Shares of Binh Minh Plastic Joint Stock Company (stock code: BMP) hit the ceiling price on September 19th, reaching their highest peak since listing on the stock exchange.
BMP shares closed today's trading session at VND 121,600, reaching the maximum allowed increase compared to the reference price and closing with no sellers. Trading volume reached 751,100 shares, nearly four times higher than yesterday's session (September 18th) and the highest level in the past five months. Most of these transactions were executed by domestic investors.
BMP shares have risen in 7 of the last 8 trading sessions, accumulating a total increase of 18% and pushing the share price from VND 102,600 to its highest level since the company was listed on the Ho Chi Minh City Stock Exchange in 2006. Compared to the price of VND 109,000 at the beginning of this year, BMP's share price has increased by 11.5%. This strong upward trend has pushed the company's market capitalization to nearly VND 10,000 billion.
The current price range is higher than the optimistic projections of many analytical groups. For example, in mid-August, KB Securities Vietnam predicted that the target price of BMP shares within the next year would be VND 118,500, a 15% increase compared to the time when the group made its forecast.
KB Vietnam points out three key factors to recommend buying: gradually recovering sales volume in the second half of the year, expectations of maintaining high gross profit margins, and an attractive dividend yield.
The bullish sentiment surrounding BMP shares persists despite the company's current information vacuum. The most recent information released by the company in early August concerns its half-year business results. Specifically, the company recorded net revenue of over VND 2,156 billion, a decrease of 22.3% (equivalent to VND 620 billion) compared to the same period last year. Gross profit was over VND 930 billion, a decrease of 17.5% compared to VND 1,127 billion in the first half of 2023. After deducting expenses, the company reported a net profit of VND 470 billion, a decrease of 18.3% compared to the same period last year.
Compared to the full-year revenue plan of VND 5,540 billion and after-tax profit of VND 1,030 billion, Binh Minh Plastics has achieved 39.4% and 45.6% of its targets respectively after the first half of the year.
Previously, at the annual general meeting of shareholders, the management of Binh Minh Plastic stated that the company's business is closely related to the real estate and construction markets. Therefore, if these two sectors thrive, the company's production and business results will be better.
The management stated that the company is facing the challenge of completing its full-year targets, making a significant surge in results unlikely. "The Q1/2024 results did not meet the plan, but Q2 showed positive signs. We hope to achieve our annual plan in the last six months of the year," the management shared.
The company plans to pay a minimum dividend of 50% of after-tax profit in 2024. Meanwhile, the dividend payout ratio for 2023 was 126%, equivalent to VND 12,600 per share. The company has already distributed dividends in two installments, with payout ratios of 65% and 61% respectively. According to management, this is a very positive outcome while other companies are still facing many difficulties.
Binh Minh Plastic's total assets at the end of the second quarter reached VND 3,085 billion, a decrease of approximately VND 170 billion compared to the beginning of the year. Of this, short-term assets accounted for the majority, at over VND 2,467 billion (equivalent to 80%).
The company currently has liabilities of approximately VND 434 billion, a 23% decrease from VND 565 billion at the beginning of the year. Of this, short-term debt accounts for 96%, or VND 416 billion. Shareholder equity currently stands at approximately VND 2,651 billion.
Source: https://baodautu.vn/co-phieu-nhua-binh-minh-cham-dinh-lich-su-d225369.html
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