Part Three
CAVICO CORP. (NasdaqCM: CAVO)
When I started this serie of articels dedicated to a ways to investment in Vietnam, there wasn't a single Vietnam company listed on NYSE, NASDAQ or LSE. In a meantime, on November 1, 2010, Cavico Corp. closed its previously announced public offering of common stock of shares, including shares conformable to the over-allotment option. So, Cavico Corp. became the first Vietnamese company to be listed on a U.S. national securities exchange on the Nasdaq Capital Market under the ticker symbol: CAVO.
Population of 87 million people is very young. Vietnam offers low-cost but hard-working and highly ambitious, 50 milion numerous labor force. The middle class is growing strongly. The country joined the WTO in 2007. Political stability and modernisation, as well as favorable demographics, geography and growth fundamentals, make Vietnam one of the most dynamic economies in the entire World. It has been growing at an average rate of about 7% during the past decade. Vietnam’s infrastructure build-out and modernization are in the early stage and Cavico is well positioned to benefit from the large projects that the government has planned for the country over the next several years. Cavico is an important player in the infrastructure development of Vietnam’s growing manufacturing industry. Government’s $8 billion stimulus package beginning in May 2009 focused on improving country’s infrastructure. Only fields of industry and construction will reach 43 – 44 % of total GDP for 2010.
Cavico Corp. was founded back in the year 2000 with a view focused over the building activities and development of the country. It is the largest private heavy civil construction contractor in Vietnam with approximately 3,500 employees including 800 engineers. The company provides construction and engineering services for civil construction infrastructure projects being focused on large infrastructure projects such as construction of: tunnels, roads, hydropower facilities, dams, bridges, mines, highways, urban buildings and wind farms. Also, Cavico is investing in hydropower facilities, cement production plants and urban developments in Vietnam and Laos. Also, it engages in trading machinery, equipment, and materials for civil construction industry, cement factory and tourism zone operation, stone exploitation business and steel fabrication business, as well as leasing machinery and equipment. The Company has two subsidiaries, Cavico Mining (MCV) and Cavico Industry and Mineral (CMI), that are listed in Vietnam on the Ho Chi Minh and Hanoi Stock Exchanges. Cavicorp continues adding construction capabilities expanding into foreign markets such as: Laos, Algeria and Australia.
The major part of the Company’s contracts enter into middle development stages, during which the Company recognizes the largest portion of revenue and achieves the highest margins. Cavico is involved in approximately 90% of hydropower construction projects, 10% of long highway/road development projects; more than 60% of the total quantity of tunnel construction works and about 5% of the open cut mining construction projects;The company is engaged primarily in the public sector being headquartered in Hanoi and counting with a network of offices throughout Vietnam including an office in Australia. Cavico Corp. is based in Huntington Beach, California. For Investor & Media Relations is engaged Redchip Company , Inc.
Last Trade: $1.94 (Nov.30, 2010)
- 0.06 (-3.00%)
Prev Close:2.00Open: $1.85
52wk Range: $1.65 - $6.21
Volume: 60,228
Avg Vol (3m): 10,369
Market Cap: 5.91M
Shares Outstanding: 4,0M
Revenue (ttm): $58,5M
Gross Profit (ttm): $3M
Gross Margin: 5%
EPS (ttm): -2.63
Div & Yield: /
Ticker - NasdaqCM: CAVO
Links:
www.cavicocorp.com
www.cavicovn.com
www.RedChip.com
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