Western Bus Station Joint Stock Company is about to pay a cash dividend of 144%.

After several consecutive years of paying a 20% dividend, Ben Xe Mien Tay Joint Stock Company has just announced an interim dividend for 2023 of up to 144% (meaning each share will receive 14,400 VND) thanks to positive business growth results.

Western Bus Station Joint Stock Company (stock code: WCS) has just announced the closing of the shareholder list for receiving an interim dividend for 2023 in cash at a rate of 144%, equivalent to VND 14,400 per share.

In an announcement released on the afternoon of February 29th, the company stated that the last registration date to receive the interim dividend is March 15th and the payment date is March 28th. With 2.5 million shares outstanding, it is estimated that the Western Bus Station will spend 36 billion VND to pay interim dividends to shareholders.

The recently announced dividend rate far exceeds the plan approved at last year's annual general meeting of shareholders. At that time, the Board of Directors stated that the 2023 dividend payout ratio would be based on the company's actual business performance and would not be lower than 20%.

As of January 23rd, the Western Bus Station has three major shareholders: Saigon Transport Mechanical Corporation with a 51% stake, followed by America LLC with 23.08%, and Thai Binh Investment Joint Stock Company with 10%. Based on the interim dividend, Saigon Transport Mechanical Corporation will receive over 18 billion VND, America LLC over 8 billion VND, and Thai Binh Investment Joint Stock Company approximately 3.6 billion VND.

The 144% cash dividend is the highest in the last three years for the Western Bus Station. The company distributed a 20% dividend annually during the Covid-19 period, while prior to that, the dividend yield was typically over 200% per year. The peak was 400% in 2018 and 516% in 2019.

The surge in dividend payouts was finalized after the company announced its positive 2023 business results. Specifically, the Western Bus Station generated VND 140 billion in revenue, a 49% increase compared to the previous year. This is the highest level since the company was listed on the stock exchange in 2010. The company reported a pre-tax profit of VND 83 billion and an after- tax profit of VND 66.4 billion, a 73% increase compared to the previous year. All these figures far exceeded the company's targets set at the beginning of the year. At the start of the year, management projected serving 8.78 million passengers to achieve VND 120 billion in revenue, VND 56 billion in pre-tax profit, and VND 44.8 billion in after-tax profit.

In the last quarter of 2023 alone, the company recorded net revenue of VND 34.8 billion, a 20% increase compared to the same period last year. After deducting the cost of goods sold, the company's gross profit was VND 21.6 billion, corresponding to a gross profit margin of 62%. However, business management expenses nearly doubled compared to the same period last year, resulting in a net profit after tax of only VND 15 billion, 12.6% higher than the same period last year.

According to the company's management, the double-digit growth in the last quarter of the year was due to the company implementing a fee collection system for vehicles entering and exiting the terminal based on a schedule approved by the route management authority. Additionally, the ban on sleeper buses entering the inner city area prompted transport companies to operate their vehicles within the terminal.

By the end of the year, the company had total assets exceeding VND 284 billion, an increase of VND 67 billion compared to the beginning of the year. Cash and short-term bank deposits accounted for an overwhelming proportion of the company's assets, nearly 86%, or VND 244 billion. The company had liabilities exceeding VND 81 billion, approximately three times higher than at the beginning of the year due to a sharp increase in short-term payables.

WCS shares are currently trading at VND 193,100, a significant increase from the VND 180,000 range at the beginning of the year. The company's market capitalization at this price is VND 482 billion.

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