Saturday, October 8, 2022 2:23:16 AM - Markets open
VN-INDEX 1,035.91 -38.61/-3.59%
HNX-INDEX 226.09 -9.04/-3.84%
UPCOM-INDEX 79.98 -2.43/-2.95%
Cement company shares skyrocket to historic highs
Vietnam News - 3/29/2022 4:47:34 PM
 (0 ratings. You must sign in to rate.)
 Shares of cement companies are skyrocketing to record highs amid positive market forecasts.
 
Shares of VVMI La Hiên Cement Joint Stock Company (CLH) soared by more than 200 per cent to reach VNĐ39,300 per share in the past year, the highest price recorded so far since its inception on the stock market.
 
Vicem Hải Vân Cement JSC (HVX) witnessed a sharp rise of 99.3 per cent during the past year, from VNĐ4,000 (US$0.17) per share to VNĐ7,970 per share.
 
Hà Tiên 1 Cement (HT1) experienced a significant increase of 45 per cent, from VNĐ17,500 per share to VNĐ25,400 per share.
 
Vicem Bút Sơn Cement JSC (BTS) saw its shares climbing five per cent in the past year.
 
Prosperous earnings
 
Regarding the business results, in 2021, although domestic cement consumption decreased by about five per cent, the cement industry still set a record consumption of 105.6 million tonnes of products.
 
Production output of VVMI La Hiên Cement Joint Stock Company (CLH) increased by thr per cent to nearly 806 million tonnes.
 
Total revenue increased 12 per cent to VNĐ734 billion, of which revenue from the cement segment was almost flat compared to 2020, reaching VNĐ680 billion. Revenue of commercial clinker increased sharply by 117 per cent over the same period of 2020 to more than VNĐ51 billion, exceeding 68 per cent of the yearly plan.
 
Thanks to cost savings, CLH's profit before tax in 2021 reached more than VNĐ68 billion, up 19 per cent compared to the previous year and exceeding 73 per cent of the yearly target.
 
As of December 31, 2021, CLH's total assets reached VNĐ308 billion, a slight increase compared to the beginning of the year, mainly due to the value of production machinery lines. The enterprise had more than VNĐ51 billion of undistributed profit after tax.
 
On April 12, CLH will hold the 2022 Annual General Meeting of Shareholders to summarise the operation results as well as tasks for 2022. According to the company, CLH expects the production and consumption of cement and clinker in 2022 to reach 690,000 tonnes and 50,000 tonnes, respectively.
 
Total revenue in 2022 is expected to reach VNĐ680 billion and profit after tax is estimated at VNĐ56 billion.
 
Regarding the investment plan, the total estimated value in 2022 is forecast at approximately VNĐ17 billion, including VNĐ910 million spent on the renovation of the furnace heat exchanger tower 2 project and preparing the technical report of the 120-tonne weighing station. The rest will be reserved for projects such as electronic weighing stations, upgrading automation system II or purchasing equipment for production.
 
The 2021 dividend payment plan underwent a significant change. Accordingly, although the plan was approved at the beginning of the year at a dividend rate of 15 per cent, the company adjusted the rate to 35 per cent.
 
According to statistics, CLH has had many years of continuous high dividend payments in the cement industry. The company's dividend payment rates in recent years have recorded a regular average of 15 per cent to 17 per cent in cash – a high level compared to the market price of only about VNĐ10,000. Particularly in 2019, CLH paid dividends at a total rate of up to 40 per cent, including 20 per cent ​​in cash and 20 per cent in shares.
 
By 2022, CLH's dividend is expected to remain as high as 25 per cent.
 
Vicem Bút Sơn Cement JSC (BTS) achieved a revenue of VNĐ2.98 billion in 2021, down 2.6 per cent year-on-year. But post-tax profit totaled VNĐ50 billion, a sharp rise of 360 per cent year-on-year.
 
Vicem Hải Vân Cement JSC (HVX) reported revenue at VNĐ678 million in 2021, up 6 per cent year-on-year.
 
In a report earlier this year on the outlook for the cement industry, SSI securities company forecast that domestic demand could return to a normal growth rate of 5 per cent to 7 per cent in 2022 compared to the recovery of civil construction segment and public investment. On the other hand, export growth could slow down due to slowing Chinese demand.
 
SSI Research expects domestic cement production capacity to increase by 10 per cent to 15 per cent. Together with the deceleration of the export channel, this will lead to stronger competition in the domestic market. — VNS
 
Read original article here
 
Newer News
04/10 Rising public investment to lift various stocks
28/09 Shares tumble for second day but slow on falling selling pressure
14/09 Corporate bond market has ample room for improvement
13/09 Delisting poor quality shares helps make market more transparent
09/09 Shares extend losses as major industries lose ground
06/09 Việt Nam one of world's best performing stock markets in August
05/09 Securities companies’ race heats up amid low market liquidity
30/08 Corporate bond issuance declines in the first six months
25/08 Shares rise for second day, propelled by food stocks
23/08 Shares slide on heavy selling force
Older News
21/03 Market continues to recover with VN-Index heading to 1,470 points
11/03 Pharmaceutical stocks remain attractive in 2022 on strong medicine demand
03/03 Real estate, securities markets expected to continue to grow in 2022
02/03 Large-cap recovery boosts VN-Index close to 1,500 points
28/02 Investors show sentimental value in stocks
28/02 Shares to move sideways before returning to uptrend
23/02 Tourism stocks expected to shine in 2022
15/02 Market extends losses on bank stocks, VN-Index loses nearly 30 points
15/02 No more easy money flow and wild expectations in 2022: SGI Capital
10/02 HOSE to put KRX trading system into operation this year
 
Newsletter Signup
Top Stories
Investors warned of the possibility of corporate bond default
Việt Nam retains positive economic outlook in short-term: World Bank
Reference exchange rate up 13 VND on Sept 14
Việt Nam one of world's best performing stock markets in August
Securities companies’ race heats up amid low market liquidity
Market Update
Last updated at 3:05:04 PM
VN-INDEX 1,035.91 -38.61/-3.59%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.