Thien Long Group (stock code: TLG) plans to increase net revenue this year by approximately 10% compared to last year, to VND3,800 billion, the highest level ever for this enterprise.
According to the document submitted to the recently announced annual general meeting of shareholders, Thien Long Group Joint Stock Company set a target of net revenue this year of VND3,800 billion, up 9.77% compared to the previous year's results and down 5% compared to the previous year's plan. The management board expects after-tax profit to increase by 6.69% to VND380 billion, but this is not the highest level in its history of operations because the company recorded after-tax profit of VND400 billion in 2022.
The company's board of directors also presented to shareholders a plan to issue shares under the employee stock option program (ESOP) if consolidated net revenue reaches more than VND4,000 billion. According to the board of directors, the issuance aims to motivate employees to improve work efficiency, attract and retain talent to ensure sustainable development as well as link a part of employees' income to the interests of shareholders. According to the plan, the company will issue more than 78.59 million shares, or 1% of the total outstanding shares, at a price of VND10,000/share. The issued shares are restricted from transfer within 2 years.
Regarding the profit distribution plan, the board of directors plans to allocate 10% of after-tax profit to the welfare reward fund. The dividend rate for this year is expected to be 35% of par value, or VND3,500.
In 2023, the company will also pay a dividend of 35% of par value, of which 25% will be in cash and 10% in shares. The total amount of money set aside for dividend payment is VND 273 billion. The company has currently paid an interim cash dividend of 15%.
Sharing about last year's business results, Thien Long's board of directors said it was a year full of difficulties and challenges, especially for domestic business activities due to the trend of cutting consumer spending. As a result, consolidated net revenue only completed 87% of the plan (equivalent to VND 3,462 billion) and profit completed 90% of the plan (equivalent to VND 359 billion).
The company assessed that the stationery market witnessed the penetration and competition from many foreign competitors. The highlight of the domestic distribution system last year was the strong development of e-commerce. For the export channel, the company continued to promote the introduction of goods to international markets and recorded a revenue growth of 35% over the same period. The main growth drivers came from traditional markets in the Southeast Asian region such as Malaysia (up 75%), Myanmar (up 71%), Thailand (up 55%).
On the stock exchange, TLG shares are currently trading at VND49,500, up 1% from the previous session. The company's market capitalization is VND3,890 billion.
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