A stock that is cheaper than an ice cream cone with a dividend of 16% but no one buys or sells it for a whole month?
Hai Phong Funeral Service Joint Stock Company (UPCoM: CPH), a special unit, is the only funeral service company listed on the stock exchange. As of this morning of March 22, the shares are being traded at 1,900 dong/share, 5 times lower than the par value of 10,000 dong. This market price is cheaper than ice cream cones sold at fast food stores, about 5,000 VND/piece.
Based on historical transaction data, from February 7 to March 21, which is more than a month, Hai Phong Funeral Service did not have any transactions during this period. The market price remained stationary at 1,900 dong/share. The market capitalization is also unchanged, just over 8.3 billion dong.
Meanwhile, according to the 2021 annual report, Hai Phong Funeral Services has quite optimistic business indicators. Asset value is more than 136 billion, up 21.46%. Revenue increased by 6.44% to VND 117 billion. Implementation in 2021 has exceeded the set plan. Profit after tax even exceeded 106% of the plan.
Hai Phong Funeral Service maintains a high dividend payment regime for shareholders. In 2020, pay 16.4% rate and in 2021 pay 16.4% dividend to shareholders. The P/E ratio is maintaining below 1 when the market capitalization is just over 8 billion dong.
Positive, but why is Hai Phong Funeral Service rare to buy and sell?
More than 3 years on the floor, the company has almost no transactions. Dividend payment rate is more than 15%/par value, some years more than 16-17%.
Despite such a positive situation, due to the shareholder structure, the equitization does not have regular transactions. Specifically, according to the 2021 annual report, Hai Phong City People’s Committee owns 64.5% of the equitized charter capital, 10% belongs to Hoang Phat Trading and Construction Investment Company Limited.
Chairman of the Board of Directors Nguyen Hong Le owns 5.33%, General Director Pham Xuan Thu holds 0.55%, Ms. Bui Thi Tuan (2.36%), Deputy General Director Vu Van Phong (1.24%).
Since converting the model from a limited liability company (June 2, 2015) to the present Hai Phong Funeral Service Joint Stock Company, the equitization has not changed its charter capital and remained at VND44 billion.
CPH admits that the company is operating in a “special and sensitive industry”. Photo: CPH.
In the report, CPH sets a goal in 2022 to continue to build and maintain its brand, promote business activities, create jobs and incomes for employees, ensure legal rights for shareholders, and fulfill obligations to the state.
Expanding and synchronously developing the fields of burial, cremation, re-creation, trading in high-end goods associated with the transformation of a stable and sustainable growth model in the following direction, ensuring quality and improving efficiency efficiency and competitiveness of the cremation sector.
CPH admits that the company is doing business in a “special and sensitive industry”, which is heavily influenced by the customs and practices of the regions. The company must try to adapt to that difference.
In the 2022 plan, net revenue will reach 110 billion dong, profit after corporate income tax is nearly 9 billion dong. These two targets are slightly reduced compared to the implementation in 2021. To achieve the target for the year, the company orients to expand supply and sales, strengthen propaganda and promotion of cremation activities in suburban districts. .
The remuneration of the Chairman of the Board of Directors, the General Director of Hai Phong Funeral Service is 791 and 533 million VND/year, respectively.
Business and Marketing
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
