With 19.25 million shares in circulation, TNC is estimated to spend 23.1 billion VND on this dividend payout. Notably, this is the company’s lowest dividend payout since 2019.
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TNC’s dividend payout ratio in recent years
Source: VietstockFinance
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TNC’s lower dividend compared to previous years comes as its 2023 post-tax profit decreased by nearly 37% year-on-year to 33 billion VND, despite a 33% growth in revenue to nearly 130 billion VND.
The company attributed the challenges in 2023 to factors such as a significant drop in rubber prices during the first eight months, while input costs remained high. Additionally, the continuous decline in rubber prices led to a halt in rubber processing by customers. A disease called “yellow leaf rot” affected more than 30,000 banana trees in the bud-opening stage, resulting in yield losses. Unfavorable weather conditions, such as continuous rain in the third quarter, also impacted latex production. Furthermore, profits from Baria Serece Port decreased by half.
For 2024, TNC aims for a 27% growth in revenue compared to its 2024 performance but expects post-tax profit to remain flat at 33 billion VND. TNC cited a sharp decline in banana prices in early 2024 due to lower import demand from China. Additionally, the weather in 2024 is forecasted to be harsh, potentially affecting agricultural production. Moreover, dividends received from Baria-Serece Port are expected to decrease by 40-60% due to the port’s investments in upgrading its bridge, purchasing shore cranes, and installing automatic conveyor systems.
Thượng Ngọc
Markets on 06/02: Oil prices rise, gold, copper, iron ore, coffee all decline.
The end of the trading session on 05/02 saw heightened concerns in the Middle East, leading to an increase in oil prices. Meanwhile, the strengthening of the USD caused gold and copper to decline, while Japanese rubber reached its highest level in 3 years.
Market on 8/2: Oil prices rise, dong hits 3-week low, cocoa at all-time high
The trading session on 07/02 ended with an increase in oil prices due to the decrease in US fuel inventories. Meanwhile, gold remained stable, and the dollar hit its lowest point in 3 weeks. Additionally, cocoa prices reached their highest level in history ahead of Valentine’s Day.
Rapid Increase in Price of Green Bananas for Lunar New Year
During the Lunar New Year holiday season, the price of bananas skyrockets, sometimes reaching over 300,000 VND per bunch. Despite the high cost, there is still a high demand, and many people are willing to purchase them.
Intense Red Sea Tension: Rubber export forecast remains challenging
Despite the ongoing tension in the South China Sea, experts in the trading field continue to forecast challenges in the international rubber export market. The demand from China remains the key factor impacting Vietnam’s rubber exports. Additionally, the prolonged tension in the South China Sea will also affect Vietnam’s rubber exports.
