The company that produces votive paper on the stock exchange earns more than 6 billion dong in profit every month

On the stock exchange, it is not difficult to name the main business lines of prominent stocks such as: Banking, Securities, Real Estate, Retail, Technology… However, there are still businesses. has a unique and strange business line that always attracts a certain amount of attention from investors.

Mentioned Yen Bai Forestry and Food Products Joint Stock Company (HNX: CAP .)), few people can think that this is a rare enterprise on the stock exchange doing business in selling paper and votive paper. CAP is known as the largest votive-making enterprise in Yen Bai province and directly manufactures items for export to Taiwan and China markets.

The company specializes in processing, processing and trading forest products; agricultural products and foodstuffs; import and export business of spare parts, materials, equipment, general goods. In addition to votive paper, CAP also has paper products such as base paper, pear paper, chipboard; there are also tapioca starch and cinnamon essential oil; in which tapioca is still the product that brings in the majority of revenue for the Company.

‘Chicken that lays golden eggs’, CAP earns a net profit of more than 6 billion dong every month

Yen Bai Forestry Products Joint Stock Company, formerly known as Yen Bai Paper Factory, was established in 1972. In 2004, the company was officially equitized and changed its name to Yen Bai Forestry and Foodstuff Joint Stock Company. The company has the advantage of headquarters and factories located right in the area with abundant raw materials for the production and processing of forest and agricultural products.

Reviewing the fiscal year 2020-2021, CAP revenue reached VND 518 billion, up 38%. Profit after tax reached 57 billion dong, a strong growth of 90% over the same period. During the year, the company renovated the machinery and equipment system of Van Yen Cassava Factory. Along with the plan to expand the production of votive paper for export at 02 processing factories, it has brought about an increase in revenue.

Regarding production and business activities, in the second quarter alone (January 1 – March 31, fiscal year 2021-2022), CAP’s net revenue reached nearly VND 100 billion. Excluding expenses incurred, Yen Bai Forestry Products and Foodstuffs reported a profit after tax of 21 billion dong, up 51% over the same period last year.

In the 6 months of fiscal year 2021-2022 (October 1, March 31, 2022), net revenue from sales and service provision reached VND 264 billion, flat compared to the same period last year. After deducting expenses, CAP reported a profit of nearly 38 billion dong, up 26% over the same period.

In terms of the proportion of each item, tapioca is still the item that brings in the majority of revenue with VND 149 billion, accounting for about 56% of total revenue. Next is the base paper with 104 billion VND in revenue. As for votive paper products, which are mentioned a lot, the accumulated revenue of this segment in the first 6 months of the fiscal year 2021-2022 reached VND 88 billion, contributing 33% to revenue.

In the year 2021-2022 plan, CAP targets total revenue of 520 billion VND, profit after tax of at least 37 billion VND. Thus, after only 6 months, CAP has completed 51% of revenue target and 103% of profit after tax target.

Yen Bai Agro-Food Products has completed its profit target for the whole year after only the first 6 months of operation. On average, this business collects 44 billion dong per month and records more than 6 billion dong in profit.

At the end of March 2022, CAP’s total assets were worth VND 287 billion, an increase of 88% compared to the beginning of the year. In which, inventories increased sharply, nearly 13 times higher than at the beginning of the period, reaching a value of VND 194 billion, accounting for 68% of total assets.

High and regular dividends over the years

Yen Bai Forestry and Food Products are also noticed when maintaining a policy of paying high dividends to shareholders. Specifically, in 2015, the enterprise paid a cash dividend at the rate of 45% and stock bonus at the rate of 40%. In recent years, CAP’s dividend rates have fluctuated from 30% to 45% and are all in cash.

On May 10, Yen Bai Agricultural Products and Foodstuffs closed the list of shareholders paying dividends for the fiscal year 2020-2021 in cash at the rate of 50%. Payment period 10/7/2022. In addition, Yen Bai Agro-Food Products will also close the list of shareholders to issue nearly 2.62 million shares to pay dividends for the fiscal year 2020-2021 to shareholders at the rate of 50%, shareholders owning 10 shares are entitled to receive dividends. received 5 new shares. Thus, Yen Bai Agro-Food Products will pay dividends in cash and shares for the year 2020-2021 at the rate of 100% to shareholders.

Internally, the company enlisted to collect more shares

In the context of market correction, the CAP market price was “softer”, internally the company took advantage of the opportunity to collect more shares. Most recently, Mr. Truong Ngoc Bien – Chairman of the Board of Directors of CAP bought 19,000 shares.

Before Mr. Bien, Mr. Nguyen Van Tru – Deputy Director also registered to buy 2,000 shares of CAP and Mr. Nguyen Thanh Son – Chief Accountant also successfully bought 3,400 shares.

With stable business results, CAP is one of the stocks that have increased sustainably for many years. Currently, CAP price is hovering around the threshold of VND 100,000/share, 3 times higher than in the first half of 2021.

According to CafeF