According to the resolution of the 2024 annual general meeting of shareholders, Green Port Corporation (code VGR) has approved its business plan for 2024, with a target revenue of 774 billion VND and pre-tax profit of 240 billion VND, representing a 14% and 22% decrease respectively compared to the 2023 performance. The minimum dividend payout ratio is 20% of charter capital.
Regarding the profit distribution plan for 2023, VGR plans to allocate nearly 443 billion VND to pay dividends with a cash dividend ratio of 70%. Previously, VGR had already paid a 10% interim dividend on June 14, 2023. As a result, VGR’s shareholders will receive dividends with a 60% ratio.
This is the highest dividend payout ratio of VGR since its listing in 2018. It’s a surprising move as the company initially proposed a 40% dividend payout plan equivalent to 253 billion VND in the shareholders’ meeting documents.
After the news of the company’s generous dividend payout, VGR’s stock price has been continuously increasing, even reaching the daily price limit. Since the beginning of 2024, the stock price has risen by nearly 43%, reaching a new peak of 53,500 VND per share.
The stockholders of VGR are the biggest beneficiaries of the soaring stock price and the generous dividend payout. Vietnam Container Shipping Corporation (Viconship – code VSC), which holds a 74.35% stake in VGR, will receive over 329 billion VND in dividends. This amount is even more than double Viconship’s net profit in the whole year of 2023.
For the past year, Viconship recorded approximately 2,181 billion VND in revenue, an increase of nearly 9% compared to the previous year. However, the high interest expense has significantly eroded the company’s profit. The net profit in 2023 was nearly 202 billion VND, a 49% decrease compared to the same period in 2022.
In another development, Viconship has just approved the implementation of procedures to apply for an extension of the certificate of registration for public offering of shares from the State Securities Commission for an additional 30 days starting from March 28, 2024.
Prior to that, Viconship had finalized the list of shareholders on January 18, 2024, to offer 133.3 million shares to shareholders at a 1:1 ratio, with each shareholder owning 1 share being entitled to purchase 1 additional share at the price of 10,000 VND per share. The registration and payment period is from January 26 to March 18, 2024.
The expected amount of funds raised, more than 1,333 billion VND, will be used by Viconship to acquire up to 44% of the charter capital of Nam Hai Dinh Vu Port Company Limited from existing capital-contributing members (1,320 billion VND); and the remaining 13.96 billion VND will be added to the working capital.
Specifically, Viconship will allocate a maximum of 1,320 billion VND to acquire up to 44% of the capital in Nam Hai Dinh Vu Port Company Limited, with the average purchase price being 75,000 VND per share from Doan Huy Trading and Investment Company Limited, and Huy Hoang Import-Export Metal Trading Company Limited.
If the transfer is successful, Viconship will increase its ownership from 35% to a maximum of 79% of the charter capital in Nam Hai Dinh Vu Port Company Limited. The expected transfer period is from the fourth quarter of 2023 to 2024.
According to BSC, if this transaction is successful, Viconship will become the largest port company in the Hai Phong area in 2023, with a total capacity of approximately 2.6 million TEUs, a 36% increase compared to the previous period, and capturing 30% market share in this area.
In the market, Viconship’s VSC shares have also increased by 11% since the beginning of the year, reaching 21,800 VND per share. Its market capitalization is more than 5,800 billion VND, still lower by about 27% compared to the record level achieved in June 2022.
