Thanh Thanh Cong Tourist Joint Stock Company (TTC Hospitality - VNG) has just released their business statement for quarter I – 2018.

This is one of five segment companies of TTC Group, which operates in five key fields, including sugarcane (SBT), real estate (SCR), hospitality (VNG), energy and education.

In the first quarter of 2018, VNG witnessed prospective business performance. The company has been able to accomplish its plan of 2018 by using M&A strategy to increase business scale, accumulating assets, and opening new and attractive chain of tourist packages.

This strategy will help develop diverse tourist packages in comprehensive model of Travelling (TTC Travel) – Hotel (TTC Hotel) – Amusement Park (TTC World) – Restaurant (TTC Palace), consolidating centralized management advantages, reducing expenses, and improving business performance.

The company’s total assets (TA) reached VND1,686 billion (US$75.59 million) on March 31, 2018. The amount is five percent higher than that in the beginning of this year and is contributed mainly by short-term receivables and fixed assets.

Construction in progress in the first quarter is around VND67 billion and is attributed from several hotels and amusement parks that have been built since 2017.

As of March 31, 2018, owner’s equity is six percent as high as that figure at the beginning of this year, going up from VND994 billion to VND1,053 billion. The increase is mainly from undistributed earnings (UE) and profit from non-controlling shareholders.

VNG’s liquidity indicators tend to increase compare to the ratio at the beginning of this year. Particularly, current ratio increased 16 percent from 1.67 to 1.93, quick ratio increased 16 percent from 1.58 to 1.84, ensuring liquidity indicators to be in safe limit.

The company’s debt to total assets ratio and debt to owner’s equity on March 31, 2018 are 0.37 and 0.60, respectively. The two debt ratios are slightly lower than those at the beginning of this year and are lower than those of TTC Hospitality’s average numbers, which are 0.39 and 0.64 respectively.

TTC Hotel Premium - Michelia

VNG is maintaining the capital structure ratios and financial risks in accepted limit to ensure effective performance.

Net revenue is VND265 billion which achieves 30 percent of annual plan. This net revenue is 350 percent as large as net revenue of the same period of last year thanks to revenue unification of the 3 subsidiaries. In addition, the performance is resulted from industry-average occupancy rate of four-star hotel group and above industry-average occupancy rate of three-star hotel group.

To be more specific, TTC Hotel Premium Michelia topped 87 percent, TTC Hotel Premium Ngoc Lan 84 percent are the highest among four-star hotels.

Meanwhile, TTC Deluxe Airport 87 percent and TTC Deluxe Tan Binh 80 percent are the representatives of the three-star hotel group. Average price is higher than that of the same period of last year and even exceeds the plan target.

For example, four-star hotel price is eight percent and seven percent higher than the price noted in annual plan and the price at the same period last year respectively. Three-star hotels price is eight percent and two percent as large as the price noted in annual plan and the price at the same period last year respectively.

One spotlight is that profit before tax (PBT) in the first three months of 2018 topped VND72 billion and is 25 times higher than that of the same period last year, achieving 94 percent of the annual plan approved in Annual General Meeting of Shareholders.

This accomplishment is due to (1) consolidated business performance with subsidiaries, (2) exceeding revenue while expenses are under control, and (3) selling real estate investment. Profit after tax (PAT) of the first quarter was VND58 billion and shows a 3,525 percent yearly increase.

In late 2017, VNG was running 17 destinations at strategic areas of seven key tourist cities/provinces, including 12 hotels, two conventional centers/restaurants, three amusement parks, and one travel agent.

VNG holds seven percent of Hospitality market share in operating cities/provinces, serving about 2.6 million turns of middle and upper-class tourists.

By 2020, the company expects to open 12 more destinations based on potential and national location, including one foreign destination.

TTC Hospitality aims to serve more than four million turns of tourists, and gradually proves the dominance in Vietnam’s Hospitality industry.

Possessing long–term vision and strategy in developing comprehensive business chain of four major fields, VNG also expects that net revenue and total assets will respectively peak VND2,132 billion and VND4,882 billion by 2020. VNG has the biggest capitalization hospitality industry in Vietnam.

VNG’s capitalization occupies 15 percent value of total industry capital, and is 1.3 times higher than that of the following company in this field.