Do not expect great in the domestic marketSharing about the domestic market development plan, Mr. Ho Xuan Nang, Chairman of Vicostone Board of Directors, said that with the market of nearly 100 million people, if not, it is flawed, but the disadvantage is that cheap alternative materials in Vietnam is very much, the economic level of the people is not high. Therefore, the company aims to increase revenue in this market but does not expect much, reaching 10-30 million USD is successful. In 2020, Vicostone recorded domestic revenue of 1,869 billion VND, an increase of nearly 40% compared to 2019. The contribution of the domestic market to total revenue is 33%, higher than 24% in 2019. Regarding the shareholders that think the business plan this year is too cautious, Mr. Nang said the basis of setting goals is based on market research and from forecasting experience from previous years to come up with a feasible scenario. Best. With the most positive scenario, the company can grow up to 30%. Regarding the proposal to increase the dividend payment rate by 20-30%, Chairman Ho Xuan Nang said that since 2016, Vicostone has spent about 3,700 billion dong to pay dividends to shareholders, buy treasury shares and then divide back to shareholders. This figure has been detailed in the annual report, equivalent to more than 600 billion in cash fund each year for dividend payment.
“Vicostone’s profit margin makes many companies around the world crave”At the meeting, shareholders questioned the management of inventories and receivables because these two indicators have faster growth rate than revenue and profit. Answering questions of shareholders, Mr. Nang said this was not a big problem with Vicostone. “I do not think that the company’s inventories and receivables have increased rapidly, this level has been maintained for the past 6-7 years. Vicostone accepts large inventories for fast delivery, while large receivables in exchange for work. Shareholders should be assured because this number is safe in business. Our margin makes many companies all over the world crave. Regarding the impact of freight rates on the company’s profit margin, Mr. Nang said that most of the goods are delivered on FOB basis, so the freight costs are borne by customers. In the case of customer difficulties, the increased transportation costs lead to unsold goods, which will affect the company’s revenue. However, up to now, the tariff has no effect on Vicostone. For the intention to change the floor to HOSE, Vicostone Chairman said that the procedures had been completed, but the market was congested, so the management decided to pause.
“The company will change the floor first after what, but this is not a reasonable time. The specific time to change the floor will depend on the information infrastructure of the Exchange”.
Source: vietnambiz.vn – Translated by fintel.vn