Vinasun to cut revenue forecast TAC increases dividend by half to 24 per cent
HAØ NOIÄ Taxi firm Vietnam Sun Corporation (Vinasun) plans to cut its full-year revenue for the fourth time for 2018 due to rising competition from foreign ridehailing firms.
The figure for 2018 could be set at VNÑ2.16 trillion (US$96 million), down VNÑ1.07 trillion year-on-year, of which transportation and merchandise income would account for VNÑ2 trillion and the remainder would come from asset sales.Vinasun also forecasts its post-tax profit for this year would be VNÑ95 billion, half of the figure in 2017. This is the lowest figure for the firm in the past nine years.
The earnings forecast would be submitted for approval at the firms annual shareholder meeting, which is scheduled for April 27. The company has not yet published its full-year financial report for 2017. In 2018, the taxi company will focus on preserving its market share and keeping its business operating properly in the face of strong competition from rival ridehailing applications.
In order to do that, Vinasun will buy at least 700 high-quality vehicles, develop its non-cash payment methods and diversify its business co-operation models.
In addition, Vinasun will propose the transport ministry categorise business activities of ride-hailing applications to assure a fair market for domestic taxi firms. Vinasun has reported slower growth rates in both net revenue and profit since the two ride-hailing applications Uber and Grab entered Vieät Nam in mid-2014.
From 2010-15, Vinasuns net revenue increased from over VNÑ1.64 trillion to VNÑ4.25 trillion. The HCM City-based taxi company also recorded that its post-tax profit grew from VNÑ179.4 billion to VNÑ329.3 billion. In 2016, however, the companys net revenue grew at a slower pace to reach VNÑ4.5 trillion, while its post-tax profit fell to roughly VNÑ312 billion.
In the first half of 2017, Vinasun performed even worse as its net revenue dropped 16 per cent year on year to VNÑ1.9 trillion and its posttax profit declined by a third to VNÑ100 billion. The taxi firm is listing nearly 68 million shares on the HCM Stock Exchange. Its shares have dropped gradually by nearly 60 per cent since September 28, 2016 to close yesterday at VNÑ13,400 (60 US cents) per share.
According to Vinasuns deputy general director Taï Long Hyû, the merger between Uber and Grab in Vieät Nam could result in a monopolistic taxi market and local taxi companies could suffer from such a market condition. After Uber and Grab merged, the total number of ride-hailing app vehicles had increased to 78,000 across the country and that number was much bigger than 20,000 traditional taxis in Vieät Nam, he said.
The number of high-tech taxis is accounting for 80 per cent of the overall market, which could lead to a market monopoly for the foreign firm. And it is the question on how the Government would solve the problem, cafef.vn cited Hyû as saying.
Traditional taxi firms would have to adapt to new market conditions, he said. Vinasun has developed an application to meet rising demand from customers and keep up with market trends. In the near future, both taxi drivers and passengers would know exactly how much a fixed trip would cost based on the expected travel distance in the application, just like other ride-hailing firms, instead of using the meter to calculate the fares for passengers, he said. VNS HCM CITY Cooking oil producer Töônø g An Vegetable Oil Joint Stock Company (TAC) announced an increase in the dividend for last year to 24 per cent from the earlier plan of 16 per cent at its annual shareholders meeting yesterday.
It came on the back of outstanding business results, with pretax profits growing by over 98 per cent to VNÑ166 billion (US$7.3 million).
Revenues only rose by 9 per cent to VNÑ4.3 trillion ($188 million).
The company attributed the results to the strong growth in the economy and the cooking oil market. Nguyeãn Thò Haïnh, chairwoman of TAC, said: The cooking oil industry is expected to grow by 8.7 per cent in 2015-20. Consumption in Vieät Nam is still lower than in neighbouring countries.
TAC last year made changes to its product portfolio with a focus on healthy products, she said.
Haïnh also hailed the merger with food producer KIDO Group.
The merger with KIDO has helped us develop our logistics and distribution systems.
She said the company was now the second biggest cooking oil producer.
The meeting also approved a 24 per cent dividend for this fiscal year. In 2018, TAC targets pretax profits of VNÑ250 billion on revenues of VNÑ5.1 trillion ($223.6 million).
Haïnh told the meeting the targets were challenging but achievable since demand remained huge.
TAC plans to enter new segments with a focus on high-end products to meet the relentlessly growing demand for healthy products, she revealed.
We will partner with domestic and foreign investors to enter the canned/packaged products market including sugar, instant noodles, sauces and spices.
The company would continue to expand its distribution system, she said.
TAC, established in 1977, has a two plants each in Ngheä An Provinces Vinh City and Baø Ròa Vuõng Taøu Province. VNS