Thanh Thanh Cong Industrial Park Joint Stock Company (TTCIZ) received a credit rating of 'vnA' and a 'Stable' outlook from the reputable rating agency Saigon Ratings.
TTC IZ is a member unit of TTC Group – one of the leading multi-sector investment economic groups in Vietnam, operating in the fields of: Agriculture, Energy, Real Estate, Industrial Real Estate, Tourism and Education, with more than 120 affiliated units in provinces and cities nationwide and in Laos, Cambodia, Singapore, Australia, etc.
TTC IZ is the core of Thanh Thanh Cong Industrial Real Estate Corporation (TTC IR). TTCIZ's main business areas include investing in, constructing, and operating industrial park infrastructure and related services for customers within the industrial park; leasing warehouses and factories; operating inland waterway ports; and providing comprehensive logistics services.
With the aim of increasing transparency and objectivity regarding the quality and efficiency of its operations, TTC IZ proactively sought independent credit ratings from a third party to provide reliable information and risk assessments for shareholders, partners, customers, and investors. Accordingly, on May 26, 2023, Saigon Ratings announced the credit rating for TTC IZ at 'vnA' with a 'Stable' outlook.
Saigon Ratings assesses that TTC IZ implements a prudent financial policy and its current financial risk is low. This is reflected in the gradually decreasing leverage ratio during the 2020-2022 period. Although the potential for increasing leverage in the next two years through increased borrowing is considered positive, as the borrowing is for project expansion in line with the strategic cycle. Despite increased financial leverage, the company still ensures its ability to meet its financial obligations due to its relatively good cash liquidity and the ability to secure long-term financing.
The outlook for TTC IZ is assessed as 'Stable,' with the expectation that over 50 hectares of remaining commercial land will continue to be leased to customers in 2023. The two target markets are (i) the domestic market: focusing on exploiting existing customers who are looking to expand or relocate their production activities, and (ii) the international market: Singapore, Japan, South Korea, and the EU – countries that are shifting investment trends away from China. Also in 2023, TTCIZ will take over the high-end warehouse system at Tra Noc Industrial Park, Can Tho, and the warehouse system in Hai Phong, and bring a portion of the Port Warehouse project into operation, contributing to diversifying products and services as well as increasing stable revenue from this leasing activity.
In its business development plan for the next two years (2024-2025), the company will continue to expand its existing industrial parks, invest in industrial parks in Long An, and industrial clusters in Tay Ninh. Revenue from industrial park leasing is projected to achieve a compound annual growth rate of 22% during the 2023-2025 period. The above credit rating is thanks to the trust and support of our valued partners, customers, and shareholders, which motivates TTC IZ to continuously improve its technical infrastructure, especially the landscaping of its industrial parks, and to build smart, eco-friendly industrial parks in line with its strategic direction. sustainable green developmentIn addition, with its competitive land lease pricing policy compared to other industrial parks in the region, TTCIZ has the potential to maintain stable revenue growth over the next 24 months.
