Blue chip firms offer attractive dividend payouts

If there are no sudden shocks to its business, Minh Phu Seafood Corporation (MPC) could post pre-tax profits of more than VND1 trillion ($47.6 million) this year.

In the first half of this year, the company reported at least VND500 billion ($23.8 million) in pre-tax profits. The company’s first-half business results are being checked by auditors to determine an exact figure.

MPC’s pre-tax profits for the first half may have even been as high as VND600 billion ($28.5 million) for the first six months, if the central bank’s decision to hike the dong-dollar exchange rate by 1 per cent in the early second quarter was not taken into account.

Its solid performance in the first half was behind MPC’s idea to offer 50 per cent cash dividends in the year’s first half.

If the dividend payout proposal is approved at MPC’s shareholder meeting, the company would need to set aside around VND345 billion ($16.4 million) to arrange payment.

The price of shrimp in the world market has risen sharply since late June, a major advantage to MPC, which is Vietnam’s leading shrimp exporter.

The export price of shrimp is now more than 20 per cent higher than it was in late May, and MPC made major purchases before the price rise that elevated its stockpiles to 12,500 tonnes by late June.

Another major listed firm, Vingroup, recently announced it would be paying shareholders a 21.49 per cent cash dividend that would come to around VND2 trillion ($95 million), on the back of its strong business development.

This amount is to come from the group’s 2013 cumulative post-tax profit.

According to a recent forecast by Vietcombank Securities, this year Vingroup’s after-tax profit could reach VND4.7 trillion ($226.7 million), well over its expectations.

Earlier, local leading dairy product company Vinamilk reported it had advanced first-round dividends for 2014 at 20 per cent, coming to VND1.660 trillion ($79 million) in total payouts.

According to Bao Viet Securities, Vinamilk (VNM) posted an estimated VND9.191 trillion ($437 million) in revenue and VND1.617 trillion ($77 million) in post-tax profits in this year’s second quarter.

The company’s cumulative post-tax profits for the first half of this year were VND3 trillion ($140 million), coming to about half of the whole-year target.

VNM is envisaging paying out dividends of not less than 50 per cent of the company’s full-year post-tax profits. The shareholders, thereby, would expect another round of dividend payments this year.