HTL shares hit a 7-year high as dividend increased from 20% to 65%.

Shares of Truong Long Automotive and Engineering Joint Stock Company (HTL) surged to the ceiling price of 24,250 VND, the highest price in the past 7 years, after the management board sought shareholder approval to increase the dividend from 20% to 65%.

Shares of Truong Long Automotive and Engineering Joint Stock Company (stock code HTL) rose 6.83% to VND 24,250 in the first trading session of the week (October 14) and closed with no sellers. Today's increase extended a three-session winning streak, establishing the highest price level since February 2017.

Not only has the share price fluctuated significantly, but the flow of money into HTL shares has also improved considerably. Specifically, in the October 14th trading session, the trading volume reached 21,500 units, five times higher than the previous session, with a successful transaction value of 521 million VND. HTL's market capitalization reached 291 billion VND.

HTL stock price chart.

The surge in HTL shares coincided with the company's management announcing a shareholder consultation regarding a change in the 2024 dividend payout ratio to 65%, meaning each share would receive 6,500 VND. Previously, at the 2024 Annual General Meeting held in May 2024, the company approved a dividend payout plan for this year not exceeding 20%.

This would be HTL's highest dividend payout since its listing, if the proposed increase in the dividend rate is approved.

Truong Long Automotive and Engineering Joint Stock Company is a business that consistently pays cash dividends year after year. In March and July 2024, the company paid dividends for 2023, with a total rate of up to 50%.

Besides seeking shareholder approval for the dividend payment plan, the Board of Directors approved adjustments to the phase 3 investment plan at the Vinh Long branch and the renovation of facilities at the head office in Ho Chi Minh City.

In addition, the board of directors also presented to shareholders a plan to increase charter capital to fund projects in 2025 and approved the resignation of Ms. Le Thi Ngoc Hanh, a member of the Supervisory Board.

For the first half of the year, Truong Long Automotive and Engineering Joint Stock Company recorded net revenue of VND 206 billion, a decrease of 8% compared to the same period last year. Gross profit during this period was approximately VND 27.4 billion, with a gross profit margin of 13.3%.

After deducting expenses, the company reported a pre-tax profit of VND 16.6 billion and an after- tax profit of VND 13.3 billion, both more than double compared to the same period last year.

According to management, sales of specialized equipment and specialized vehicles grew more than in the first six months of 2023. In addition, efficient cash flow management and favorable exchange rates also contributed significantly to the improvement in profits.

This year, Truong Long Automotive and Engineering Joint Stock Company plans for net revenue of VND 392.7 billion, a 40% decrease compared to the previous year. After-tax profit is projected to decrease by 87% compared to 2023, reaching VND 5 billion.

After six months, the company had achieved 52.5% of its revenue target and exceeded its profit target by 163%.

As of the end of Q2/2024, the company had total assets of over VND 391 billion, a slight decrease compared to VND 448 billion at the beginning of the year. Liabilities amounted to over VND 179 billion, mostly short-term debt. Equity was over VND 212 billion, and undistributed after-tax profit reached VND 92 billion.

Source: https://baodautu.vn/co-phieu-htl-len-dinh-7-nam-khi-tang-co-tuc-tu-20-len-65-d227435.html