Sonadezi Chau Duc plans to increase profit slightly

Sonadezi Chau Duc Joint Stock Company (code SZC - HoSE) announced documents for the 2024 Annual General Meeting of Shareholders, the meeting is scheduled to be held on April 5, 2024 in Ba Ria - Vung Tau.

In 2024, Sonadezi Chau Duc plans to have revenue of VND 881.09 billion, an increase of 5.4% over the same period, and expected profit after tax of VND 228.15 billion, an increase of 4.2% compared to the implementation in 2023. Of which, the total investment in basic construction is expected to be VND 449.46 billion.

The company said the two main segments expected to contribute the most revenue in 2024 are industrial land leasing of about VND625.7 billion and real estate business of about VND119.2 billion. In addition, Chau Duc golf course business is expected to record VND50.06 billion and other areas.

In 2023, Sonadezi Chau Duc planned a total investment cost of VND 385.71 billion, but only invested VND 234.2 billion, reaching 60.72% of the plan. Of which, the investment delay compared to the plan is related to the Industrial Park, Urban Area and BOT Road 768 project.

Returning to the upcoming General Meeting's reports, regarding 2023 profit distribution, Sonadezi Chau Duc presented shareholders with a dividend plan at a rate of 10% and in 2024, it is expected to continue to pay a 10% dividend.

Sonadezi Chau Duc wants to borrow a limit of 3,000 billion VND at VietinBank

In addition, recently, Sonadezi Chau Duc Company approved a plan to borrow capital and secure assets at Vietnam Joint Stock Commercial Bank for Industry and Trade - Branch 7 in Ho Chi Minh City.

Vietnam Joint Stock Commercial Bank for Industry and Trade - Branch 7 in Ho Chi Minh City will provide a total long-term loan limit of VND3,000 billion to Sonadezi Chau Duc Company and a new short-term loan limit of VND100 billion to supplement working capital. Of which, the new long-term loan limit is VND2,000 billion to continue implementing the investment project of Chau Duc Industrial Park.

In addition, the loan will be mortgaged/pledged with assets to Vietnam Joint Stock Commercial Bank for Industry and Trade - Branch 7.

It is known that as of December 31, 2023, Sonadezi Chau Duc Company has a total short-term and long-term debt of up to VND 2,667.8 billion, equal to 154% of equity. Of which, short-term debt is VND 624.2 billion and long-term debt is VND 2,043.6 billion.

In terms of long-term debt structure, mainly 1,328.3 billion VND from Vietnam Joint Stock Commercial Bank for Industry and Trade - Branch 7; 284.6 billion VND from Vietnam Joint Stock Commercial Bank for Investment and Development - Dong Nai Branch; 115 billion VND from Woori Bank Vietnam...

Most of the money raised is used to pay off debt.

Another noteworthy point is that on January 8, 2024, Sonadezi Chau Duc Company closed the list of shareholders exercising the right to buy additional shares offered for sale, at a ratio of 2:1, shareholders owning 2 shares are entitled to buy 1 new share at a price of VND 20,000/share.

In addition, from January 16, 2024 to February 20, 2024, investors will register to purchase and pay for additional shares offered for sale. However, Sonadezi Chau Duc Company suddenly extended the payment period from January 16 to March 15, 2024.

It is estimated that the Company will offer nearly 60 million shares to raise nearly VND1,200 billion. Of the amount raised, the Company plans to use VND800 billion to restructure the Company's loans to credit institutions and pay principal and interest on due bonds; and the remaining nearly VND400 billion will be used to supplement investment capital and build the Chau Duc Industrial Park project in Chau Duc district, Ba Ria - Vung Tau province.

It is known that in the Prospectus for the offering of shares, Sonadezi Chau Duc Company has 2 major shareholders including Industrial Park Development Corporation owning 46.84% of charter capital; Sonadezi Long Thanh Joint Stock Company owning 10.08% of charter capital; and the remaining 43.08% of charter capital belongs to small shareholders owning less than 5% of charter capital.

Another notable development is that Sonadezi Chau Duc Company has just approved increasing the investment capital of the Chau Duc Urban Area project from VND 1,237.43 billion to VND 9,804.4 billion, an increase of 6.92 times compared to the original plan, equivalent to an increase of VND 8,566.97 billion.

The reason for the project capital increase, the Company said that with the actual implementation situation, the Chau Duc Urban Area project has changed in scale, total investment capital, and implementation progress, so the Company must adjust the investment policy of the Chau Duc Urban Area project.

Source