Sao Mai Group is about to pay a dividend of 30% in shares

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The Board of Directors of Sao Mai Group (HoSE:ASM) has just approved the plan to issue more than 77.6 million shares to pay dividends in 2019 and 2020 to shareholders, equivalent to a distribution ratio of 30%. Charter capital is expected to increase from 2,588 billion VND to 3,365 billion VND.

The source of payment is taken from undistributed after-tax profits on the audited financial statements as of December 31, 2020. After obtaining the written approval of the Securities Commission, the company will proceed to announce the closing date of the list of shareholders.

Last year, the company recorded a 12% decrease in net revenue to VND 12,525 billion due to a decrease in sales of exported fish and fish feed, resulting in a 31% decrease in net profit to VND 572 billion. In 2019, profit after tax was VND 823 billion. With this business result, shareholders approved the dividend payment in 2019 and 2020 at a total rate of 30%, equivalent to a value of nearly VND 777 billion. The form of payment is selected by the Board of Directors to suit the production and business situation at the time of payment, which can be in cash, in shares or both to bring benefits to shareholders.

As of December 31, 2020, Sao Mai has VND 1,467.7 billion of undistributed profit after tax; 45.1 billion dong of share capital surplus; 104.1 billion investment and development funds and 8.3 billion other equity funds.

In 2021, the group sets a business plan with 13,000 billion dong of net revenue and 700 billion dong of profit after tax, increasing by more than 3% and 22% respectively compared to the previous year. This year’s dividend payment is expected to be 10-20%, authorizing the Board of Directors to decide the time to advance the dividend depending on financial conditions.

At this year’s Annual General Meeting of Shareholders, shareholders also approved the plan to offer shares to existing shareholders at a ratio of 2:1 (shareholders who own 2 shares can buy 1 new share). The total issuance volume is 129.4 million shares. Expected issue price is 10,000 VND/share, equivalent to 1,294 billion VND of mobilized capital. Expected release time in 2021 or the first quarter of 2022.

In the first quarter, revenue was at VND 2,781.7 billion, down 12.6%; profit after tax was flat compared to the same period last year, reaching more than 150 billion dong. After the first quarter of the year, the business completed 21% of revenue and profit targets.

On the market, at the end of July 21, ASM shares were priced at 12,350 VND/share, down about 27% compared to the beginning of the year.

Source: Tradingview

Source: – Translated by