Long Hau Corporation (LHG) has just approved a cash dividend payout for 2023 with a ratio of 19%, meaning that shareholders will receive VND 1,900 per share. With over 50 million shares in circulation, Long Hau is expected to pay out a total of over VND 95 billion for this dividend. The record date has not yet been announced, but the payment is expected to be made in August 2024.
Looking back at its history, this real estate company has consistently paid out cash dividends to its shareholders since 2010. In the last five years, Long Hau has maintained a cash dividend payout ratio of 19%, second only to the record 25% dividend in 2010.
On the market, LHG shares closed at VND 41,500 per share (July 9 morning session), approaching their all-time high set in 2021. Since the beginning of 2024, LHG’s market price has increased by approximately 42%.
Established in 2006, Long Hau focuses on industrial real estate and build-to-suit factory rentals. LHG owns the Long Hau Industrial Park (Long An), which spans 500 hectares and boasts a favorable location near major road, highway, and sea port connections. The company is currently developing the Long Hau 3 Industrial Park Phase 2 and the An Dinh Industrial Park, with a total planned area of approximately 290 hectares.
Additionally, LHG owns nearly 150,000 square meters of ready-built factories for lease in Long An and a high-tech park in Danang. The company plans to expand its build-to-suit factory rentals in these areas in the near future.
In a recent analysis report, VCBS Securities highly regarded LHG’s potential, particularly with the Long Hau 3.1 Industrial Park, which still has over 44 hectares of land available for lease. Of this, approximately 28 hectares are immediately leaseable, a valuable proposition given the limited supply and high occupancy rates of existing industrial parks in Southern Vietnam.
VCBS anticipates that LHG can lease out approximately 3 hectares of land annually in the coming years. With the remaining 44 hectares, the Long Hau 3.1 Industrial Park is expected to generate around VND 2,640 billion in land lease revenue for LHG, based on an average lease price of USD 250 per square meter per lease cycle.
Furthermore, the Long Hau 3.2 Industrial Park (90 hectares), the An Dinh Industrial Park (200 hectares), and the Long Hau – Tan Tap Industrial Park (150 hectares) will serve as long-term growth drivers for LHG. VCBS expects the An Dinh Industrial Park to be the first of LHG’s new projects to receive approval and commence development by the end of 2024. For the other two industrial parks, LHG is preparing the necessary procedures for the 1/2000 partition planning, and they are anticipated to contribute to LHG’s financial performance starting in late 2025.
For the year 2024, Long Hau has set a business plan with a total revenue target of VND 744 billion and an expected profit after tax of VND 131 billion. In the first quarter of 2024, Long Hau recorded a revenue of VND 76 billion, a 34% decrease compared to the same period last year, and a profit after tax of VND 31 billion, a 32% decrease year-on-year.
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