SIP organizes the 2024 Annual General Meeting of Shareholders on the afternoon of April 26 via online platform. Screenshot
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Demand for factory rent is huge
Mr. Tran Manh Hung – Chairman of the Board of Directors said that currently, SIP has leased a total of 110,000 square meters of factory area, reaching about 90% of the total factory built. In 2024, the company will build the remaining factory area and lease it as planned in the industrial parks (IPs) of Le Minh Xuan 3, Phuoc Dong, and Dong Nam.
Regarding planning, in Le Minh Xuan IP, SIP is planning a 13-hectare ready-built factory area. Dong Nam IP has basically completed the construction of ready-built factories and in Loc An – Binh Son IP, there is also a project to build factories or lease factories for rent. In the future, it will be extremely difficult to find land funds to build factories in IPs in Long Thanh or near HCMC. Therefore, SIP also aims to take advantage of its available capacity to create a factory fund, bringing long-term efficiency to the company.
“Currently, in IPs that are well located near HCMC area, the demand for factory rent is huge. Although it requires a large amount of capital, it can be affirmed that investing in factory construction is a business segment with high efficiency”, the Chairman affirmed.
Talking about the slow-developing residential projects, Mr. Hung said that the residential projects of IPs in HCMC are currently in the process of being removed by the city and SIP is no exception. The company is closely monitoring to promote residential projects into the construction process. Meanwhile, the residential area in Phuoc Dong IP is developing normally according to the general development progress of the IP.
Mr. Tran Manh Hung – Chairman of the Board of Directors at the meeting.
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Continuing to invest in developing more rooftop solar power
According to Mr. Hung, legal issues related to rooftop solar power projects are still unclear. However, in the spirit of cooperation with investors in the IPs, SIP has proactively invested a certain amount in solar power on the roofs of the company’s and investors’ factories. Up to now, the efficiency of these projects has also been quite good, reaching the expected plan.
“Although investing in solar power requires a large amount of capital, the investment in the past time has brought good results, so the company will continue to develop more rooftop solar power, contributing to the development of renewable energy, towards the company’s IPs becoming green IPs.”, Mr. Hung informed.
Mr. Hung added about the land fund, according to the company’s plan, there are still about 1,000 hectares, some of which are being cleared for compensation. The land lease progress must be in accordance with investors. In previous years, the annual land lease area was large, sometimes up to hundreds of hectares.
However, after the disease outbreak, the situation of attracting investment became more difficult. In 2024, the situation is showing signs of positive change and some investors have been granted licenses, the results will be reflected in 2024.
The plan goes backwards, 2024 dividend at a minimum rate of 10%
The Meeting approved the 2024 plan with consolidated revenue of nearly VND 5,388 billion and after-tax profit of nearly VND 793 billion, down 30% and 21% respectively compared to the implementation in 2023. The plan to lease 47ha of IP land and 4.3ha of factory area in 2024, with the majority located in Phuoc Dong IP.
The 2023 dividend at a rate of 31%, in which, in cash at a rate of 16% (10% has been provisionally paid, 6% has not been distributed) and stock at a rate of 15%. The remaining provisional payment is expected by the Board of Directors to be made in the second and third quarters of 2024. The dividend for 2024 will be at a minimum rate of 10%.
The Meeting also approved the issuance of 1.4 million ESOP shares (0.8%) at a price of VND 0, expected to be implemented in the second and third quarters of 2024.
Mr. Lu Thanh Nha – General Director of SIP at the meeting
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Profit in the first quarter increased by 43%, advantages in Loc An – Binh Son IP
At the meeting, the General Director of SIP reported on the consolidated business results in the first quarter of 2024 with expected revenue of VND 1,826 billion, up 30% over the same period; after-tax profit was VND 257 billion, up 43%.
Regarding Loc An – Binh Son IP, Mr. Nguyen Thanh Tung – Member of the Board of Directors said that despite many difficulties, Loc An – Binh Son IP still negotiated to lease the warehouse with an investor and has signed a contract in 2024 with an area of 16.3 hectares. In addition, the company is negotiating with some partners from Korea and Japan to find customers for the IP.
The factory business has many favorable trends, of which phase 1 (9.8 ha) has 8 workshops and 6 workshops have been signed for contracts, while 2 workshops are in the final negotiation phase to prepare for contract signing. In parallel, the company is also applying for a license to build an adjacent factory area with a scale of 9.4 hectares, which is a ready-built factory to serve investors.
Located in Dong Nai, Loc An – Binh Son IP is near Long Thanh International Airport; therefore, the company will focus on investors with high technical content, low labor intensity and environmentally friendly. This is also the trend of IPs in the coming time.
