Private business conglomerate Vingroup is seeking shareholders’ approval for targets of 34% and 50% increases in revenue and net profit, respectively, this year.
In the documents sent to shareholders prior to its annual shareholders meeting, expected on May 31 in Hanoi, the board set a total revenue target of VND120 trillion (US$5.3 billion) for the year, and a net profit of VND8.5 trillion. VietnamNews reported
In the first quarter, the company earned VND29.1 trillion in revenue and over VND1 trillion in net profit, up 84 per cent and 70% year-on-year, respectively.
Despite the news, Vingroup’s stock declined by nearly 7 % yesterday to close at VND114,400 ($5.02) per share on the Ho Chi Minh City Stock Exchange.
Big dividend plan
Vingroup is also planning a big dividend with a total rate of 21%, of which a 10% will be paid by stocks for 2017’s business results and another 11% will be paid in cash, being extracted from accumulative net profits as of the end of the first quarter of 2018. Total payment value will be more than VND5.54 trillion, expected to be paid in the second quarter of 2018.
In addition, the board of directors will also present to the shareholders a plan to lift the foreign ownership limit to 49% after removing some divisions of the company.
Shareholders will authorise the board to review and make a list of restricted business lines, as well as carry out the necessary procedures to change the corporate business registration.
Foreigners currently hold about 10.2% of Vingroup’s capital according to data on the financial website vietstock.vn as of December 31, 2016.
This year, VIC is planning to intensify its operations in all major fields including real estate, travel and entertainment, retail, healthcare, education and agriculture. At the same time, the company will also make further investment in the automobile industry with the ‘Vinfast’ brand.
The company will strengthen its presence in provinces nationwide, especially in the development of Vinmart and Vinmart+ retail chains. Regarding the quality of services, the company is still aiming for international five star standards, upgrading the infrastructure of the Vinpearl entertainment system and the Vinmec hospital system, enhancing the training quality of Vinschool and Vinuni.
In 2017, consolidated revenue of VIC reached VND89.3 trillion, up 55% year-on-year, net profit touched VND5.6 trillion, up 27 % over the previous year. Earning per share (EPS) was VND1,816.