Foreign shareholder SCG Group (Thailand) will receive more than 567 billion VND when Binh Minh Plastics spends almost all of its profits to pay cash dividends.
In the upcoming annual meeting documents, Binh Minh Plastics Joint Stock Company (BMP) presented a plan to allocate 99% of its 2023 after-tax profit, about VND1,031 billion, to pay cash dividends at a rate of 126%. Thus, for each share owned, BMP shareholders will receive VND12,600.
In November 2023, the company made a 65% stock advance, equivalent to over VND532 billion. Therefore, if approved, BMP will continue to pay the second dividend at a rate of 61%, about VND499 billion.
Among the shareholders, Nawaplastic Industries - a member of SCG Group (Thailand), will receive the most, over VND567 billion. This group currently holds 55% of capital at BMP.
The 126% dividend plan was announced by Binh Minh Plastics after a year of record profits. Last year, the company earned nearly VND5,200 billion and had a post-tax profit of over VND1,040 billion - 1.5 times higher than the previous year. This is also the first time in 46 years of operation that the company has made a profit of over a thousand billion VND.
The 2023 dividend is also the highest the company has paid since its listing in 2006. Since the Thais became major shareholders in 2012, the company has maintained a regular dividend payment every year with the lowest rate of 26% (2021 - the peak of the pandemic). BMP prefers to use "cash and real rice". In 2012 and 2016 alone, the company combined additional bonus shares for shareholders.
It is estimated that the cash dividends that the group of "Golden Pagoda" shareholders received after 12 years of investing in BMP are about 1,991 billion. Previously, SCG Group spent more than 2,800 billion VND on 4 times of buying BMP shares. Thus, counting only cash dividends, the Thai group made a profit of 71%.
This year, the leading plastics company in the industry targets revenue of VND5,540 billion and after-tax profit of VND1,030 billion, a slight increase compared to last year. The board of directors also aims to spend at least 50% of profits on dividends.
On the stock market, BMP shares closed the weekend session with a dramatic increase, up to 120,300 VND per unit. This is the stock code with the fourth highest market price on the HoSE.
SCG Group has been present in Vietnam for more than a decade, starting with joint ventures with domestic enterprises in the fields of petrochemicals and construction materials. After that, the Thai giant expanded its scale through mergers and acquisitions (M&A) in the plastics and packaging industries. At the end of last year, the group spent nearly VND700 billion to acquire 70% of the capital of the leading offset printed carton packaging manufacturer Starprint Vietnam.
Siddhartha
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