Binh Minh Plastics shares hit historic peak

BMP shares of Binh Minh Plastic Joint Stock Company (stock code: BMP) hit the ceiling price in the session on September 19, climbing to the highest peak since being listed on the stock exchange.

BMP shares closed today's trading session at 121,600 VND, increasing the maximum range compared to the reference and closing with no sellers. The trading volume of this session reached 751,100 shares, nearly 4 times higher than yesterday's session (September 18) and the highest level in the past 5 months. These stock trading orders were mainly executed by domestic investors.

BMP shares have increased in 7 of the last 8 trading sessions, accumulating a total of 18% and bringing the market price from 102,600 VND to the highest level since the company listed on the Ho Chi Minh City Stock Exchange in 2006. Compared to the price of 109,000 VND at the beginning of this year, BMP's market price has increased by 11.5%. The strong increase has brought the company's market capitalization to nearly 10,000 billion VND.

The current price range is higher than the optimistic scenario forecast of many analysis groups. Typically, KB Securities Vietnam Company in mid-August said that the target price of BMP stock in the next one year is 118,500 VND, an increase of 15% compared to the time this group made the forecast.

KB Vietnam pointed out 3 highlights to recommend buying, including gradual recovery of consumption output in the second half of the year, expectation of high gross profit margin and attractive dividend yield.

BMP's stock euphoria continues despite the company being in an information vacuum. The most recent information was announced by the company in early August about its semi-annual business results. Specifically, the company recorded net revenue of more than VND 2,156 billion, down 22.3% (equivalent to VND 620 billion) over the same period. Gross profit was more than VND 930 billion, down 17.5% compared to VND 1,127 billion in the first half of 2023. After deducting expenses, the company reported a profit after tax of VND 470 billion, down 18.3% over the same period last year.

Compared to the annual revenue plan of VND5,540 billion and after-tax profit of VND1,030 billion, Binh Minh Plastics completed 39.4% and 45.6% of the target after the first half of the year, respectively.

Previously, at the annual general meeting of shareholders, the Board of Directors of Binh Minh Plastics said that the company's business lines are closely related to the real estate and construction markets. Therefore, if these two fields improve, the company's production and business results will be better.

The Board of Directors said the company is facing the challenge of completing its yearly tasks, so results are unlikely to skyrocket. “The first quarter of 2024 results have not met the plan, but the second quarter has shown positive signs. Hopefully, we will achieve the annual plan in the last 6 months of the year,” the Board of Directors shared.

The company plans to pay a dividend of at least 50% of its after-tax profit in 2024. Meanwhile, the dividend payout ratio for 2023 is 126%, equivalent to VND12,600 per share. The company has paid two dividends at rates of 65% and 61%, respectively. According to the board of directors, this is a very positive level while other companies are still facing many difficulties.

Binh Minh Plastics' total assets as of the end of the second quarter reached VND3,085 billion, down about VND170 billion compared to the beginning of the year. Of which, short-term assets accounted for the majority with more than VND2,467 billion (equivalent to 80%).

The company has a debt of about 434 billion VND, down 23% from 565 billion VND at the beginning of the year. Of which, short-term debt accounts for 96%, equivalent to 416 billion VND. Owner's equity currently reaches about 2,651 billion VND.

Source: https://baodautu.vn/co-phieu-nhua-binh-minh-cham-dinh-lich-su-d225369.html