Viettel to divest from three affiliates hinh anh 1An employee at Viettel Post Joint Stock Corporation (Photo:

Hanoi (VNS/VNA) - Vietnam's biggest telecom firm Viettel plans to divest capital in three affiliates to over 50 percent of capital this month and next month.

They are Viettel Post Joint Stock Corporation (VTP), Viettel Construction Joint Stock Corporation (CTR) and Viettel Consultant and Design Joint Stock Company (VTK).

VTK is trading on the Unlisted Public Company Market (UPCoM) with a market price of around 24,000 VND per share. Its market capitalisation totals nearly 100 billion VND (4.3 million USD).

The company is the designer of the five North-South optical fiber lines with a total length of over 8,500km and nearly 190,000km of branched fiber optic cable lines.

VTK can take advantage of Viettel’s ecosystem to expand business activities along the border. By the end of 2019, the company had provided services in six foreign markets of Laos, Cambodia, Mozambique, Cameroon, Haiti and Peru.

The company targets to reach revenue of 200-350 billion VND by 2025, as well as pre-tax profit of 30-40 billion VND.

It plans to maintain a stable dividend rate of 10-20 percent per year in the 2020 - 2025 period. This year, the company expected revenue to touch 136 billion VND, with profit of over 16 billion VND and dividend payout rate of 15-20 percent.

CTR is trading on UPCoM, with a market price of more than 41,000 VND and market capitalisation of nearly 3 trillion VND.

This is the largest operator of the infrastructure network in Vietnam. In 2019, while other units in the same industry had declining business results, CTR grew strongly thanks to the promotion of construction activities.

Last year’s consolidated revenue and post-tax profit reached 5 trillion VND and 181 billion VND, respectively, up 18 percent and 23 percent year-on-year.

In the first six months of 2020, its revenue reached 2.7 trillion VND, up 11 percent year-on-year. Post-tax profit touched 98.4 billion VND, up 28 percent against last year.

CTR aims to expand the provision of construction operation services in foreign markets, developing solutions in smart energy for telecommunications as well as other industries. It expected revenue to reach 10 trillion VND to 11.4 trillion VND by 2025, and pre-tax profit to reach 300-500 billion VND.

VTP is also trading on UPCoM with a market price of more than 104,000 VND, equivalent to market capitalisation of about 8.7 trillion VND.

The company focuses on three main business segments of delivery services, logistics services and trade and services.

It recorded very strong growth in both revenue and market share and holds 21 percent market share in the delivery market. The unit owns a nationwide delivery network of 2,200 post offices, 827 shops and 469 postal service points.

In the last five years, Viettel Post's revenue maintained a high growth rate of over 40 percent per year. In 2019, net revenue from selling goods and providing services reached 7.8 trillion VND, posting a growth of 58.7 percent. This figure is higher than the average growth of companies in the delivery industry of 49.4 percent and outstripped the growth of 8.7 percent of the transport and warehousing industry.

In the 2015-2019 period, the after-tax profit growth rate averaged 59 percent per year. Post-tax profit in 2019 reached more than 380 billion VND, marking a growth of 36.2 percent compared to 2018. This growth rate is higher than that of the delivery industry of 33.4 percent and many times higher than the figure for the transportation and warehousing industry of 7.6 percent.

In the first six months of 2020, as many businesses were affected by the COVID-19 pandemic, Viettel Post still recorded positive results in production and business activities. Its net revenue reached nearly 6.8 trillion VND, up to 125.3 percent year-on-year. Post-tax profit rose by 21.2 percent to touch nearly 200 billion VND.

The company aims to become the top delivery company in Vietnam by 2025 with revenue between 18-23 trillion VND, and pre-tax profit of 1.2-1.4 trillion VND./.