Savimex plans to issue bonus stocks with a 15% ratio, while stock price hits the ceiling

Savimex - Joint Stock Company for Economic Cooperation and Import-Export (SAV, HOSE: SAV) has released its Annual General Meeting documents for 2024, setting a target of pre-tax profit of VND 35 billion (compared to a loss of over VND 10 billion in 2023) and an expected issuance of bonus shares at a ratio of 15%.

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Savimex has just sent an invitation letter to shareholders to attend the annual general meeting 2024, scheduled to be held on April 5, 2024, at 162 HT 17 Street, Hiep Thanh Ward, District 12, Ho Chi Minh City.

Accordingly, Savimex presents shareholders with its business plan for 2024, with a net revenue of 868 billion dong, a 10% increase compared to 2023, and a pre-tax profit of 35 billion dong. The company plans to pay dividends in 2024 with a total rate of 15%; of which 3% in cash and 12% in shares.

At the same time, SAV also proposes to shareholders to consider issuing over 3.2 million bonus shares, at a rate of 15% (equivalent to 15 bonus shares per 100 shares owned by shareholders) to increase the share capital from owner’s equity. The capital will be sourced from the “Other funds in owner’s equity” item as of December 31, 2023, in the Q4/2023 financial statements of SAV, amounting to nearly 35 billion dong.

The implementation is expected to begin in May or June 2024, at a specific time in accordance with securities regulations. If the issuance is successful, SAV’s charter capital will increase to nearly 252 billion dong (equivalent to nearly 25.2 million shares).

Source: Q4/2023 financial statements of SAV

Notably, immediately after announcing the documents and proposals, the share price of SAV reached the ceiling price of 15,900 dong/share in the session on March 15, increasing more than 8% compared to the beginning of the year, with an average liquidity of nearly 94 thousand shares/session.

SAV Stock Price Movement since the beginning of 2024

In 2023, Savimex’s business performance was not optimistic as its net revenue reached nearly 789 billion dong, a 20% decrease compared to the previous year; after-tax loss of over 10 billion dong (in 2022, it made a profit of nearly 55 billion dong), which is also the lowest level in 8 years for the Company (since 2016).

SAV’s After-tax Profit from 2015-2023

Thanh Tú

SOURCEvietstock
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