Unable to increase capital to 700 billion VND, as well as the real estate sector continuing to face difficulties, Binh Duong Construction and Transport Joint Stock Company (Becamex BCE, code BCE) is having difficulty with cash flow when participating in new fields.
 |
Three consecutive years of not paying dividends when entering the real estate field
In the past 3 - 5 years, companies related to Industrial Investment and Development Corporation - Joint Stock Company (Becamex, code BCM) in Binh Duong have attracted special attention from investors on the stock exchange. bonded by an attractive, regular annual cash dividend policy for shareholders.
However, in 2022-2023, the cash dividend policy of the business group related to Becamex has changed. From paying regular dividends, these businesses began to delay paying dividends to shareholders.
At Becamex BCE, in the content presented to shareholders at the general meeting of shareholders on April 12, this unit plans to not pay dividends in 4 (in 2023, it also will not pay dividends to shareholders).
Previously, on April 26, 4, Becamex BCE approved the payment of dividends in 2022 at a rate of 2021%, equivalent to paying a total of 5 billion VND to shareholders and approved the plan to issue shares to increase capital. charter from 17,5 billion VND to 350 billion VND to supplement capital for production and business activities.
However, on April 19, 4, the Company agreed to postpone dividend payments in 2023 and not pay dividends in 2021 to focus capital on business activities, and at the same time approved not paying dividends in 2022. Present plan to issue shares to increase capital.
Previously, the Company continuously maintained attractive cash dividends for shareholders, such as in 2016 paying dividends at a rate of 8%, in 2017 paying dividends at a rate of 8%, in 2018 at a rate of 10%, in 2019 with a rate of 12% and in 2020 with a rate of 9%.
In fact, as of December 31, 12, Becamex BCE only owned a cash fund of VND 2023 billion, accounting for 35,8% of total assets. Meanwhile, total debt amounted to 5,2 billion VND, equal to 111,7% of equity.
In addition to limited cash, also at the end of 2023, Becamex BCE's assets were VND 529,7 billion, including short-term and long-term third-party receivables, accounting for 77% of total assets; Long-term inventory and unfinished assets were only recorded at 49,5 billion VND, accounting for 7,2% of total assets...
Thus, limited cash funds and assets mainly located in third parties are causing cash flow difficulties for Becamex BCE.
Real estate contributes to revenue, but not significantly
Becamex BCE was established in 2002 to meet the construction needs of internal and external projects of Becamex with an initial charter capital of 7 billion VND, business area mainly concentrated in Binh Duong province. .
By 2021, Becamex BCE has offered to sell an additional 5 million BCE shares to the outside world to increase its charter capital from 300 billion VND to 350 billion VND. In particular, the mobilized money is used to pay the construction costs of Resettlement Area - Residential Hamlet 4 (Minh Thanh commune, Chon Thanh district, Binh Phuoc province) and Residential Area Project 5F (hamlet 5, Lai Chau). Uyen, Bau Bang district, Binh Duong province).
Notably, after issuing shares, Becamex's ownership ratio at Becamex BCE decreased from 51,82% to 44,42% and has maintained this ownership ratio until now. Although it no longer owns more than 51%, Becamex is still accounted as the parent company of Becamex BCE, because it still has control over activities at Becamex BCE.
Regarding business activities, after many years of implementing construction projects for related units of the parent company Becamex, in the past few years, Becamex BCE has become an investor implementing the construction of housing projects. trade - worker services at Bau Bang Industrial and Urban Park (Binh Duong), commercial housing project - worker services in Chon Thanh district (Binh Phuoc).
In particular, in terms of the contribution structure of the real estate sector in revenue, 2021 recorded 9,51 billion VND, accounting for 8,93% of total revenue; No revenue will be recorded in 2022; 2023 will record about 29,4 billion VND, accounting for 23,96% of total revenue.
In 2024, Becamex BCE plans to continue expanding and developing real estate projects, promoting the issuance of land and housing use rights certificates for customers, and implementing debt recovery solutions.
In particular, the Company will continue to construct projects that have been implemented in 2023 and start new projects, such as commercial housing projects - worker services at Becamex Industrial Park - Binh Phuoc; R2A Ecolakes infrastructure project; Construction of commercial and service housing for Bau Bang workers in Binh Duong
In fact, due to entering the real estate field during a difficult period and the capital increase from VND 350 billion to VND 700 billion to supplement project implementation capital was not continued, Becamex BCE is showing signs of Difficulties in mobilizing capital, leading to the inability to ensure cash flow to pay dividends, as well as generating dividend debt.
