Revenue from selling votive paper of the only company on the floor is the lowest in 10 years.

Votive paper sales brought CAP nearly 39 billion VND in revenue in 2023, a decrease of more than 60% compared to the same period and the lowest level in 10 years.

According to the first quarter 2024 financial report (equivalent to the fourth quarter of 2023) of Yen Bai Forestry and Agricultural Products Joint Stock Company (CAP), revenue increased by 18% compared to the same period, reaching nearly 187 billion VND. However, the cost of goods sold increased even more significantly, causing after-tax profit to decrease by 31%, to approximately 14 billion VND.

Cassava starch was the only major business segment that experienced growth, while revenue from joss paper and base paper declined. Specifically, revenue from joss paper fell by 53%, reaching nearly 12 billion VND in the last quarter of last year.

Overall last year, revenue from the sale of votive paper brought in nearly 39 billion VND for the local police. This figure is 2.5 times lower than in 2022 and the lowest in the past 10 years.

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 the "backbone" of its business is cassava starch, 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.

Besides its core business, CAP is also known for paying high dividends. In the 2023 fiscal year, thanks to record profits, the company approved a 100% dividend rate for the second consecutive year, split in half: cash and shares. For each share, shareholders received 5,000 VND and 0.5 new shares.

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%.

Tat Dat

Source link