Great benefits for investors and shareholders from Phat Dat’s shares in 2021
Respect for commitments with shareholders and investors, which attempts to fulfill commitments in all cooperative relationships at its best, is one of the key business characteristics of Phat Dat (Stock code: PDR).
At the 2021 annual general meeting of shareholders, Phat Dat decisively approved the third dividend payment (the final dividend) of 2020 at the rate of 11.7% in shares, resulting in the total 3-time share dividends for 2020 at 28.7%. This is a strong affirmation of the benefits from dividends for PDR’s shareholders and investors.
Dividends have been made regularly and continuously, bringing the total dividend ratio up to 53.7% since 2019
In 2020, Phat Dat made 3 share dividend payments to shareholders: 7%, 10%, and 11.7% for the last payment expectedly made in the middle of Q2/2021. Previously, tapping 2019’s profit, Phat Dat paid two dividends, including 12% in cash and 13% in shares.
Distributing 2020’s profit by stock dividends enables outstanding benefits to shareholders and investors, which shows the BOD and BOM’s great determination for the sake of Phat Dat’s investors and shareholders.
Comparison between values of cash and stock dividends, assuming shareholders hold shares for a long term – Source: PDR.
Thus, by way of share dividends, shareholders and investors will receive benefits such as:
First, compared to cash dividends, the total value of 2020’s share dividends (return on investment) would be over 7 times higher if the shareholder held shares during all 3 dividends to the end of May 2021 and 5.7 times higher if the shareholder sold shares right after the payment date. In this way, shareholders and investors can accumulate assets faster in the current context where the company made such strong growth and development.
As of April 6th, 2021, PDR’s share price is VND 67,800 per share. According to SSI’s assessments on investment and valuation, “SSI produces recommendations by applying RNAV method, and PDR’s RNAV is 4% higher than the current share price. Presently, PDR is trading with 2021’s P/E and P/B of 12.4x and 3.8x, respectively.”
Simultaneously, PDR’s share price has been increased by 138% compared to 2019 and is expected to continue to grow in the coming time, making it an even greater extent of benefits to investors and shareholders.
Second, the average time shareholders receive additional shares is only 1 month (compared to the market average of at least 2-3 months) thanks to the Company’s synchronous process to create favorable conditions crediting shares on investors’ accounts.
Finally, PDR’s liquidity on the market is considerably high, especially after PDR entering the VN30 basket.
History of dividend payment rate from 2015 to 2020, Source: PDR
In the 2015 – 2020 period, Phat Dat achieved a high growth rate in terms of business results, sustainable financial structure, and improved profitability, resulting in the net revenue increased by 8.8 times (a CAGR of 54%) and PAT of the parent company’s shareholders increased by 7.6 times (a CAGR of 50%).
Therefore, the company possesses a stable cash flow to pay cash/share dividends to shareholders regularly at a rate ranging from 20-30% per year from the distribution of profit after tax.
Thus, with the upcoming 11.7% share dividend, PDR wishes to constantly increase benefits and surplus value for shareholders and investors in the future.