Stock Company and collected more than 1,000 billion VND. The company recorded a profit of about 595 billion dong in its separate financial statements. But NBB is still a subsidiary, so this profit is recorded in undistributed profit but not in consolidated profit.

According to the plan this year, besides preparing financial statements according to VAS, this business is also converting to international financial reporting standards (IFRS). “If CII’s 2021 consolidated financial statements were applied akin to IFRS standards, the financial position and comprehensive income of the company would be significantly different from those prepared and presented in accordance with VAS standards”, the company’s management stated and for example, the total value of consolidated assets could increase by more than VND 4,570 billion or the total comprehensive income belonging to shareholders of the parent company could increase by more than VND 4,570 billion. 2,220 billion VND.

This year, CII set out a business plan with great expectations when the revenue target increased 2.7 times to over VND 8,010 billion. The company also wants to quickly get rid of losses and achieve a record profit of nearly 757 billion dong, the highest since 2018 until now.

Regarding the road and bridge segment, CII plans to start collecting payback fees for the Trung Luong – My Thuan expressway project from the second quarter of 2022. Total toll revenue this year is estimated at VND 2,200 billion if the above project is included.

With real estate, CII said that it has completed the legal procedures and is owning a “fairly large clean land fund” in Ho Chi Minh City as well as some other provinces and cities… It is expected that the total net proceeds will be from the list of real estate projects up to VND 10,000 billion in the period of 2022-2025.

Siddhartha