The stock with the highest market price on the Ho Chi Minh City Stock Exchange is making waves.

VCF - the stock of Vinacafé Bien Hoa Joint Stock Company with the highest market price on the Ho Chi Minh City Stock Exchange - has been on a two-session ceiling increase streak after the board of directors planned to pay a cash dividend at a rate of 250%.

Shares of Vinacafé Bien Hoa Joint Stock Company (stock code: VCF) closed the trading session on March 26 at VND217,500, up VND14,200, or 7% compared to the reference. This is the second consecutive ceiling price session, bringing the stock price to a one-year peak to consolidate its leading position in terms of market price on the Ho Chi Minh City Stock Exchange. VCF's market price is currently far above the VND147,900 level of the next stock, FRT.

Before this increase, VCF shares had a relatively gloomy trading status. Last week, this stock had 4 sessions without any successful transactions and the market price remained at 190,000 VND.

The new uptrend was triggered right after the company's Board of Directors announced the annual shareholders' meeting report, which included the distribution of after-tax profits. Specifically, the company said that its undistributed after-tax profits are VND1,603 billion. The company plans not to allocate the welfare fund but will pay dividends in 2023 at a rate of 250% (ie each share receives VND25,000). The payment period is within 6 months from the date of approval by the shareholders' meeting. With more than 26.5 million listed shares, it is estimated that the company will spend VND664 billion to pay dividends.

VCF stock price and liquidity chart within one year.

Despite strong fluctuations in market price, VCF stock liquidity has not improved much. The two most recent trading sessions on March 25 and March 26 recorded a turnover of 3,900 shares and 900 shares, respectively. This stems from the fact that 98.79% of the company's capital is owned by Masan Beverage Company Limited - a member of Masan Group (stock code: MSN). Currently, the volume belonging to small shareholders is only about 320,000 shares.

The 14.4% increase in price after two sessions helped Vinacafé Bien Hoa's market capitalization increase from VND5,050 billion to VND5,780 billion. However, this figure is still relatively low compared to the early 2022 period when the company's market capitalization at that time reached VND7,176 billion.

This year, Vinacafé Bien Hoa's board of directors assessed that the world and domestic economy this year still has many difficulties, plus the price of Robusta coffee beans continues to increase abnormally, so the business targets are set quite cautiously. Specifically, the net revenue and after-tax profit plans are low at VND2,500 billion and VND470 billion, respectively, an increase of VND147 billion and VND20 billion compared to last year. In a more optimistic plan, the company expects net revenue to reach VND2,800 billion and after-tax profit to reach VND500 billion.

Source