Mr. Chaowalit Treejak - member of the Board of Directors and General Director of Binh Minh Plastics - received salary and remuneration in 2024 of nearly 6.2 billion VND. This level is nearly 4 times higher than the average income of leaders of enterprises on the stock exchange in 2023, according to data from Fiingroup.
Nawaplastic Industries - a member of SCG Group from Thailand holds 54.99% of BMP shares - Photo: BMP
Binh Minh Plastics Joint Stock Company (BMP) has just announced its consolidated financial report for the fourth quarter of 2024 with results that were somewhat "weaker" than the same period last year.
Specifically, revenue in the period only reached 1,070 billion VND, down 27%. However, thanks to optimizing cost of goods sold, the gross profit of this plastic company reached nearly 452 billion VND, down only 23%.
In the cost structure, most of them tend to be reduced, from interest to sales and business management costs. As a result, BMP's after-tax profit only decreased by 10% compared to the same period, reaching 230 billion VND.
Last year, BMP's revenue reached VND4,678 billion, down 10% compared to the previous year. Profit after tax reached VND990 billion, down 5%.
Although after-tax profit has decreased, it cannot be denied that BMP is still a company with a "huge" gross profit margin in the plastics industry at 43% for the whole year of 2024. This number means that for every 100 VND of revenue, the business brings in 43 VND of profit.
The downward adjustment of input material prices to record lows has supported BMP's gross profit margin from plastic product sales to remain high.
Looking back at the data, since being acquired by Siam Cement Group (SCG) - a Thai corporation specializing in the construction materials business since 2018, BMP has continuously brought in "sweet fruit" by achieving huge profit margins.
BMP's gross profit margin is "sky-high" as it benefits greatly from the sharp drop in input material prices - Data: DSC, TTO
With big profits, BMP also pays more "generous" salaries to its leaders.
The fourth quarter financial report shows that BMP bosses' salaries, bonuses and remuneration in 2024 all increased compared to the previous year.
Of which, Mr. Chaowalit Treejak - member of the board of directors and general director - received nearly 6.2 billion VND - an increase of 23%, equivalent to nearly 520 million VND per month.
This is also a high level compared to the average income of business leaders on the stock exchange. According to Fiingroup's report, the average income of the chairman of the board of directors of listed enterprises in 2023 is 1.7 billion VND/person.
The second highest earner at BMP is Mr. Sakchai Patiparnpreechavud - Chairman of the Board of Directors, with nearly 3.2 billion VND, an increase of 16%.
Meanwhile, the remaining board members received the lowest income from 387 million VND to 1.9 billion VND.
Data shows that in recent years, the income of BMP leaders has continuously improved amid favorable business conditions.
In 2022, Mr. Sakchai Patiparnpreechavud received more than 1.6 billion VND, and Mr. Chaowalit Treejak received more than 3.6 billion VND. In 2023, the income of both of them increased to 2.7 billion VND and more than 5 billion VND, respectively.
Thai shareholder holds nearly 55% of Binh Minh Plastics shares
BMP is a long-standing brand in the construction plastics industry, mainly operating in the Southern region and currently accounts for more than 50% of the plastic pipe market share here, according to a report by Mirae Asset Securities.
Currently, BMP's largest shareholder is The Nawaplastic Industries (Saraburi) Co., Ltd, which owns nearly 55% of the shares. This is a subsidiary of SCG (Thailand).
From the end of 2022 to now, BMP has benefited greatly from the sharp decrease in input material prices of PVC due to the decline in consumption demand in China. This event has helped BMP's after-tax profit accelerate from the fourth quarter of 2022 and peaked in the second quarter of 2023 when the economic slowdown has significantly reduced the company's consumption output.
Another notable observation is that in recent years, BMP has used most of its profits to pay cash dividends.
As in 2023, Binh Minh Plastics will pay cash dividends at a rate of 126%, equivalent to 12,600 VND per share. This means that the "big guy" in the plastic industry used 99% of the after-tax profit achieved last year to pay cash dividends.
Binh Minh Plastics wants tax authorities to conclude "who is right and who is wrong"Source: https://tuoitre.vn/sep-nguoi-thai-nhan-luong-khung-o-cong-ty-nhua-lon-nhat-mien-nam-20250126071551774.htm
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