BFC – Expecting a high dividend yield at this current market price
- BFC achieved net revenue of VND1,894 bn in 4Q2022, flat compared to the same period last year. Sales volume was down 27.7% despite the peak season. Selling price increased sharply by 42.1%. 4Q2022 gross margin reached 8.8% - relatively low compared to average and NPATMI in 4Q2022 decreased by 79.7% to VND 16 bn. For the 2022, the company's net revenue reached VND 8,581 bn and NPATMI was VND 141 bn.
- Fertilizer prices maintained a high price level in 2022, affecting the sales volume. Given the current cooling down in fertilizer prices, we believe that the company's consumption volume will improve in 2023 and gross margin may increase slightly when input material prices are not volatile.
- After benefiting from the uptrend of fertilizer prices, the business of BFC will turn to normal and is considered as a cash dividend player. We think the company can maintain a cash dividend of VND1,500/share this year and next year. At the current stock price, the dividend yield is at 9%. Recently, BFC has submitted a dividend payment plan of VND 2,000/share for 2022, of which BFC paid 600 VND/share in advance. We believe that investors can ACCUMULATE BFC shares at this price to enjoy the attractive cash dividend. Regarding the business results of 2023, we forecast that BFC can achieve VND 6,952 bn in revenue and VND 155 bn in NPATMI. EPS 2023 is estimated at 2,441 VND/share.
Binh Dien Fertilizer Jsc. Binh Dien Fertilizer Joint Stock Company (BFC) is a Vietnam-based company, which is mainly engaged in the manufacture and commerce of agricultural chemicals. The Company's leading products are various types of nitrogen-phosphorus-potassium (NPK) fertilizers under the brand name of Dau Trau, as well as other chemicals and farm supplies. The Company's products are not only distributed within Vietnam, but also exported to foreign markets, such as Cambodia, Myanmar and Laos. Other regular undertakings of the Company include the trading of industrial machinery and equipment for fertilizer manufacturing activities, together with the leasing of warehouses. Via its subsidiary, the Company also partakes in the provision of marketing consulting services.
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