A site run by construction firm FECON Corporation (FCN) (Photo: baodautu.vn)Hanoi (VNS/VNA) - Despite the impact of the COVID-19 pandemic in the first quarter, constructionbusinesses still firmly believe bright growth lies ahead for the rest of the year.
“TheCOVID-19 disease has significantly affected the economy as well as theconstruction industry, especially the tourism and resort real estate, howeverthe industrial real estate area still expects good growth,” said Pham Viet Khoa, Chairman of the Board of Directorsof FECON Corporation (FCN).
FCNachieved contracted sales of 884 billion VND (37.9 million USD) in the first quarter. In March,contracted sales reached 234 billion VND. Q1 profit was estimated ataround 60 billion VND.
Forconstruction businesses, profits are often reported higher in the last quarterof the year than the other quarters because this is usually the accelerationtime for the handover of projects.
“In2020 as well as in the next five years, two out of the five key business areas ofFCN are industrial infrastructure construction and climate change prevention,”Khoa said.
InMarch, FCN signed many projects, including two in which the companyparticipating as contractors are Vinh Tan port project in Dong Nai province and Phuoc Dong IndustrialPark Project in Long An province.
“Windpower, irrigation projects and landslide-prone projects are also the focusedbusiness of FCN over the next five years,” Khoa added.
“Profitis forecast to decrease in the first quarter of 2020 due to the impact ofCOVID-19, but the signing of new contracts is a bright spot, which createsmotivation for construction enterprises in the next quarters,” he said.
InMarch 2020, the construction conglomerate Cotec Construction Joint StockCompany (CTD), signed two new high-class project contracts, raising the totalvalue of contracted sales to more than 5 trillion VND in the first quarter.
Thetwo projects are the Complex Building, covering an area of 8,320 square metreswith 1,074 luxury apartments in District 1, HCM City and the Metropole Thu Thiem project in District 2, HCM City.
“Thisachievement was earned by concerted efforts of all leaders and employees,despite the common difficulties amid the COVID-19 pandemic,” said a leader ofCTD.
Hoa BinhConstruction Group JSC (HBC) had made efforts to expand the market despitedifficulties caused by disease, participating in many projects includinginfrastructure projects abroad, with a total contract bidding value of morethan 26 trillion VND so far,said Le Viet Hai, HBC Chairman of the Board of Directors.
Accordingto HBC, in 2020 profit earned from civil construction and industrialconstruction will account for 60 – 65 percent, profit from infrastructuresegment will gradually increase the proportion to 35 to 40 percent.
Inorder to participate in the field of infrastructure construction, HBC haspurchased a 57-percent stake of the 479 Company - a unit separated from Cienco4 Corporation, specialising in infrastructure construction, with experience inlarge-scale infrastructure projects throughout the country.
Xuan Mai Construction and Investment JSC (XMC)saw revenue and profit in the first quarter of 2020 decrease sharply comparedto the same period in 2019, because many construction works had to betemporarily suspended due to the COVID-19pandemic.
InQ1, the company’s revenue was estimated at 175 billion VND, a half decrease compared to the sameperiod last year.
Onthe stock market, stocks of the construction industry have declined sharplyrecently. Price-earnings (P/E) ratio is still lower than that in the period of2016, according to Dao Hong Duong, Director of Analysis at PetroleumSecurities Company (PSI).
Headded that the construction stock group would witness strong fluctuation in themonths to come.
“Thisgroup is being negatively affected under pressure from foreign net selling,”Duong said.
“Whenthe negative effects are over, construction stock group may recover strongerthan the market average, especially when businesses begin to receive disbursedcapital from public investment stimulus package,” he said./.
“TheCOVID-19 disease has significantly affected the economy as well as theconstruction industry, especially the tourism and resort real estate, howeverthe industrial real estate area still expects good growth,” said Pham Viet Khoa, Chairman of the Board of Directorsof FECON Corporation (FCN).
FCNachieved contracted sales of 884 billion VND (37.9 million USD) in the first quarter. In March,contracted sales reached 234 billion VND. Q1 profit was estimated ataround 60 billion VND.
Forconstruction businesses, profits are often reported higher in the last quarterof the year than the other quarters because this is usually the accelerationtime for the handover of projects.
“In2020 as well as in the next five years, two out of the five key business areas ofFCN are industrial infrastructure construction and climate change prevention,”Khoa said.
InMarch, FCN signed many projects, including two in which the companyparticipating as contractors are Vinh Tan port project in Dong Nai province and Phuoc Dong IndustrialPark Project in Long An province.
“Windpower, irrigation projects and landslide-prone projects are also the focusedbusiness of FCN over the next five years,” Khoa added.
“Profitis forecast to decrease in the first quarter of 2020 due to the impact ofCOVID-19, but the signing of new contracts is a bright spot, which createsmotivation for construction enterprises in the next quarters,” he said.
InMarch 2020, the construction conglomerate Cotec Construction Joint StockCompany (CTD), signed two new high-class project contracts, raising the totalvalue of contracted sales to more than 5 trillion VND in the first quarter.
Thetwo projects are the Complex Building, covering an area of 8,320 square metreswith 1,074 luxury apartments in District 1, HCM City and the Metropole Thu Thiem project in District 2, HCM City.
“Thisachievement was earned by concerted efforts of all leaders and employees,despite the common difficulties amid the COVID-19 pandemic,” said a leader ofCTD.
Hoa BinhConstruction Group JSC (HBC) had made efforts to expand the market despitedifficulties caused by disease, participating in many projects includinginfrastructure projects abroad, with a total contract bidding value of morethan 26 trillion VND so far,said Le Viet Hai, HBC Chairman of the Board of Directors.
Accordingto HBC, in 2020 profit earned from civil construction and industrialconstruction will account for 60 – 65 percent, profit from infrastructuresegment will gradually increase the proportion to 35 to 40 percent.
Inorder to participate in the field of infrastructure construction, HBC haspurchased a 57-percent stake of the 479 Company - a unit separated from Cienco4 Corporation, specialising in infrastructure construction, with experience inlarge-scale infrastructure projects throughout the country.
Xuan Mai Construction and Investment JSC (XMC)saw revenue and profit in the first quarter of 2020 decrease sharply comparedto the same period in 2019, because many construction works had to betemporarily suspended due to the COVID-19pandemic.
InQ1, the company’s revenue was estimated at 175 billion VND, a half decrease compared to the sameperiod last year.
Onthe stock market, stocks of the construction industry have declined sharplyrecently. Price-earnings (P/E) ratio is still lower than that in the period of2016, according to Dao Hong Duong, Director of Analysis at PetroleumSecurities Company (PSI).
Headded that the construction stock group would witness strong fluctuation in themonths to come.
“Thisgroup is being negatively affected under pressure from foreign net selling,”Duong said.
“Whenthe negative effects are over, construction stock group may recover strongerthan the market average, especially when businesses begin to receive disbursedcapital from public investment stimulus package,” he said./.
VNA
