Vingroup targets 50 percent profit growth hinh anh 1A view of Vincom Mega Mall Royal City in Hanoi, developed by VinGroup. (Source:VNA)

Hanoi (VNS/VNA) - Private business conglomerate Vingroup is seeking shareholders’ approval for targets of 34 percent and 50 percent increases in revenue and net profit, respectively, this year.

In the documents sent to shareholders prior to its annual shareholders meeting, expected on May 31 in Hanoi, the board set a total revenue target of 120 trillion VND (5.3 billion USD) for the year, and a net profit of 8.5 trillion VND.

In the first quarter, the company earned 29.1 trillion VND in revenue and over 1 trillion VND in net profit, up 84 percent and 70 percent year-on-year, respectively.

Despite the news, Vingroup’s stock declined by nearly 7 percent on May 21 to close at 114,400 VND (5.02 USD) per share on the Ho Chi Minh Stock Exchange.

Vingroup is also planning a big dividend with a total rate of 21 percent, of which a 10 percent will be paid by stocks for 2017’s business results and another 11 percent will be paid in cash, being extracted from accumulative net profits as of the end of the first quarter of 2018. Total payment value will be more than 5.54 trillion VND, expected to be paid in the second quarter of 2018.

In addition, the board of directors will also present to the shareholders a plan to lift the foreign ownership limit to 49 percent after removing some divisions of the company.

Shareholders will authorise the board to review and make a list of restricted business lines, as well as carry out the necessary procedures to change the corporate business registration.

Foreigners currently hold about 10.2 percent of Vingroup’s capital according to data on the financial website as of December 31, 2016.

This year, VIC is planning to intensify its operations in all major fields including real estate, travel and entertainment, retail, healthcare, education and agriculture. At the same time, the company will also make further investment in the automobile industry with the ‘Vinfast’ brand.

The company will strengthen its presence in provinces nationwide, especially in the development of Vinmart and Vinmart retail chains. Regarding the quality of services, the company is still aiming for international five star standards, upgrading the infrastructure of the Vinpearl entertainment system and the Vinmec hospital system, enhancing the training quality of Vinschool and Vinuni.

In 2017, consolidated revenue of VIC reached 89.3 trillion VND, up 55 percent year-on-year, net profit touched 5.6 trillion VND, up 27 percent over the previous year. Earning per share (EPS) was 1,816 VND.-VNA