After a successful year in all aspects, Sao Mai Construction Corporation (stock ticker ASM) held the 2010 announces the 2010 Annual General Meeting on March 20, 2010. The meeting drew a large number of investors as this was the first time ASM organised the meeting as a member on the Hochiminh Stock Exchange (HOSE) - the primary bourse in Vietnam. ASM is a top pick for many investors in Vietnam. On the sidelines of the gathering, the Vietnam Business Forum reporter had an exclusive interview with Mr Le Thanh Thuan, President and General Director of Saomai Conscorp.
The year 2009 was a very tough time for any companies but Sao Mai still made noteworthy successes. Could you tell your company’s achievements?
In 2009, most of companies faced numerous difficulties arising from the global economic crisis. In 2009, although Sao Mai Group was unable to complete several construction projects due to capital shortage, it still managed to beat annual targets approved by the 2009 Annual General Meeting thanks to the profound knowledge, sound forecast and flexible governance of the Board of Directors and the Board of Managers as well as the efforts of all staffs. Specifically, the revenues reached VND547 billion in 2009, 82 % higher than the yearly target of VND300 billion) and the pre-tax profit climbed to VND68 billion, 127 % above the initial target of VND30 billion.
Would you mind tell what helped Sao Mai Group achieve sales and profit amid market turmoil?
Good 2009 results came from successful operation of seafood export projects. Sao Mai Group's profit exceeded the yearly plan by 27 %, mainly coming from real estate - the main business of the company. Besides, basing on business results in 2009 and business outlooks in 2010, the real estate continues to be the main source of the group’s profit. Additionally, other activities like restaurant, hotel, office for leasing, construction and fisheries will also generate revenues and profits for the group.
In general, 2009 was a successful year of Sao Mai An Giang in all aspects.
What are Sao Mai Group’s objectives and plans in 2010?
As I said, real estate is our main business and it will continue to the greatest contributor to the earnings structure. At present, Sao Mai Group has many projects and some of them will be completed in 2010 and some in following years. Therefore, to ensure the supply when the real estate market is hot and to maintain growing rate of annual revenues and profit, we will continue implementing several potential construction projects to be completed in 2010, including Hoi An market and residence centre in Cho Moi district, An Giang province, Sao Mai high-grade urban zone in Tinh Bien town, Tinh Bien district, An Giang province, Tri Ton residence and commercial centre project in Tri Ton town, Tri Ton district, An Giang province, and Sao Mai residence project in Cai Dau town, Chau Phu district, An Giang province. At the same time, the company also accelerates land compensation when the price is low to widen the return margin.
As regard seafood export, to stabilise prices of raw materials and address material shortage happening in previous years, the group will expand farming areas, cooperate with farmers to culture fish and provide technical support to ensure material quality, reduce costs, increase revenues and profit. In addition, the group has focused on expanding export markets and seeking new ones to minimise risks arising from excessive reliance on a few markets.
The restaurant, hotel and office leasing service have a high return on revenues, thus bringing in high economic efficiency for the company in the past years. Hence, in 2010, we will step up improving service quality to maintain regular customers and stabilise revenues and profit. At the same time, we will expand hotels for lease, restaurants and transportation services - our new business - to meet the growing demand of our customers.
Respecting construction, in 2010, we are still primarily focusing on our own construction projects to reduce investment costs and undertaking new projects to transfer to subcontractors.
From what we made in 2009 and we forecasted for 2010, we expect to make revenue of VND600 billion and net profit of VND80 billion and pay a dividend payout ratio of 30 %.
That is the plan for 2010. What about longer plans of Sao Mai Group?
We will tune up our strategies on the basis of market developments. However, to implement investment projects with high effectiveness, in the 2010-2012 period, we will study and calculate the demand of real estate market for our specific projects. Hence, in addition to investment projects to be completed and operated in 2010 as I said, we have completed investment development plans for the next three years. We will complete legal construction procedures for high-end apartment and office project in Ward 16, District 8, Ho Chi Minh City, which will be completed in the 2010-2012 phase. We will compensate and build infrastructure for Sao Mai Binh Khanh 5 urban zone, complete legal procedures for approved projects for soon investment and operation. At the same time, we will constantly search for new land plots in Ho Chi Minh City, An Giang province and some neighbouring provinces.
Reported by Quoc Hung
Vietnamese
