VRG sets ambitious 2023 dividend plan with a staggering five-year profit

On February 21, VRG’s Board of Directors approved the interim dividend payment for 2023 at a rate of 20% (2,000 VND for each share), to be paid in cash or transferred. The ex-dividend date is February 29, and the payment date is March 13. With nearly 26 million outstanding shares, VRG will need to allocate nearly 52 billion VND for this dividend payment.

In 2023, VRG plans to distribute dividends at a total rate of 38% (3,800 VND for each share), equivalent to over 98 billion VND. Notably, this figure was approved at the extraordinary shareholders’ meeting in 2024, which is higher than the initial plan approved at the annual shareholders’ meeting in 2023, which was 30%.

Regarding the business performance, in 2023, VRG achieved unprecedented results with a net revenue of 549 billion VND and a net profit of 195 billion VND. These numbers are respectively 4.7 times and 3.9 times higher than those of 2022.

The significant profit mostly came in the fourth quarter when VRG recorded 90% of the value from two contracts of leasing land associated with infrastructure at the Cong Hoa Industrial Zone with the one-time revenue recognition method.

The investment project for construction and operation of the infrastructure of Cong Hoa Industrial Zone, Chi Linh town, Hai Duong province was initially certified on April 9, 2008, and the fifth change was made on January 13, 2020, with a total investment capital of over 834 billion VND. The project implementation progress is divided into 2 phases, with phase 1 starting from the date of initial certification (2008) until 2019, and phase 2 from 2020-2021. A part of the project has been put into operation, and the technical infrastructure is still under construction. The total investment amount of the project approved by the Board of Directors in 2015 is about 1,081 billion VND, in which the expenses implemented by the investor is about 834 billion VND. Implementation status of Cong Hoa Industrial Zone investment project Source: VRG’s Q4/2023 Financial Report Image of a corner of Cong Hoa Industrial Zone, Chi Linh town, Hai Duong province

In the stock market, VRG’s share price has increased nearly 30% since the beginning of 2024, reaching 36,500 VND/share at the end of February 22. This is also the “golden age” for VRG.

Huy Khai