 |
| With deposit interest rates at low levels, Agriseco believes the appropriate strategy at present is to buy good stocks at reasonable prices. |
VEA - Dividend yield 13%/year, ROE nearly 30%
Vietnam Engine and Agricultural Machinery Corporation (VEA) maintains the tradition of paying high and regular cash dividends every year. The cash dividend yield for 2022, 2023, 2024 is 11.4%; 12.4%; 13.2%/year, respectively. With the current market price and expected dividend payout ratio for 2025, VEA's cash dividend yield is high at 13%/year.
VEA has stable business results and has maintained them over the years. The ROE profitability ratio is high, reaching nearly 30% for the last 4 quarters and has always maintained this level for many years. The financial structure is healthy with total cash, cash equivalents and short-term financial investments of about 13,500 billion VND, accounting for about 50% of the total assets of the enterprise. VEA's valuation is at P/E ~ 7.0 times and P/B ~ 2.0 times - quite attractive with the current ROE profitability ratio and cash dividend yield.
QTP - Benefit from increased electricity demand, dividend 12.8%/year
Quang Ninh Thermal Power Joint Stock Company (QTP) pays high and regular cash dividends every year. The cash dividend yield for 2022, 2023, 2024 is 5.0%; 19.7%; 12.5%/year, respectively. With the current market price and expected dividend payout ratio for 2025, QTP's cash dividend yield is attractive at 12.8%/year.
QTP has stable annual business results with the business operations of thermal power plants in the Northern region. The total electricity production and import output in 2025 is forecast to reach about 347.5 billion kWh, an increase of 12.2% compared to 2024, equivalent to an increase of about 37 billion kWh. In the context of hydropower needing to store water for the dry season and renewable energy is not stable, coal-fired thermal power continues to be prioritized to ensure electricity supply, which will help QTP benefit.
Healthy financial structure, debt continues to decrease in 2024 and positive operating cash flow for many years. Valuation is at P/E ~ 10.0x and P/B ~ 1.2x, which is reasonable given the company's high cash dividend yield.
SAB - Dividend 10.6%, strong finance
Saigon Beer - Alcohol - Beverage Corporation (SAB) pays regular cash dividends every year. In particular, in 2024, SAB's cash yield will reach 9.4%. With a plan to pay a 50% cash dividend (equivalent to VND 5,000/share) in 2025, SAB's cash dividend yield will be up to 10.6%, which is quite attractive.
 |
SAB's stock price has continuously decreased in recent years, bringing the stock valuation to P/E ~ 14 times and P/B ~ 2.6 times, much lower than the historical valuation. However, it is necessary to note the risks for the beer industry as this is an industry facing many difficulties due to Decree 100 and the trend of young people consuming less alcohol.
The company has a healthy financial structure with a very low debt/equity ratio, cash, cash equivalents and short-term financial investments amounting to about VND21,000 billion, accounting for more than 60% of total assets. This helps SAB ensure a high cash dividend ratio for many years to come.
QNS - Benefit from sugar prices, dividend 10%/year
Quang Ngai Sugar Joint Stock Company (QNS) pays high and regular cash dividends every year. The cash dividend yield for 2022, 2023, 2024 is 6.2%; 8.7%; 8.7%/year, respectively. With the current market price and expected dividend payout ratio for 2025, QNS's cash dividend yield is high at 10%/year.
QNS has maintained profit growth over the past several years with its core business being sugar production and trading. The outlook for 2025 continues to be positive due to high sugar prices and is expected to continue to increase as the global balance deficit will worsen in the 2024-2025 crop year, falling to ~3.58 million tons due to the consequences of forest fires in Brazil. The industry is still benefiting from Vietnam's anti-dumping tax on sugar from Thailand and other countries in the region.
The company has a healthy financial structure with total cash, cash equivalents and short-term financial investments of over VND 7,800 billion, accounting for 57% of total assets. Low debt ratio along with continuously positive operating cash flow for many years helps QNS ensure a high cash dividend payout ratio in the coming years.
Source: https://thoibaonganhang.vn/6-co-phieu-manh-ve-co-tuc-theo-goi-y-cua-agriseco-research-163381.html
Comment (0)