HTL shares hit 7-year high as dividend hike from 20% to 65%

HTL shares of Truong Long Engineering and Automobile Joint Stock Company increased to the ceiling price of VND24,250, the highest price in the past 7 years after the board of directors consulted shareholders about increasing dividends from 20% to 65%.

Shares of Truong Long Engineering and Automobile Joint Stock Company (stock code HTL) increased by 6.83% to VND24,250 in the first trading session of the week (October 14) and closed with no sellers. Today's increase extended the streak of 3 consecutive increases to establish the highest price range since February 2017.

Not only did the market price fluctuate strongly, the cash flow into HTL shares also improved significantly. Specifically, in the session on October 14, the matched volume reached 21,500 units, 5 times higher than the previous session, accordingly, the value of successful transfers was 521 million VND. HTL's market capitalization reached 291 billion VND.

HTL stock price chart.

The increase in HTL shares coincided with the time when the company's board of directors announced a document seeking shareholders' opinions on changing the 2024 dividend payout ratio to 65%, meaning each share will receive VND 6,500. Previously, at the 2024 Annual General Meeting held in May 2024, the company approved a plan to pay dividends this year at a rate not exceeding 20%.

This will be the year HTL has the highest dividend payment since listing, if the proposal to increase the rate is approved.

Truong Long Engineering and Automobile Joint Stock Company is a company that has always paid cash dividends regularly over the years. In March and July 2024, the company paid dividends for 2023, with a total rate of up to 50%.

In addition to consulting shareholders on the dividend payment plan, the Board of Directors approved the adjustment of the investment plan for phase 3 at the Vinh Long branch and the renovation of facilities at the Ho Chi Minh City headquarters.

In addition, the Board of Directors also submitted to shareholders a plan to increase charter capital to serve projects in 2025 and approved the resignation of Board of Supervisors member Ms. Le Thi Ngoc Hanh.

In the first half of the year, Truong Long Engineering and Automobile Joint Stock Company recorded net revenue of VND206 billion, down 8% compared to the same period last year. Gross profit during this period was about VND27.4 billion, gross profit margin reached 13.3%.

After deducting expenses, the company reported pre-tax profit of VND16.6 billion and after-tax profit of VND13.3 billion, both more than double compared to the same period last year.

According to the management, sales of specialized equipment and specialized vehicles grew more than the sales results in the first 6 months of 2023. In addition, effective cash flow management and advantages from exchange rates also contributed significantly to the improvement in profits.

This year, Truong Long Engineering and Automobile Joint Stock Company plans to have net revenue of VND392.7 billion, down 40% compared to last year. Profit after tax will decrease by 87% compared to 2023, to VND5 billion.

After half a year, the company has completed 52.5% of the revenue plan and exceeded 163% of the profit target.

As of the end of the second quarter of 2024, the company had total assets of more than VND391 billion, a slight decrease compared to VND448 billion at the beginning of the year. Liabilities were more than VND179 billion, most of which were short-term debts. Owners' equity was more than VND212 billion, and undistributed profit after tax reached VND92 billion.

Source: https://baodautu.vn/co-phieu-htl-len-dinh-7-nam-khi-tang-co-tuc-tu-20-len-65-d227435.html