Pho Apatit Vietnam Joint Stock Company (stock code PAT) – a company indirectly owned by Duc Giang Chemical Group (stock code DGC) through Duc Giang Lao Cai (stock code DGL) – has recently announced the documents for its 2024 annual general meeting (AGM) scheduled to take place on March 27. The documents contain important information regarding the company’s production and business plans, dividends, and personnel.
According to the documents, PAT plans to present its business plan for 2024 at the AGM, with the aim of achieving a total net revenue of nearly VND 1,678.5 billion. The estimated production volume of Phosphate rock is 18,000 tons, equivalent to a revenue of VND 1,674 billion. The target net profit after tax is expected to reach VND 230 billion, a decrease of nearly 20% compared to the performance in 2023.
It is worth noting that the net profit after tax in 2023 also decreased sharply by 70% compared to the previous year 2022. The company stated that 2023 was a difficult year for the Phosphate rock business, the main product of PAT. The selling price decreased rapidly (45%), and the demand also declined, forcing the company to reduce its production capacity. Along with the increase in input material prices, the company’s production and business results have declined significantly.
With the sharp decline in business performance, PAT plans to only distribute an additional 10% dividend for 2023, equivalent to a dividend rate of 100% for the whole of 2023 (previously provisionally paid 90%). This figure is much lower than the dividend rate of 140% approved at the 2023 annual general meeting. In 2024, PAT plans to distribute dividends with a rate of 70%.
According to the documents for the 2024 annual general meeting, shareholders will elect new members of the Board of Directors and Supervisory Board for the new term (2024-2029). However, there is no expected change in the leadership positions with Mr. Dao Huu Huyen continuing to hold the position of Chairman of the Board of Directors for the new term.
In another related development, the documents for the 2024 annual general meeting of Duc Giang Chemical Group include a proposal to study the merger of PAT into the company. However, the documents of PAT do not mention this issue.
On the market, PAT shares are currently trading at VND 101,700 per share, an increase of nearly 10% since the beginning of 2024. The corresponding market capitalization is over VND 2,500 billion.
