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TDM Water’s annual general meeting in 2024 is expected to take place on March 28 at the company’s headquarters at 11B Ngo Van Tri Street, Phu Loi Ward, Thu Dau Mot City, Binh Duong Province, according to the finalized list on March 12, 2024.
Despite having only 25 employees, TDM Water earns hundreds of billion VND per year.
According to the AGM agenda, TDM’s management board evaluated the business performance in 2023 as relatively achieving the set targets, supported by favorable factors such as stable water output and prices, good incomes, despite a decrease in water consumption, an increase in raw material prices, and bank loan interest rates.
Total revenue in 2023 reached VND 657 billion, a 30% increase compared to the previous year, and achieved 102% of the annual plan. Net profit exceeded VND 283 billion, a 29% increase, and achieved 95% of the profit target (VND 298 billion). Remarkably, from 2018 to the present, TDM has consistently earned hundreds of billion VND in profit per year, even with only 25 employees.
Profit target for 2024 is less than VND 200 billion.
| As of the end of 2023, TDM owns 72.2 million shares of BWE, equivalent to 37.42% of the capital and is also the largest shareholder there. According to TDM’s financial report, the original investment amount in Biwase is VND 1,061 billion (accounting for 40% of total assets), however, the fair value is up to VND 2,974 billion. |
In 2024, TDM aims to achieve a total revenue decrease of 21% compared to the same period last year, reaching VND 520 billion. The forecast financial revenue will decrease by 82% due to the 2023 dividend of Biwase being paid in shares and no longer recording revenue of nearly VND 60 billion from the transfer of materials to Biwelco.
*Biwase plans to issue “paper dividends” for the first time since listing
Net profit in 2024 is expected to decrease by 32% to VND 193 billion, and will be the lowest profit in the past 4 years (from 2021) if the set plan is fulfilled.
Recently, the company announced its business results in January 2024, with total revenue reaching VND 29 billion and net profit exceeding VND 8.3 billion, an increase of 5% and 4% compared to the same period; achieving 5% of the revenue target and 4% of the annual profit target.
The minimum dividend rate in 2024 is 14%.
Regarding the profit distribution plan, on May 15, TDM will complete the payment of VND 140 billion in dividends for 2023 with a rate of 14% (VND 1,400 per share), according to the finalized list on December 29, 2023. In 2024, the minimum dividend rate is 14%.
On February 28, TDM Water concluded the issuance of 10 million shares to existing shareholders at a ratio of 10:1 (owning 10 shares to buy 1 share). With a offering price of VND 30,000 per share, the net proceeds from the offering amounted to nearly VND 300 billion. The company’s charter capital also increased from VND 1,000 billion to VND 1,100 billion.
According to the plan to use the proceeds from the offering, the company will use VND 143 billion to acquire shares of Can Tho Water Supply and Wastewater Treatment Joint Stock Company; more than VND 54 billion to acquire shares of Ca Mau Water Supply Joint Stock Company. Previously, TDM did not own any shares of these two units. The remaining amount of about VND 103 billion will be used to repay the principal of loans to the Binh Duong Provincial Development Investment Fund and Shinhan Bank.
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Information about projects in 2024, TDM currently owns 2 water plants: Di An and Bau Bang. Regarding the Di An Water Plant, the company is constructing a DN1600 raw water pipeline. This item has completed the construction permit and is expected to complete the pipeline before April 30, 2024. As for the Bau Bang Water Plant, TDM is preparing legal documents to complete the loan documents of JICA and ADB to invest in the D1500 raw water pipeline. The total investment value of the pipeline is about VND 365 billion, expected to be implemented at the end of 2024. |
