Mien Tay Bus Station pays big dividends after a year of big profits

Western Bus Station Joint Stock Company (WCS) paid dividends at a rate of 160%, meaning shareholders will receive 16,000 VND for each share held.

According to a recent resolution, Mien Tay Bus Station will temporarily pay a cash dividend at a rate of 160%, meaning each share will receive VND16,000. WCS has about 2.5 million shares outstanding. Thus, the company will spend VND40 billion on dividends in 2023.

In the immediate future, on March 28, WCS will make an advance payment at a rate of 144%, meaning each share will receive VND14,400. Currently, Mien Tay Bus Station has three major shareholders: Saigon Transport Mechanical Corporation (Samco) holding 51%, foreign investment fund America LLC holding 23.08% and Thai Binh Investment Joint Stock Company owning 10.02% of capital. This time, all three will receive an advance payment of about VND18.4 - 8.3 and 3.6 billion, respectively.

The 160% rate is much higher than the plan. Previously, the Board of Directors decided that the 2023 dividend would be based on actual business results and not lower than 20%. In the previous three years, WCS also planned to pay dividends at the same rate and then closed it at 20% due to business operations being affected by the pandemic.

Mien Tay Bus Station pays out a hefty dividend after a year of good growth. WCS recorded more than VND140 billion in revenue, up 49% and a record since it first announced the information in 2008. After-tax profit increased by nearly 75% to about VND66.5 billion, the highest level in the past four years. The company exceeded its revenue target by 17% but its profit was nearly half the yearly plan.

Except for the years of the pandemic, WCS is known as one of the units that pay the "biggest" and most stable dividends in the market. In 2018, this enterprise offered a rate of 400%, equivalent to 40,000 VND per share. By 2019, the above figure reached a sky-high 516%, equivalent to 51,600 VND.

Shares of Mien Tay Bus Station are among the most expensive in the market. The closing price last weekend was VND202,100 per unit, up 9% compared to the beginning of the year. This market price is at its highest level in nearly three years. During the market correction in October 2023, the market price of this stock decreased slightly but was still trading around VND170,000, with low liquidity.

Siddhartha

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