FLC Group has set a pre-tax profit target of VND1.1 trillion ($48.2 million) for 2021, a 163 percent increase over last year. 

FLC Grand Hotel Quy Nhon in the central province of Binh Dinh.
Photo by VnExpress/Tuan Ho.

At its annual general meeting Monday, the private conglomerate, which has interests ranging from property development to aviation, also announced a revenue target of VND15.2 trillion.

La Quy Hien, its deputy CEO, said the company has such a high profit target because this year it would complete 20 property projects and hand over units to buyers.

The economic recovery and the end of the Covid-19 pandemic are also expected to be factors, he added.

Chairman Trinh Van Quyet said subsidiary Bamboo Airways plans to expand its fleet from 22 to 40 aircraft this year and increase its market share by 10 percentage points to 30 percent.

As its fleet expands, it plans to hire around 1,000 pilots, flight attendants, technicians, and ground staff.

The carrier plans to carry out an IPO and list its shares in the second or third quarter this year.

Quyet and FLC Group are the two largest shareholders in Bamboo Airways, with a combined holding of nearly 90 percent.

FLC Group shareholders approved an increase in its charter capital by 70 percent to VND12 trillion through a rights issue of shares to existing shareholders. It will issue nearly 500 million shares in the second quarter at a ratio of seven shares for every 10 they own.

Ninety percent of the money raised will be used to fund eight property projects including resorts, apartments and a golf course.

Its shareholders have also approved an issue of convertible bonds for three years. The money raised will be used to fund its urban area projects in the southern provinces of Soc Trang and Hau Giang and the northern province of Ha Giang.

It will not pay dividends for 2020, but will pay for this year.

FLC was forecast to suffer a loss of VND2 trillion in 2020 due to the Covid-19 pandemic, but it turned in a pre-tax profit of VND421 billion on revenues of VND13.5 trillion.