Gold votive paper company pays 100% dividend after record profit year

With a profit of over 114 billion VND in the 2023 fiscal year, CAP allocated over 50 billion VND and issued an additional 5 million shares to distribute dividends to shareholders.

According to a recent resolution, Yen Bai Forestry and Agricultural Products Food Joint Stock Company (Yfaco - CAP) will pay dividends in the second quarter. The dividend rate is 100%, divided in half: cash and shares. Shareholders owning one share of the company will receive 5,000 VND in cash and 0.5 new shares.

With over 10 million shares outstanding, Yfaco will spend approximately 50 billion VND and issue more than 5 million additional shares to pay dividends. The family of Chairman Truong Ngoc Bien will receive the majority of these dividends, as they currently hold 28.56% of the capital, according to the 2023 annual report. Five members of Mr. Bien's family could receive nearly 14.3 billion VND in cash and acquire more than 1.4 million additional CAP shares.

Yen Bai Food distributes large dividends after a year of record profits. In fiscal year 2023 (October 2022 - September 2023), the company has a revenue of more than 611 billion VND and a profit after tax of more than 114 billion VND. Although revenue decreased, profit increased by 8% compared to the previous year and exceeded the plan by 62%. This is the second consecutive fiscal year that this enterprise has made a profit of more than 100 billion VND and reached a record level.

Since listing on the Hanoi Stock Exchange (HNX) in 2008, Yfaco has consistently paid dividends in cash, with relatively high rates in many years. From 2021 to the present, the company has also been paying mixed dividends, adding the option of stock dividends. In 2022, the company paid a total of 70% to shareholders, while in 2021 it was 100%.

Yen Bai Forestry, Agricultural and Food Products Joint Stock Company is the only listed company on the stock exchange that deals in votive paper. Formerly the Yen Bai Paper Mill, the company specializes in producing and selling cassava starch, base paper, and votive paper under the Yfaco brand.

Although cassava starch is the "backbone" of its business, CAP still earns tens of billions of VND annually from selling votive paper. The record revenue for this product was over 99 billion VND in 2022, equivalent to an average of 8 billion VND per month from selling votive paper. However, in 2023, revenue from selling votive paper dropped to nearly 39 billion VND, 2.5 times lower than in 2022 and the lowest in the past 10 years.

For the 2024 fiscal year, the company has outlined a more conservative business plan, aiming for revenue of 560 billion VND and a minimum after-tax profit of 70 billion VND. Compared to the previous fiscal year, these two indicators represent decreases of 8% and 39%, respectively. Consequently, the dividend yield has also been lowered to a minimum of 35%.

Recently, CAP's share price has reached a new high. The stock has increased for 12 consecutive sessions, currently standing at 97,800 VND per unit as of this afternoon. This is a record high for Yfaco's stock.

Siddhartha

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