Rubber firms plan 30-50 per cent dividend in cash

Three companies in the natural rubber industry plan to make 30-50 per cent advance dividend payouts in cash for 2019.

 

Phuoc Hoa Rubber JSC (HoSE: PHR), Dong Phu Rubber JSC (HoSE: DPR) and Binh Long Rubber Industrial Park JSC (UPCoM: MH3) plan to pay dividends in the first quarter of 2020 after the lists of beneficial shareholders are finalised by the end of this month.

Phuoc Hoa Rubber JSC will make the first dividend payout at a 30 per cent rate for 2019, meaning every shareholder will receive VND3,000 (13 US cents) per share.

At the annual shareholders’ meeting in late March, the company planned the total dividend payout rate for 2019 at 40 per cent. The remainder of 2019 dividend, equal to a 10 per cent payout, will be paid later in 2020.

With nearly 135.5 million shares listed on the Ho Chi Minh Stock Exchange, the company will spend VND406.5 billion ($17.63 million) on the upcoming payout.

The two other firms – Dong Phu Rubber JSC and Binh Long Rubber Industrial Park JSC – will make a 2019 dividend payout at 50 per cent, meaning every shareholder will receive VND5,000 per share.

The two companies will pay VND60-300 billion for their dividend payouts.

The firms’ decisions come after they reported positive performances in the first nine months of the year.

Phuoc Hoa Rubber earned VND1.16 trillion in its nine-month revenue and VND650 billion in nine-month post-tax profit. The figures were up 31 per cent and 64 per cent on-year.

Binh Long Rubber Industrial Park saw total net revenue jump by 23 per cent year on year to VND39 billion in January-September. Post-tax profit in the same period also rose 23 per cent on-year to VND37 billion.

According to the Ministry of Agriculture and Rural Development (MARD), 225,000 tonnes of rubber was exported in November 2019, worth $293 million.

After 11 months, total rubber export volume was estimated at 1.53 million tonnes, worth VND2.06 billion.

The 11-month export figures could be up 9.9 per cent on-year in volume and 9.3 per cent on-year in value.

In global trading, the rubber price on the Tokyo Commodities Exchange gained 0.60 per cent to trade at 202.20 yen ($1.84) per kilo on Friday.

Rubber price has soared a total of 30 per cent since early October.

According to MARD, expectations for a trade truce between the US and China to boost the global economy helped spur the surge.

While global rubber production is forecast to decline by 800,000 tonnes in 2019, Viet Nam’s exports look set to see increases in most major markets such as India (up 34.7 per cent), South Korea (up 28.7 per cent) and Brazil (up 25.5 per cent).

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DPR 40,500 0 %
MH3 34,900 800 +2.35%
PHR 40,150 50 +0.12%

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