Tuesday, August 14 2018

VietNamNews

Firms dole out cash dividends on high profits

Update: November, 17/2017 - 11:00
PV Gas (GAS) is the biggest payer, and will spend about VNĐ1.9 trillion to pay a 10 per cent dividend to its stakeholders on December 13. — Photo cafef.vn
Viet Nam News

HÀ NỘI — Many listed companies have decided to loosen their purse-strings by paying cash dividend for stockholders, after reporting upbeat business results.

According to Vietstock’s data, by mid-November, some 31 companies have announced a cash dividend scheme to be paid through the end of this year.

In fact, four enterprises will pay cash dividends at the rate of 20 per cent each in December. They include Bình Điền Fertiliser JSC (BFC), Đình Vũ Port Investment and Development JSC (DVP), Đức Thành Wood Processing JSC (GDT) and Lix Detergent JSC (LIX).

Except for LIX, the other three companies reported positive growth in the first three quarters of this year.

Ending in September, Đình Vũ Port earned net profit of VNĐ224.4 billion (roughly US$10 million), a four-fold increase over the same period last year. Meanwhile, Bình Điền Fertiliser recorded after-tax profit of VNĐ210 billion in the nine month period, an increase of 27 per cent, year-on-year.

Đức Thành Wood Processing’s business also improved, with net profit in the nine months reaching VNĐ79 billion, up 47 per cent year-on-year.

Further, fifteen companies have decided to pay cash dividends of 10-16 per cent.

Among them, PV Gas (GAS) is the biggest payer, and will spend about VNĐ1.9 trillion to pay a 10-per-cent dividend for its stakeholders on December 13. The company plans to pay a total 30 per cent cash dividend for 2017, lower than 2016’s 40 per cent rate. Previously, it paid 10 per cent in October.

The gas company reported the parent company’s consolidated net profit of over VNĐ5.9 trillion, ending in September, up 47 per cent year-on-year and exceeding the yearly target by 12 per cent.

Meanwhile, a 12-per-cent cash payout will cost Thác Mơ Hydro Power JSC (TMP) about VNĐ84 billion. The company witnessed impressive growth in its net profit, which soared to over VNĐ238 billion in nine months, an increase which tripled compared to the 2016’s same period.

Đồng Phú Rubber also determined to spend some VNĐ43 billion to pay a 10-per-cent cash dividend, after its nine-month after-tax profit reached VNĐ207.5 billion, an increase of 140 per cent over the same period last year.

Generous losers

Not only are profitable companies generous in dividend payments, but even unprofitable firms have issued payments.

Rubber Real Estate Construction JSC (RCD), which is trading shares on the Unlisted Public Company Market (UPCoM), made an unexpected decision to raise its cash dividend for 2017 from 15 per cent to 50 per cent, scheduled to pay on January 15, 2018.

The company sharply lowered their business targets this year, with revenue of VNĐ151 billion and net profit of VNĐ14 billion for the entire year, compared with VNĐ920 billion and VNĐ110 billion in 2016. It has yet to provide financial information about 2017’s performance.

Tây Ninh Cable Car Tour Company (TCT) also will pay shareholders cash dividends at the rate of 27 per cent, despite its third-quarter profit declining 4 per cent year-on-year. Its share price, however, increased about 24 per cent in the past three months on the HCM Stock Exchange.

Lix Detergent and Bình Minh Plastics (BMP) will also pay 20 per cent and 15 per cent cash rates, respectively, in December, but both companies reported lower business results in the first nine months, compared to the same period of last year. — VNS

 

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