With high profits, May Viet Tien (VGG) temporarily pays 15% cash dividend

May Viet Tien plans to pay at least one more cash dividend at a rate of 5%.

Viet Tien Garment Joint Stock Corporation (stock code VGG - UPCoM) has just announced the closing date for receiving 2024 cash dividends on December 6. The exercise rate is 15%, equivalent to shareholders owning 01 share will receive 1,500 VND in dividends. The expected payment date is December 24. With 44.1 million outstanding shares, it is estimated that Viet Tien Garment will have to spend more than 66 billion VND to pay dividends. Of which, Vietnam Textile and Garment Group (stock code VGT) is expected to receive more than 20 billion VND in dividends as it is the largest shareholder at Viet Tien Garment with an ownership rate of 30.4% of charter capital. According to the plan, this year Viet Tien Garment plans to pay 2024 cash dividends at a rate of 20%. Thus, to complete the plan, the company is expected to pay a minimum dividend of 5% in cash. In terms of business operations, in the third quarter of 2024, May Viet Tien recorded net revenue of VND 2,692 billion, an increase of 19% over the same period last year. Gross profit in the period increased by 42%, reaching VND 297 billion. After deducting expenses arising from business operations, May Viet Tien recorded a profit after tax in the third quarter of 2024 of VND 120.6 billion, 2.4 times higher than the same period in 2023.

Trading volume and stock price trend of May Viet Tien's VGG from the beginning of 2024 to present. (Source: TradingView)

In the first 9 months of the year, May Viet Tien recorded revenue of VND 7,623 billion and profit after tax of VND 261 billion, up 19% and 107% respectively over the same period last year. Thereby, the company has completed 91% of the revenue plan and 157% of the profit plan for the whole year. On the balance sheet, May Viet Tien's total assets as of the end of the third quarter of 2024 reached VND 5,283 billion, up 6.5% over the beginning of the year. Of which, cash and cash equivalents reached VND 637 billion, up 28%; short-term receivables reached VND 1,820 billion, down slightly compared to the beginning of the year; inventories reached VND 1,306 billion, up 13%. In terms of capital, May Viet Tien's payable debt as of September 30, 2024 reached VND 3,129 billion, up 6% over the beginning of the year. Of which, the majority is short-term payables to sellers, reaching VND1,775 billion, a slight increase compared to the beginning of the year. Source: https://www.dnse.com.vn/senses/tin-tuc/lai-dam-may-viet-tien-vgg-tam-ung-co-tuc-tien-mat-15-34019185