Sonadezi Chau Duc plans for a slight increase in profits.

Sonadezi Chau Duc Joint Stock Company (SZC - HoSE) has announced the documents for its 2024 Annual General Meeting of Shareholders, scheduled to be held on April 5, 2024 in Ba Ria - Vung Tau.

In 2024, Sonadezi Chau Duc plans to achieve revenue of VND 881.09 billion, a 5.4% increase compared to the same period last year, and projected after-tax profit of VND 228.15 billion, a 4.2% increase compared to 2023. Of this, total capital investment is projected at VND 449.46 billion.

The company stated that the two main segments expected to contribute the most to revenue in 2024 are industrial land leasing (approximately VND 625.7 billion) and real estate business (approximately VND 119.2 billion). In addition, the Chau Duc golf course business is expected to generate VND 50.06 billion, along with other business areas.

In 2023, Sonadezi Chau Duc planned a total capital investment cost of VND 385.71 billion, but only invested VND 234.2 billion, reaching 60.72% of the plan. The delay in investment compared to the plan was related to the industrial park project, the urban area project, and the BOT project for road 768.

Returning to the upcoming General Meeting presentations, regarding profit distribution for 2023, Sonadezi Chau Duc is proposing a dividend plan of 10% for 2023 and a further 10% dividend for 2024.

Sonadezi Chau Duc wants to borrow 3,000 billion VND from VietinBank.

In addition, Sonadezi Chau Duc Company recently approved a loan plan with collateral from Vietnam Commercial and Industrial Bank - Branch 7 in Ho Chi Minh City.

Vietnam Joint Stock Commercial Bank for Industry and Trade - Branch 7 in Ho Chi Minh City will grant Sonadezi Chau Duc Company a total long-term loan limit of VND 3,000 billion and a new short-term loan limit of VND 100 billion to supplement working capital. Of this, the new long-term loan limit of VND 2,000 billion will be used to continue the investment and implementation of the Chau Duc Industrial Park project.

Furthermore, the loan will be secured/pledged with assets to Vietnam Commercial and Industrial Bank - Branch 7.

As of December 31, 2023, Sonadezi Chau Duc Company had total short-term and long-term debt amounting to VND 2,667.8 billion, equivalent to 154% of its equity. Of this, short-term debt was VND 624.2 billion and long-term debt was VND 2,043.6 billion.

In terms of long-term debt structure, the majority is VND 1,328.3 billion from Vietnam Commercial and Industrial Bank - Branch 7; VND 284.6 billion from Vietnam Investment and Development Bank - Dong Nai Branch; and VND 115 billion from Woori Bank Vietnam…

Most of the funds raised were used to repay debts.

Another point worth noting is that on January 8, 2024, Sonadezi Chau Duc Company finalized the list of shareholders entitled to purchase additional shares at a ratio of 2:1, meaning shareholders owning 2 shares are entitled to purchase 1 additional new share at a price of VND 20,000 per share.

Furthermore, from January 16, 2024 to February 20, 2024, investors were scheduled to register to purchase and pay for the additional shares offered. However, Sonadezi Chau Duc Company unexpectedly extended the payment period from January 16 to March 15, 2024.

The company is estimated to offer nearly 60 million shares to raise nearly 1.2 trillion VND. Of this amount, the company plans to use 800 billion VND to restructure its loans with credit institutions and pay principal and interest on maturing bonds; and the remaining nearly 400 billion VND will be used to supplement investment capital for the construction of the Chau Duc Industrial Park project in Chau Duc district, Ba Ria - Vung Tau province.

According to the prospectus for the share offering, Sonadezi Chau Duc Company has two major shareholders: the Industrial Park Development Corporation, owning 46.84% of the charter capital; and Sonadezi Long Thanh Joint Stock Company, owning 10.08% of the charter capital; the remaining 43.08% of the charter capital belongs to minority shareholders owning less than 5% of the charter capital.

Another noteworthy development is that Sonadezi Chau Duc Company has just approved an increase in investment capital for the Chau Duc Urban Area project from VND 1,237.43 billion to VND 9,804.4 billion, a 6.92-fold increase compared to the initial plan, equivalent to an additional VND 8,566.97 billion.

Regarding the reason for the project's cost overrun, the company stated that due to the actual implementation situation, the Chau Duc Urban Area project has changed in scale, total investment capital, and implementation schedule, therefore the company had to adjust the investment plan for the Chau Duc Urban Area project.

Source: https://baodautu.vn/sonadezi-chau-duc-len-ke-hoach-loi-nhuan-tang-nhe-d210986.html