Business is bright, fertilizer corporation earns "huge" profits

Supe Lam Thao closes the last registration date to pay 2023 dividends on September 5

Supe Lam Thao plans to pay nearly VND 113 billion in 2023 dividends in September 2024, with a payout ratio of 10% (1 share receives VND 1,000) and nearly 112.9 million shares in circulation, it is estimated that the company will spend nearly VND 113 billion on this dividend.

The ex-dividend date is 4/9/2024 and the expected settlement date is 25/9/2024. The last registration date is 5/9/2024.

This dividend level corresponds to the plan approved at the 2024 Annual General Meeting of Shareholders. Supe Lam Thao said that it will use the source from undistributed profit after tax as of December 31, 2023 according to the 2023 Audited Financial Report.

Currently, Supe Lam Thao has a charter capital of more than 1,128 billion VND. Of which, Vietnam Chemical Group (Vinachem) is the parent company holding up to 69.82% of the enterprise's capital; accordingly, Vinachem will receive the largest dividend of nearly 79 billion VND.

Lam Thao Super Phosphate and Chemicals Joint Stock Company (HNX: LAS) announced on September 5 that it will close the shareholder list to pay 2023 cash dividends, at a rate of 10%, equivalent to each share receiving 1,000 VND.

In 2024, LAS aims to pay dividends of no less than 6% and expects revenue to reach VND3,400 billion, pre-tax profit to be VND136 billion. In the first 6 months of the year, LAS achieved revenue of VND2,127 billion, equivalent to the same period last year, but pre-tax and after-tax profits increased by more than 80%, reaching VND150 billion and VND120 billion respectively, exceeding the annual profit plan by 10.3%.

Supe Lam Thao: Profit in the second quarter of 2024 is the highest in 8 years, reaching the profit plan early.

A bright business quarter for fertilizer companies

Previously, Vinachem said that in the first half of this year, in the group of Vinachem subsidiaries, the production value at real prices was estimated at VND27,136 billion, up 13% over the same period.

The group's revenue in the first 6 months of the year is estimated at 29,595 billion VND, up 10% over the same period, achieving 52% of the yearly plan. Vinachem's profit is estimated at 815 billion VND. The State budget contribution is about 561 billion VND.

According to Vinachem, in the first 6 months of the year, besides LAS having good business results as mentioned above, some units in the group had profits increased compared to the same period such as: DAP - Vinachem Joint Stock Company (Code: DDV) by 46 times, Binh Dien Fertilizer Joint Stock Company (Code: BFC) by 5 times, Can Tho Fertilizer and Chemical Joint Stock Company by 4 times, Southern Rubber Industry Joint Stock Company (Code: CSM) by 2 times.

In fact, the second quarter of 2024 has shown that this is a period of explosive business results for the fertilizer group. DAP Vinachem JSC (Code: DDV) is a unit with after-tax profit in the second quarter of 2024 up to 72 times higher than the same period last year. Net revenue increased by 15%.

According to DAP Vinachem, revenue in the second quarter of 2024 increased sharply thanks to increased output and lower raw material prices, causing the cost of goods sold to increase at a lower rate. In the last quarter, DAP Vinachem sold over 72,000 tons of Dinh Vu DAP fertilizer, equivalent to an increase of 7.5% over the same period last year. In addition, the company also had additional revenue from the sale of acid and NH ₃ . In addition, the unit also recorded additional revenue from financial activities of VND 17 billion.

In the first 6 months of 2024, DAP Vinachem achieved 1,700 billion VND in revenue, up 10% over the same period. After-tax profit was 90 billion VND, more than 90 times higher than the first 6 months of 2023. Compared to the 2024 plan, the enterprise has achieved 52% of the revenue target and more than 90% of the pre-tax profit plan.

Binh Dien Fertilizer Joint Stock Company (Code: BFC) also reported a "huge" profit in the second quarter of the Vinachem group. The company's after-tax profit in the quarter reached more than 190 billion VND, 2.9 times higher than the same period last year.

This is also the quarter with the highest profit in the past 10 years of Binh Dien Fertilizer, higher than the period 2021-2022, the time when the fertilizer - chemical industry benefited from the global commodity fever. The company's gross profit margin also improved significantly, increasing from 11% in the same period to 17% this period.

For Ca Mau Fertilizer (Code: DCM) - the leading enterprise in the urea segment, reported a profit after tax of 570 billion VND, nearly double compared to the same period last year and the highest profit in the last 6 quarters.

In addition to the 17% increase in net revenue, the appearance of another extraordinary profit of 176 billion VND, more than 50 times higher than the same period last year, is the reason why the company made a big profit in the second quarter.

In fact, in the second quarter, the company made a transaction to buy back 100% of the capital of the Korean-Vietnamese Fertilizer Factory (KVF) with a designed capacity of 360,000 tons of NPK/year. The financial report showed a profit from the cheap purchase transaction of 167 billion VND (not incurred in the same period).

Cumulatively from the beginning of the year, Ca Mau Fertilizer's revenue increased by 10% to over VND6,600 billion. Thanks to improved gross profit margin and profit from selling assets at low prices, the company had a profit after tax of VND919 billion, up 70% compared to the previous half year.

The fertilizer market at the end of the year is expected to still have bright prospects.

After a period of downward fluctuations in the first months of 2024, fertilizer prices on the world market have increased again since late May and early June due to tight supply in some markets due to gas shortages. In addition, news that China has delayed the resumption of fertilizer exports has supported the upward trend of this commodity.

Many fertilizer businesses reported strong profits in the first half of 2024.

VCBS Securities Company believes that urea fertilizer prices will increase at the end of the third quarter of 2024 when entering the Winter-Spring crop because the urea market is still under pressure on supply. In addition, it is expected that demand in import markets will increase again from September when entering the world's crop season (wheat, corn).

Along with the expectation that fertilizer prices will increase from the end of the third quarter of 2024, FPTS Securities Company forecasts that domestic urea consumption demand will improve in the second half of 2024 thanks to two supporting factors: First, more favorable weather conditions for agricultural production. Second, agricultural product prices are expected to increase, supporting farmers' ability to pay for fertilizer.

It is known that in the last 6 months of the year, Vinachem and its member units set a target of industrial production value calculated at actual prices of VND 39,629 billion, estimated to reach VND 52,554 billion in 2024.

Revenue for the last 6 months of 2024 reached VND 26,961 billion, estimated to reach VND 56,556 billion in 2024; Consolidated profit for the last 6 months of 2024 reached VND 1,095 billion, estimated to reach VND 1,911 billion in 2024.

The Group said it will implement a financial restructuring project at three fertilizer projects: Ninh Binh Nitrogen Production Plant; Ha Bac Nitrogen Production Plant Renovation and Expansion Project; DAP Fertilizer Plant No. 2 Project, and soon remove the projects from the list of weak projects.

Source: https://danviet.vn/kinh-doanh-sang-sua-tap-doan-chuyen-ve-phan-bon-thu-loi-nhuan-khung-20240903150314342.htm