Hue Textile and Garment JSC envisages a 60 per cent dividend payment for shareholders

With a swift production rebound in 2021, the textile and apparel sector closed the year with an export value exceeding $39 billion, showing more than a 10 per cent jump on-year.

Many firms in the sector, therefore, outperformed their production and business targets and decided to offer shareholders high payout ratios ranging from 30-60 per cent.

With 2021 revenue touching $21.63 million and pre-tax profit reaching $2.18 million (equal to 236 per cent of the projection), the leadership at Vinatex Phu Hung JSC has decided upon a 50 per cent payout ratio to their shareholders in which 30 per cent will come as stocks and 20 per cent in cash.

At the company’s 2022 annual general shareholders' meeting (AGM) held recently, its leaders said that after its fibre plant 2 was put into operation, helping to double its production capacity with more than 44,000 spindles, the company’s revenue and profit figures posted a sharp jump, turning Vinatex Phu Hung from a small- to a medium-size firm in the spinning industry.

Similarly, Hue Textile Garment JSC wrapped up 2021 with rosy business figures.

The company’s total revenue hit $81.9 million, up 32.3 per cent on-year, and pretax profit climbed to $6.13 million, equal to 568 per cent of the set target.

The company then offered shareholders a payout ratio amounting to 60 per cent, with 15 per cent in cash, and 45 per cent in stocks.

At the company’s recent 2022 AGM, the meeting approved the plan on stock issuance to pay 2021’s 45 per cent dividends for shareholders using undistributed profit sources.

After stock issuance, the company’s charter capital rose from $4.56 million to $6.61 million.

“This year, our business aims to reach $8.08 million in revenue, $5.21 million in pretax profit, with a 30 per cent payout,” said Nguyen Van Phong, the company’s general director.

With a complete supply chain from fibre to apparel, the company can satisfy demanding customer requirements, as well as accomplish export processing orders for the apparel sector.

Last year was deemed a bonanza for the spinning sector, as most firms had cashed in on rising order intake and soaring export prices.

Phu Bai Spinning JSC just unveiled its 2021 business results at its recent AGM, in which the company eyed a 41 per cent jump in its revenue to reach $43.47 million, and a $4.64 million in pretax profit, a 10-fold increase over the projection.

The AGM approved a dividend payment of 30 per cent, with 20 per cent in cash and 10 per cent in stocks.

According to Cao Huu Hieu, the company’s chairman and general director of state-owned conglomerate Vinatex, the company aims to reach revenues of $108.69 million from 2022 to 2027, which is expected to be doubled reaching $217.4 million by 2030.

According to the Vietnam Textile and Apparel Association's forecast, this year the textile and clothing sector would reap $42-43.5 billion in total export value.

Last year, the sector raked in $39 billion in total export value, equal to 2019.