Vietnam industrial park developer Becamex IJC to pay $10.8 mln in 2023 dividends

Becamex IJC, a leading urban and industrial park developer in Vietnam, plans to pay 2023 cash dividends to shareholders at a rate of 7% this December.

The firm, listed on the Ho Chi Minh Stock Exchange (HoSE) as IJC, said it will finalize the list of shareholders eligible for the 2023 cash dividends on September 27.

Shareholders will receive VND700 ($0.03) per share, which is expected to be delivered on December 26.

With over 377.7 million floating shares, Becamex IJC is estimated to pay a total of more than VND264.4 billion ($10.8 million).

Becamex IJC paid dividends at a rate of 14% in 2022 and 7% in 2023; and the figure is projected to further drop to around 5% for 2024, showing a downward trend.

Falling profits

Following a significant business downturn in Q1/2024, Becamex IJC continued to report a drop in Q2 and the first half of 2024.

In Q2, Becamex IJC recorded revenue of VND388.59 billion ($15.83 million) and after-tax profit of VND73.53 billion ($3 million), down 44.9% and 48.2% year-on-year, respectively. However, the gross profit margin improved from 29.4% to 36.3%.

The Q2 revenue reduction was primarily due to no revenue derived from construction activities, which had contributed VND128.87 billion ($5.25 million) in the previous year.

Real estate revenue fell by 44.8% year-on-year to VND231.98 billion. Conversely, toll revenue inched up 4.1% compared to the beginning of the year to VND75.59 billion.

During this period, Becamex IJC’s gross profit decreased by 32.2% year-on-year to VND141 billion ($5.74 million) and its financial expenses surged 47.2% to VND17.84 billion ($726,828). Sales and administrative costs rose by 15.7% to VND28.27 billion ($1.15 million), while other activities showed minor fluctuations.

For H1/2024, Becamex IJC reported revenue of VND550.73 billion ($22.44 million) and after-tax profit of VND112.75 billion ($4.6 million), down 47.1% and 54.8% year-on-year, respectively.

In 2024, the firm targeted revenue of VND2,206 billion ($89.9 million), and after-tax profit of VND511 billion ($20.82 million), up 44% and 29% from 2023, respectively. After H1, it had achieved only 22.1% of the year's ambitious profit target.

As of June 30, 2024, Becamex IJC’s total assets rose 22.9% from the beginning of the year to VND7,869 billion ($320.6 million). Of which, inventory was VND4,018 billion, accounting for 51.1%; long-term receivables VND753.95 billion or 9.58%; long-term financial investments VND707.3 billion or 9%; and short-term receivables VND651 billion or 8.3%.

The increase in total assets during this period was largely due to increased inventory, which grew by 45.3% compared to the beginning of the year to VND4,018 billion.

Notably, Becamex IJC's overdue receivables reached VND439.4 billion ($17.9 million) by end-Q2, compared to VND433.8 billion at the year beginning. It included VND1.12 billion from Apax English Corporation, with a recoverable value of VND790 million; and VND438.24 billion from the sale of real estate to various organizations and individuals, with full recovery potential.

By end-Q2, Becamex IJC’s total short-term and long-term debts decreased by 43.8% compared to the year beginning to VND557.16 billion ($22.7 million), equivalent to 11.3% of its equity.

In H1, Becamex IJC raised its charter capital from VND2,518 billion to VND3,777 billion ($153.88 million). After this capital increase, Becamex IDC (HoSE: BCM) remains the largest shareholder with a 49.8% stake in Becamex IJC.

In the stock market, IJC shares closed Friday at VND13,850 ($0.56) apiece.