Petrolimex Insurance Corporation (PJICO – HoSE: PGI) recently released documents for the 2024 Annual General Meeting of Shareholders.
Accordingly, by the end of 2023, PJICO earned a total revenue of VND 4,847.6 billion, completing 100.2% of the plan. Of which, original insurance revenue reached VND 4,023.4 billion, completing 96.9% of the plan. In particular, the company's after-tax profit reached 11% of the set target, earning VND 283.7 billion.
In 2024, PJICO aims to achieve total revenue of VND4,768.5 billion, of which original insurance revenue is VND4,024 billion (not lower than the results achieved in 2023). The company targets pre-tax profit in 2024 at VND288.8 billion and plans to pay cash dividends at a rate of 10% of charter capital.
According to PJICO, the world economy in 2024 will continue to face many difficulties and challenges. According to a survey forecast from economists, the global economy will continue to weaken in 2024. Although the global economic recession is easing, domestic political and geopolitical issues are still very difficult due to the impact of tight monetary policy, the Russia-Ukraine conflict, and the Israel-Hamas conflict in Gaza that shows no signs of stopping.
Motor vehicle insurance is the backbone of the market, accounting for a high proportion and facing many difficulties due to continuously decreasing vehicle prices, weak market demand and expected to last until 2024.
According to Citigroup's global commodity research department, world oil prices in 2024 will tend to decrease, the decline could be up to 30-50% compared to oil prices in 2023, accordingly, PJICO's cargo insurance revenue may decrease accordingly.
Bank interest rates are still falling sharply, especially for the Big4 group, at 4.5-5%/year, down about 35 percentage points compared to the average deposit interest rate in 2023. Accordingly, deposit investment revenue in 2024 will decrease significantly compared to 2023.
Regarding the 2024-2028 period target, PJICO determines safe and sustainable business operations, including maintaining an average growth in original insurance revenue of at least 3-5%, maintaining an average growth in pre-tax profit of 3%/year, and ensuring an average annual dividend payment of at least 8%/charter capital in cash.
At the same time, plan to seek and expand business scale in key, high-growth areas such as Hanoi, Ho Chi Minh City and some other provinces and cities to take advantage of market expansion opportunities.
The company also plans to distribute after-tax profits in 2023. It plans to pay a 12% dividend, equivalent to VND 133 billion.
PJCO also plans to submit to the shareholders' meeting for approval of the new brand identity logo. The company's Board of Directors also submitted to the shareholders' meeting for dismissal from the positions of members of the Board of Directors for the 2019-2024 term, namely Mr. Pham Thanh Hai, Ms. Nguyen Thi Huong Giang, Mr. Lee Jae Hoon, Ms. Truong Dieu Linh, Mr. Nguyen Manh Linh and independent member Ms. Trinh Thi Quynh Huong. The dismissal period is after the approval of the 2024 annual shareholders' meeting.
PJICO's annual general meeting of shareholders is scheduled to be held on April 10, 2024 at 8:00 a.m. at Mipec Palace Convention Center, 229 Tay Son, Dong Da, Hanoi .
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