Duc Giang Chemical raises profit target by nearly 40% this year

A worker operating equipment inside a Duc Giang Chemical plant in Hung Yen Province. — Photo ducgiangchem.vn

In its recently released document for the 2022 Annual General Meeting of Shareholders, Duc Giang Chemical Group JSC (DGC) said that despite the complexity of the COVID-19 pandemic in 2021, the company’s business results still improved.

Last year, its consolidated revenue reached VND9.55 trillion (US$418 million), up 53 per cent year-on-year. This led to an increase of 165 per cent in consolidated profit after tax to over VND2.5 trillion, which exceeded 128 per cent of the whole year plan set by the General Meeting of Shareholders.

Duc Giang Chemical’s executive board said that the positive business results were thanks to its strategy in keeping operation at full capacity and cutting input costs. In addition, the world market has witnessed changes in favour of the company’s products.

It will propose to the General Meeting of Shareholders to pay 2021’s dividends at the rate of 127 per cent, including 10 per cent in cash dividend, which was paid in advance, and stock dividend at the rate of 117 per cent. Duc Giang Chemical will issue an additional 200.16 million shares to pay dividends.

In 2022, the company plans to increase total revenue by 26 per cent compared to 2021 to more than VND12.1 trillion, with profit before tax of VND3.5 trillion, up 39 per cent. It plans to pay a dividend of 30 per cent in 2022.

Duc Giang Chemical is focusing on the Duc Giang - Nghi Son project that is expected to start in the third quarter of this year. It conducted an extraordinary General Meeting of Shareholders in December 2021 to increase the total investment to VND10 trillion.

While its apartment project is waiting for a new policy, this year the company continues to implement solid waste treatment and joint ventures to exploit new mines.

It also submitted a proposal to approve the plan to issue 8.55 million employee stock ownership plans (ESOPs), accounting for 5 per cent of the outstanding shares at the price of VND10,000 a share.

The price is much lower than the market price of DGC shares on March 7 which was VND189,900 per share.

These shares will be offered to its employees and its subsidiaries and will be subject to a three-year transfer restriction. The release date is also this year. — VNS