HDA – EXPAND INDUSTRIAL REAL ESTATE INVESTMENT PAY DIVIDIVIDEND UP TO 31%
Paying dividends of 31%, expanding investment into Industrial Property, Energy, barn rental and listing its subsidiary Bewin & Coating Vietnam (Bewin & Coating)
On June 24th, 2022, Dong A Paint Joint Stock Company (HDA, Company) successfully held the Annual General Meeting of Shareholders (GMS) for the year 2022. At the Meeting, the GMS approved the Reports and Proposals on the Finance and Corporate Governance of the Company.
The Year 2021 is considered to be a very successful year of the Company when it completed exceedingly the plan and the goals assigned by the GMS whilst the complicated development of the COVID-19 epidemic. The efficient operation of three modern Spanish-standard paint factories located in 3 key regions along with more than 700 distribution networks from North to South has contributed largely to the revenue of the Company. Net Revenue in 2021 recorded VND 269 billion, which grew 3% compared to the same period last year and Profit Before Tax significantly reached VND 35 billion, triple that of 2021 and exceeded 266% of the year plan. As one of the leading companies in the paint industry, the GMS has approved the consolidated Net Revenue’s plan in 2022 with an estimation of VND 280, an increase of 4% compared to the actual result of 2021.
Notably, GMS approved the dividend payment of 31% for the fiscal year 2021-2022. Particularly, 11% cash dividend (6% for 2021, 5% for 2022) and 20% stock dividend. This is considered the highest dividend payout since its inception establishment and is very attractive when the HDA stock market price is trading around par value recently.
In addition, in order to diversify Revenue sources and develop toward sustainability, the GMS approved the plan to expand the investment to new industries including Industrial Real Estate, Energy and barn rental to take advantage of the high market demand and higher profit margin. With the available land bank, HDA is expected to develop the first Industrial Zone in Hanoi to attract domestic and foreign businesses as well as solve the current growing demand for factory investment.
For its subsidiary, implementing the plan of listing Bewin & Coating on UPCOM stock exchange to increase its market share, promote production capacity and the distribution of three main product lines Viglacera, BEHR and BEWIN. The listing of Bewin & Coating which HDA owns 90% shares, will create opportunities to attract offshore investment from international capital markets towards sustainable development for both HDA and Bewin & Coating.
In 2022, the GMS plans to improve the management and development of the Company's resources. Additionally, the GMS also promotes research and applies new technologies in production to improve the quality of its existing products, to launch new strategic and high-tech product lines to meet high demand peaks toward the later months of 2022. They also adjust sales policies for a specific group of customer group as well as expand distribution channels to increase sales.
Painting industry is expected to recover strongly, and the sales of the Company are expected to grow high since the 3rd quarter of 2022 due to the expected re-activation and implementation of some Real Estate projects. With a long history and experience in the Paint industry, modern production lines and a network of more than 700 distributors from the North to the South, HDA is expected to maintain its growth momentum and sustainable development in the coming years.
For further detail, please contact:
Investor Relations Department