Song Hinh Hydroelectric Plant
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On January 31, 2024, Vinh Son – Song Hinh Hydropower completed the first interim dividend payment for 2023 with a rate of 10% (1,000 VND/share), equivalent to more than 236 billion VND.
According to the plan, the remaining portion of 2023 (20% rate, equivalent to 2,000 VND/share) will be paid on March 22, 2024. However, due to the inability to balance the payment cash flow, the Board of Directors of VSH decided to postpone the payment of the second interim dividend for 2023 to October 3, 2024, which is 6 months later than planned.
The initial dividend plan for 2023 of VSH approved by the annual general meeting of shareholders was 20% in cash. On December 19, 2023, the result from the written shareholder’s opinion collection round of the company approved the adjustment of the dividend rate for 2023 to 30%.
It is worth mentioning that VSH increased the dividend rate despite the lackluster business performance in 2023. Total revenue reached 2,578 billion VND and net profit was 994 billion VND, decreasing 17% and 21% respectively compared to 2022, mainly due to unfavorable hydrological conditions. However, the company still exceeded the revenue target by 5% and the profit target by 16% compared to the set targets.
As of December 31, 2023, VSH’s total assets reached 8,071 billion VND, in which accounts receivable from customers exceeded 1,172 billion VND, increasing by 47% compared to the beginning of the year.
The company stated that the financial situation of Vietnam Electricity Group (EVN) is facing difficulties, so the collection of electricity payment is currently delayed compared to the plan. By the end of 2023, VSH still has not been paid the outstanding debts from 2022, amounting to more than 221 billion VND, and the debts from 2023 are about 950 billion VND.
“Recovering the electricity payment debts is important for the company to ensure sufficient funds to pay dividends and repay maturing debts in 2024,” said a representative of VSH.
In 2024, VSH is expected to achieve revenue of 1,966 billion VND and net profit of over 505 billion VND, decreasing by 24% and 49% respectively compared to the actual results in 2023. Among them, the estimated electricity production output is over 2.1 billion kWh, a decrease of 4%.
The above business plan will be submitted to the annual general meeting of shareholders, which is scheduled to take place on April 4 at Măng Đen town, Đăklong, Konplong, Kon Tum province, according to the final list as of April 2, 2024.
Vĩnh Sơn – Song Hinh Hydropower plans to reduce nearly half of its profits.
In the stock market, VSH’s stock price has increased by nearly 140% compared to the bottom in mid-November 2021, currently trading at the historical peak of 50,000 VND/share. However, the liquidity since the beginning of 2024 has not reached 20,000 shares/day, mainly due to concentrated shareholder structure.
At the end of 2023, REE Energy Co., Ltd. – a subsidiary of Refrigeration Electrical Engineering Corporation (HOSE: REE) – owns 52.58% of VSH’s capital; followed by Power Generation Corporation 3 – Joint Stock Company (HOSE: PGV) with 30.55% and Samarang Ucits Fund with 9.88%.
| VSH stock price has increased over 10% since the beginning of 2024 |
