BMP – Maintaining high dividend yield
- In 2023, BMP recorded revenue of VND 5.2tn (USD 211mn, -11%YoY). Gross profit margin (GPM) increased by 13% (to 41% in 2023), thanks to: 1/ Stable selling prices, thanks to its leading market share in the Southern market, and less competitive pressure from imported products; 2/ Input raw material prices (mainly in terms of PVC resins) dropped sharply to USD 835/ton (-25%YoY). As the result, net profit after tax still recorded growth by 50% YoY and reached VND 1,041bn (USD 42mn).
- For 2024, we expect the sales volume to slighly recover, with residential real estate projects to accelerate sales in 2024, along with the construction phase and increased demand for raw materials (including BMP’s products). Thereby, sales output and revenue could reac 90 thousand tons (up 3.4%YoY) and VND 5,335bn VND (+3.4%YoY), respectively.
- With the scenario of PVC resin price traded at USD850/ton (+2%YoY), GPM will decrease slightly to 39.2% and gross profit will reach VND 2,089 bn (USD 85mn, -1.3%YoY). 2024 net profit can reach VND 949 bn (USD 38.4mn, -9%YoY, completing 92% of the business plan). 2024 EPS to be VND 10,549, and we expect the 2024 cash dividend to be VND10,000/share.
- We use FCFE, DDM and PE methods to value stocks. Accordingly, the fair value is determined at VND104,000/share, corresponding to a total expected 12-month return of +16% based on the closing price on July 2, 2024 (Including cash dividend of 10,000 VND/share, corresponding to a dividend yield of 10%). We think that BMP is suitable for investors who prefer stable income, as the dividend yield is relatively attractive compared to other listed companies.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.