Binh Minh Plastics sets profit target to go down, dividend payment at least 50%

Binh Minh Plastics Joint Stock Company (BMP) sets a target of after-tax profit of VND 1,030 billion in 2024, a slight decrease compared to VND 1,041 billion last year, and plans to pay a minimum dividend of 50%.

According to documents submitted to the upcoming annual general meeting of shareholders, Binh Minh Plastics Joint Stock Company (stock code: BMP) sets a revenue target of VND5,540 billion this year, up 6.5% compared to 2023. The pre-tax profit and after-tax profit plans are VND1,290 billion and VND1,030 billion, respectively, both slightly down from VND1,307 billion and VND1,041 billion last year. The Company's Board of Directors expects this year's investment plan to be VND141 billion.

The Board of Directors of Binh Minh Plastics said that the Company's main goal this year is to continue to affirm its leading position in the domestic market, prioritize market development and flexibly apply policies to improve business efficiency. The Company also determines to improve competitiveness by diversifying products and expanding customers.

According to this report, the Company plans to pay a dividend of at least 50% of after-tax profit in 2024. In 2023, the Company paid a cash dividend equivalent to 99% of after-tax profit, or VND1,031 billion. Specifically, the Company has paid a first dividend advance of 65% and plans to pay a second dividend of 61%. Thus, the total dividend rate for 2023 is up to 126%, meaning that shareholders will receive VND12,600 per share. The Company's Board of Directors believes that "the dividend in 2023 is still very positive while other companies are still facing many difficulties".

On the stock exchange, BMP shares are trading at VND113,000, up about 6% from VND107,000 at the beginning of the year. The company's market capitalization is currently around VND9,250 billion.

In an analysis report published at the end of March, SSI Research set SSI's target price range for the next year at VND112,000, with little change from the current time. According to SSI Research, BMP is focusing on developing product quality to differentiate itself from competitors because the management believes that consumers are willing to choose quality products over low-priced products. In the first two months of this year, consumption was weak due to seasonality. The company expects PVC prices to remain stable this year and the current distribution network will still meet demand.

SSI estimates Binh Minh Plastics’ net revenue this year at VND5.2 trillion, up 1% year-on-year, while after-tax profit may fall 12% to VND915 billion. “In a period of low interest rates, we expect the high cash dividend yield to be attractive to investors in the short term,” the report said.

Last year, Binh Minh Plastics recorded net revenue of VND5,157 billion and net profit of VND1,041 billion. Dividend yield reached 11.3%, significantly improved compared to 9.5% last year. EPS reached VND12,717, and ROE reached 39.2%.

Source