Phat Dat (PDR) strong recovery: shareholders to wait 5 years for cash dividends?

Over the past two years, Phat Dat shareholders (ticker PDR (HM:)) have not received any dividends. By 2024, six projects eligible to be put on the market are expected to bring revenue of more than 40 trillion VND to the People’s Democratic Republic. So, when will shareholders get cash dividends again? As shared at the 2023 Annual General Meeting, at the end of December, the leadership of Phat Dat Real Estate Development Joint Stock Company (symbol PDR – HoSE) fulfilled its promise to shareholders – the complete settlement of outstanding bonds. Two tranches of bonds (with a total value of VND800 billion) were redeemed a few days ago.

This means that Phat Dat is gradually returning to a stable business trajectory as cash flows in, licensed projects continue to open and it is no longer under bond pressure.

In the first nine months of 2023, Chairman Nguyen Wen Da’s business revenue reached 550 billion VND; after-tax profit reached 400 billion VND, a year-on-year decrease of 63% and 72% respectively. The net profit margin reached nearly 73%. The highlight is that the company’s business cash flow turned from negative 1,758 billion VND in the same period last year to positive 406 billion VND.

Phat Dat plans to launch 6 projects (VND 40 trillion) into the market in 2024

As of the end of the third quarter of 2023, Phat Dat Real Estate’s short-term assets were VND 16,504 billion, of which inventory was recorded at VND 12,157 billion (accounting for nearly 60% of the company’s total assets). The inventory is recorded in 12 projects across the city. Ho Chi Minh City, Ba Ria City – Vung Tau City, Binh Duong City. Da Nang, Kien Giang, Binh Dinh…

The projects that “consume” the most resources are: EverRich 2 project (over VND3,597 billion); Binh Duong Tower project (VND2,378 billion); Tropicana Ben Thanh – Long Hai project (VND1,993 billion) and Phuoc Hai project at VND1,525 billion Vietnamese dong.

According to Phat Dat, real estate inventory mainly consists of compensated land funds, land use fees paid to the state, site leveling fees, construction costs and investment costs, etc., invested in real estate projects.

Among the inventory items, there are still 2 items in the process of handover.

Specifically, for The EverRich 2 project, Phat Dat said that according to the investment cooperation contract signed with Big Gain Investment Co., Ltd., etc., the project is being completed and is eligible to transfer the remaining part. About VND877 billion has been invested in the EverRich 3 Phat Dat project.

The above transfer plan, once completed, is expected to help Phat Dat significantly improve its business parameters in the near future.

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Recently, when asked about plans and goals for 2024, PDR general manager Bui Quang Anh Vu said that Phat Dat currently has at least 6 projects that meet the best conditions to be launched on the market, with total revenue expected to exceed 40 trillion US dollars. Vietnamese dong. The main products are apartments and land (in addition to tourism real estate products).

Mr. Vu also said that these projects are located in fast-growing urban areas or areas with high potential such as Binh Duong, Binh Dinh and Da Nang, which are very suitable for demand and sales customer strength.

“Phat Dat is currently only focused on developing projects that suit the actual needs of its customers to achieve the highest level of market uptake,” Mr. Vu shared.

What has Phat Dat done and failed to do for shareholders?

While adhering to the commitment to pay off all bond debts, the strong recovery of PDR shares from the bottom in November 2022 (more than 150%) is also a “gratitude” gift to nearly 27,000 shareholders; especially those who participated in the rescue of the price floor more than a year ago shareholders.

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Now all that’s left is the dividend. Since April 2022 to date, Phat Dat shareholders have not received any additional dividends. According to the minutes of the 2023 Annual General Meeting of Shareholders, the company agreed not to pay dividends in 2022.

Meanwhile, dividends in 2023 are expected to be at least 15% of the stock. The source of funds for this year is the accumulated after-tax profit as of December 31, 2023. This means that PDR shareholders will need to wait at least a few months after the company releases its fourth-quarter financial statements and fiscal 2023 audit report.

Many Phat Dat Real Estate shareholders are even expecting the company to pay dividends in cash at this point – something it has not done since the first payment in 2019 with a 12% upfront payment (paid in early January 2020).

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If there are no surprises in the policy of paying benefits to shareholders in 2024, nearly 27,000 PDR stock investors will have to wait until the 2025 annual shareholder meeting to know whether the company will finalize a plan to pay cash dividends in 2024. no.

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