With over 23.5 million shares outstanding, Rang Dong Light Bulb Joint Stock Company (RAL) plans to distribute nearly VND 59 billion in dividends. The payment date is set for August 28, less than two weeks after the record date.
Since its listing on the Ho Chi Minh Stock Exchange (HOSE) in 2006, RAL has consistently paid dividends to its shareholders, ranging from one to two times per year. The company has maintained a dividend payout ratio of 50% in cash for seven consecutive years, from 2017 to 2023. In 2024, RAL’s shareholders approved a dividend plan with a payout ratio of 50%. The company is expected to distribute the remaining dividends for 2024 at a rate of 25% to fulfill its plan.
This attractive dividend policy is supported by stable financial performance. Since 2005, RAL’s revenue has consistently grown year over year, increasing from VND 441 billion to VND 8,316 billion in 2023, almost a 19-fold increase. In the last four years (2020-2023), net profits consecutively broke records, peaking at VND 584 billion in 2023.
| RAL’s Financial Performance from 2005 to 2023 |
In the first half of 2024, RAL recorded revenue of more than VND 4,950 billion and a net profit of nearly VND 332 billion, representing increases of 35% and 13%, respectively, compared to the same period last year. The company achieved over 70% of its revenue target and 90% of its profit goal for the year. In the second quarter alone, net profit surged by over 24% to exceed VND 137 billion.
The positive results are partly attributed to the successful implementation of digital transformation initiatives. According to RAL’s leadership, the digital transformation process has enabled the company to establish a growth trajectory of 15-20% annually from 2020 to 2023.
As of June 30, 2024, RAL’s total assets exceeded VND 8,400 billion, an increase of 8% from the beginning of the year. The largest component was accounts receivable, totaling over VND 5,200 billion, a 4% increase. The company also held over VND 1,100 billion in bank deposits and nearly VND 2 billion in cash on hand.
In line with its financial performance, RAL’s stock has witnessed a strong performance in the market, making it one of the most expensive stocks. Since the beginning of the year, RAL’s share price has surged by nearly 38% to VND 146,000 per share (as of August 9), with an average daily trading volume of over 27,000 shares.
| RAL’s Stock Price Performance in 2024 |
The relatively low liquidity can be attributed to RAL’s concentrated shareholder structure. Currently, the Company’s Labor Union is the largest shareholder, holding 40.52% of the capital. Following closely is the family of Mr. Le Dinh Hung, a member of the Supervisory Board, collectively holding 20.36%, of which Mr. Hung personally owns 9.26%.
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In addition to RAL, Mr. Le Dinh Hung is also the Chairman of the Board of Directors of Gia Loc Phat Joint Stock Company.
