A plastic business pays dividends of 350%

Each TTP share of Tan Tien Packaging helps shareholders receive 35,000 VND in cash dividends, a record high in the company’s history.

According to a recent resolution, the Board of Directors of Tan Tien Packaging Joint Stock Company (Tapack – TTP) approved the payment of 2023 dividends in cash. The payout ratio is 350%, meaning each share will receive 35,000 VND. This is a record level in the history of business operations. The dividend payment rate in 2023 also increased dramatically when in the previous three years, TTP gave the figure of 15%.

Implementation time is at the end of June. With more than 13.5 outstanding shares, Tapack will spend more than 473 billion VND for dividend distribution. Major shareholder Dongwon Systems holds 97.83% so can receive nearly 463 billion VND.

Shareholders of TTP received good news after this business reported record profits. In 2023, although revenue will decrease by 10% to about 1,734 billion VND, profit after tax will increase by 233% to nearly 153 billion VND. The management board said that the company suffered from competition from competitors and the impact of a difficult economy, so revenue decreased. However, they have reduced production costs and controlled waste, so profits have grown strongly.

Tapack is one of the businesses that regularly distributes profits to shareholders in “real money”. From 2006 until now, there has never been a year when the Board of Directors has forgotten to pay cash dividends. Previously, the rate they offered was usually around 2-5%.

Tan Tien Packaging, formerly known as Vietnam Plastics Company (Simiplast), is the first soft plastic packaging manufacturer in the country. In October 2015, this business joined Dongwon Systems – Korea’s leading corporation in the field of packaging materials.

Tapack’s customers are big names such as Unilever Vietnam, Pepsico, Ajinomoto, Vedan, Acecook, Trung Nguyen, Kinh Do, Vinamilk… This year, the company plans to achieve 1,944 billion VND in revenue and pre-profit. 223 billion VND in tax, an increase of 12% and 14% respectively compared to the previous year. Accordingly, the expected dividend rate is 15%.

On the stock market, TTP shares have had a long period of quiet trading since the end of last year. From April until now, the market price of this code has entered a strong growth rhythm. Closing the session on May 15, TTP jumped to the ceiling price of 124,000 VND per unit, an increase of 2.2 times compared to the beginning of the year. However, because the shareholder structure is quite concentrated, this stock is often “white” on the selling side.

By Editor

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