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Nawaplastic's Investment in Bình Minh Plastics yields impressive returns
Having invested a vast amount of money in the acquisition of Bình Minh Plastics Joint Stock Company (BMP), Nawaplastic Industries Co Ltd from Thailand has thus far reaped impressive profits.
Inside a factory of Bình Minh Plastics Joint Stock Company (BMP). — Photo BMP
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At the 2024 annual general shareholders' meeting slated for April 29, the Board of Directors of Bình Minh Plastics intends to propose a cash dividend distribution plan for the year 2023, with an impressive rate of 126 per cent. This means that each shareholder owning one BMP share will receive a dividend of VNĐ12,600.
Following the dividend payout, Nawaplastic Industries, a subsidiary of the Thai SCG Group, will be eligible to receive dividends worth VNĐ275 billion (US$11 million), as they hold a controlling stake of 55 per cent in Bình Minh Plastics.
Bình Minh Plastics' shareholders, notably Nawaplastic, profit from the company's consistent high dividend payouts, primarily in cash, with an impressive 84 per cent payout rate in 2022.
Nawaplastic initiated the acquisition of Bình Minh Plastics in 2021, initially investing VNĐ352 billion to acquire 7.13 million BMP shares, gaining a 20.38 per cent controlling stake. By 2017, they accumulated 16.7 million BMP shares, maintaining the same stake. Since 2018, Nawaplastic has increased its ownership through multiple purchases, currently owning around 45 million BMP shares, equivalent to a 55 per cent stake.
Their total investment in Bình Minh Plastics is approximately VNĐ2.8 trillion. This investment now holds a market value of over VNĐ5.4 trillion, resulting in a provisional profit of VNĐ2.6 trillion, with an impressive profit rate of 93 per cent. Since March 2012, Nawaplastic has received dividends exceeding VNĐ2 trillion as a major shareholder of Bình Minh Plastics.
For 2024 targets, Bình Minh Plastics aims for a revenue of VNĐ5.5 trillion, reflecting a 6.5 per cent increase compared to 2023. However, the estimated after-tax profit is expected to reach VNĐ1 trillion, indicating a 1 per cent decrease from 2023.
Bizhub
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