Mien Tay bus station achieves record revenue

Ho Chi Minh City bans sleeper buses from entering the inner city, helping the Western Bus Station's revenue increase to 140 billion in 2023, a record level since the information was announced.

The recent financial report of Western Bus Station Joint Stock Company (WCS) shows that this enterprise achieved revenue of nearly 35 billion VND in the last quarter of 2023, an increase of 21.5% over the same period in 2022. Similar to previous quarters, revenue improved thanks to the ban on sleeper buses entering the inner city area since the beginning of the year, causing transport businesses to bring vehicles into the station to operate. The company applies the collection of service fees for vehicles entering and leaving the station according to the bus schedule approved by the route management agency.

In the fourth quarter of 2023, WCS also recorded a nearly 29% increase in financial revenue to VND4.7 billion thanks to long-term deposits with high interest rates mobilized at the beginning of the year. The company currently has more than VND200 billion in savings at banks.

After deducting expenses, this quarter, Mien Tay Bus Station achieved nearly 15.3 billion VND in after-tax profit, up 13% over the same period in 2022. The company has continued its positive growth streak in both revenue and profit for more than two consecutive years. After the pandemic, it took this business about a year to recover and start to reach new peaks.

For the whole year of 2023, WCS recorded more than 140 billion VND in revenue, an increase of 49% and a record since the information was disclosed in 2008. Profit after tax increased by nearly 75% to about 66.5 billion VND, the highest level in the past four years. The company exceeded its revenue target by 17% but its profit was nearly half higher than the full-year plan.

Previously, the management board of the Western Bus Station expected that if the business results were favorable, the average income of workers here would increase to more than 21 million VND per month and they would receive a yearly bonus with a maximum of no more than three months' salary. In addition, when profits exceeded the plan, the company would allocate an additional 20% of the surplus profit to reward workers, with a maximum of no more than three months' salary.

In 2023, WCS wants to pay dividends at a rate of 20% or more. This company has paid dividends at 20% for four consecutive years, from 2020 to now. Previously, Mien Tay Bus Station was known for its sky-high annual cash dividend rate, 400% in 2018 alone, and 516% in 2019.

WCS shares are among the most expensive on the market. The closing price on January 23 was VND186,000 per unit, down about 2% from the peak at the end of June 2023. During the market correction in October, the price of this stock dropped slightly, still trading around VND170,000, with low liquidity.

Siddhartha

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