FLC Faros Construction Joint Stock Company (ROS) expects to beat its 2017 profit target soon and will pay a dividend rate of 10-12 per cent for this year, the company has announced.
At this rate, the company is forecast to spend about VND473-568 billion (US$21-25 million) for the dividend payout on a total 473 million outstanding shares in the market.
ROS posted an after-tax profit of VND208 billion ($9.2 million) in the nine months through September, approximately 36 per cent of its yearly target of VND580 billion ($25.6 million).
However, the company’s CEO Do Quang Lam said the accounting of revenue and profit of a construction company can be irregular and depends on the implementation process of individual projects.
With the breakthroughs ROS has made in Engineering Procurement Construction (EPC) activities and its newly begun projects, the executive believes the company will meet its profit target ahead of schedule.
The value of contracts and projects that the company has signed and carried out has reached VND20.1 trillion, including large-scale deals such as the Quang Binh golf, villa and high-end entertainment project worth VND5.6 trillion and the second phase of the FLC Vinh Phuc project worth VND1.4 trillion.
It expects to record combined revenue of VND3.5 trillion from 12 major projects. It is also speeding up the implementation for handover in the 2017-18 period at a wide range of projects such as FLC Garden City, FLC Twin Towers and FLC Ha Long complex.
Heavyweight on the VN-Index
The price of ROS shares has more than doubled this year, rising from VND104,000 per share to over VND214,000 each. It has become one of the top three most expensive stocks on the HCM Stock Exchange in over one year since its debut on September 1, 2016.
Together with brewer Sabeco (SAB), ROS is seen as the main push behind the expansion by 27 per cent of the benchmark VN-Index since the beginning of this year.
ROS and SAB are two of the top 10 biggest stocks by market value on the HCM Stock Exchange and their movements heavily influence the index.
According to SSI Research, the growth of these two stocks accounted for over 50 per cent of the VN-Index’s gains. Without the two stocks, the VN-Index may have increased by only 11.8 per cent.
According to analysts, the large impact of the two stocks on the market may affect investors’ evaluation about the overall market outlook. – VNS