COMPANY OVERVIEW Ricons Construction Investment Joint Stock Company was established in 2004 with the main activities of investing and trading real estate with two outstanding projects: Botanic Towers and Saigon Pavillon. In 2008, Ricons expanded its operations to construction. Ricons appeared in Vietnam’s 500 largest enterprises for the 1st time and was ranked 4th among 500 largest private construction contractors in Vietnam. Currently, Ricons is one of the construction companies and holds the third position in terms of market share after only two companies, ConteCons and Hoa Binh. As a member of Coteccons Group - CTD now owns a 20% stake in Ricons - Ricons inherited all the top value from the leading construction corporation of Vietnam. In more than 12 years of development, Ricons has gradually affirmed its brand and reputation in the market. A wide range of projects ranging from design to construction, management and execution of high-rise buildings, hotels, resorts, industrial workshops of large scale, contract value up to trillions are greatest demonstration for the success of Ricons today.
DEVELOPMENT AND PROSPECTS Ricons' revenues come from four major areas: design and construction, real estate, mechanical
and electrical sector and other infrastructures. Ricons' outstanding clients include Novaland, Vingroup, VinaCapital, Brotex, Tan Hoang Minh, My Dinh, etc. In 2016, Ricons has completed many large projects such as Vinhomes Thăng Long, Vinhomes Golden River, The Pegasuite, Saigon Royal Residence... NEW PROJECTS IN Q3 AND Q4 2017 AQUA 1 - VINHOMES GOLDEN RIVER On July 26, 2017, Ricons Company, Coteccons and Vingroup Investors successfully lauched the Aqua 1 roof for the Vinhomes Golden River project, District 1 HCMC. In particular, Aqua 1 (50 floors high) is the tallest tower in the cluster. Successful completion of this tower has received much attention from investors as well as the market.
CONDOTEL DA NANG On the morning of August 17, 2017, Coteccons - Ricons General Contractor and Owner of Riverview Complex Co., Ltd Danang successfully held the ceremony of Condotel Danang project at Ngo Quyen street, An Hai Bac ward, Son Tra district , TP. Danang. Up to now, the project is one of the tallest buildings in Danang. This is also the first Condotel project to be launched in the city with international quality and 5 star class.
RIVER PANORAMA The project, commissioned by Ricons Design & Construction (D & B), worth VND2,500 billion, was kicked off on August 17, 2017. This is the fourth project marking the strategic partnership between the investor An Gia Investment and Ricons after success from a series of real estate projects such as An Gia Star, An Gia Skyline and An Gia. Riverside.
AN GIA RIVERSIDE Located in Sala residential area, Phu Thuan ward, District 7, the project has a scale of 1 basement, 25 floors and 274 apartments. This is a project that Ricons implemented from the end of 2015 and handed over in the past Q3.
SUNRISE RIVERSIDE The project started on 23/09/2017, marking a new development in the partnership between Ricons and Novaland. With the contract value of over 300 billion VND, Ricons will construct the body structure and complete block E, including two 20-storey towers.
PARK 4 - VINHOMES CENTRAL PARK Park 4 is located in Vinhomes Central Park (Binh Thanh District, HCMC) with 43 floors and 162m height. By the end of September 2017, Ricons had officially completed and handed over the project, meeting all requirements of quality - safety - progress and aesthetics. In particular, the project also received the Safety Award of Coteccons Group with the achievement of absolute safety in construction.
SWANBAY On october 27, 2017, Ricons Company lauched ceremony of Hoa Sen Dai Phuoc project in Dai Phuoc commune, Nhon Trach district, Dong Nai province. SwanBay Dai Phuoc is a luxury resort with standard resort on the island. In particular, up to 65% of the project area for landscaping, parks and public facilities brings fresh air, ensuring the highest quality of life for residents living here. ROYAL HOTEL Recently, Cao Bang Royal Joint Stock Company has officially launched the project Royal Hotel with Ricons construction. The project is located in the center of Cao Bang City, 42 Kim Dong Street, Hop Giang Ward. The project is a combination of 4-star hotel with offices and serviced apartments with two basements and 20 floors. Expected to be completed in the fourth quarter of 2018, the project will provide more than 200 hotel rooms and apartments for high-end market.
TEXHONG HAI HA FACTORY Recently, Ricons Company continues to receive the winning bid for Texhong Hai Ha Fibers Factory, which is owned by Texhong Ngan Ha Science Technology Co., Ltd. The project is located in Hai Ha Texhong Industrial Park, Hai Ha District, Quang Ninh Province. Participating in project, Ricons is responsible for the construction and finishing of the fiber factory of the project with a total construction area of 61,500 m2. AQUA BAY Recently, the company continued to win the project of Vinh Thuy apartment area - Aqua Bay in Hung Yen, owned by Viet Hung Investment and Urban Development JSC. This is also the third project in the North assigned from Ricons in the first two weeks of December, after the Royal Hotel (Cao Bang) and Texhong Hai Ha (Quang Ninh). The project is located in Ecopark urban area, Xuan Quan commune, Van Giang district, Hung Yen province. Ricons will be the main contractor for the construction of high-rise apartment towers from 30 to 37 floors. FINANCIAL PERFORMANCE Income Statement Annual YoY Growth in Millions of Vietnamese Dong
Period End Date Revenue 1Y Growth Gross Profit 1Y Growth Net Income Before Taxes
Period End Date Assets (VND Millions) Cash and Short Term Investments 1Y Growth Cash 1Y Growth Cash & Equivalents 1Y Growth Short Term Investments 1Y Growth Accounts Receivable - Trade, Net 1Y Growth Accounts Receivable - Trade, Gross 1Y Growth Provision for Doubtful Accounts 1Y Growth Total Receivables, Net 1Y Growth Receivables - Other 1Y Growth Total Inventory 1Y Growth Inventories - Other 1Y Growth Prepaid Expenses 1Y Growth Other Current Assets, Total 1Y Growth Other Current Assets 1Y Growth Total Current Assets 1Y Growth
Property/Plant/Equipment, Total Gross 1Y Growth Other Property/Plant/Equipment - Gross 1Y Growth Property/Plant/Equipment, Total Net 1Y Growth Accumulated Depreciation, Total 1Y Growth Goodwill, Net 1Y Growth Intangibles, Net 1Y Growth Intangibles - Gross 1Y Growth Accumulated Intangible Amortization 1Y Growth Long Term Investments 1Y Growth LT Investments - Other 1Y Growth Note Receivable - Long Term 1Y Growth Other Long Term Assets, Total 1Y Growth Deferred Charges 1Y Growth Defered Income Tax - Long Term Asset 1Y Growth Total Assets 1Y Growth Liabilities (VND Millions) Accounts Payable 1Y Growth Payable/Accrued 1Y Growth
Accrued Expenses 1Y Growth Notes Payable/Short Term Debt 1Y Growth Current Port. of LT Debt/Capital Leases 1Y Growth Other Current liabilities, Total 1Y Growth Customer Advances 1Y Growth Income Taxes Payable 1Y Growth Other Current Liabilities 1Y Growth Total Current Liabilities 1Y Growth
Total Long Term Debt 1Y Growth Long Term Debt 1Y Growth Total Debt 1Y Growth Deferred Income Tax 1Y Growth Minority Interest 1Y Growth Other Liabilities, Total 1Y Growth Reserves 1Y Growth Other Long Term Liabilities 1Y Growth Total Liabilities 1Y Growth
INVESTMENT HIGHLIGHTS AND GROWTH DRIVERS It is anticipated that Ricons will be listed in stock exchange next year and will attract a lot of investors' attention for its steady and sustainable growth drivers as Ricons continue to achieve great success. Over the past three years, Coteccons, Ricons's parent company, has grown more than 340% in price, so if Ricons is operated by the same board of directors with such experiences and reputations, the company is expected to grow strongly in the future. According to forecasts of economic experts, the real estate market is in a period of recovery, growth and is greatly supported by the economy of Vietnam. So Ricons will benefit greatly from the real estate market in the future.
VALUATION In 2016, Ricons revenue increased by 70% to VND 4,790 billion, profit increased by 138% to VND 192 billion YoY. The target of 2017 revenue and profit is expected to grow by more than 60% based on the company's projects signed and forecasted to grow over 40% in 2018 and 2019 Financial Forecast RICONS NPAT GROWTH P/E MARKET CAP SHARES PRICE
2017 320 60% 16 5120
2018 480 50% 14 6720
2019 696 45% 12 8352
2020 974.4 40% 10 9744
With its true value proposition - Quality, Commitment, Sincerity, Security, Integrity, Ricons is expected to continue to grow and become a leading construction company with largest capitalization in the industry.