It is expected that on March 30th, the Dak Lak Rubber Investment Joint Stock Company (stock code DRI) will hold its Annual General Meeting of Shareholders. The shareholder list has been finalized on March 10, 2020.
Business Results
2019 marked the second consecutive difficult year for the rubber industry in general and Dak Lak Rubber Joint Stock Company due to oversupply, the impact of the trade war between the US and China, slowing global economic growth, fluctuations in oil prices, monetary policies of the US and China, etc., negatively affecting rubber prices.
Specifically, in 2019, DRI exploited 15,403 tons of rubber, completing 86% of the set plan. They harvested 195.5 tons of fresh cashews, achieving 96% of the plan, and harvested nearly 2,253 tons of bananas, reaching 45.5% of the plan.
Total revenue recorded VND 539 billion, up 5% over the same period and completing 91% of the plan. Revenue did not meet expectations due to a 9.2% decrease in sales volume compared to the plan due to not meeting production targets (selling nearly 17,476 tons/19,247 tons of the plan), although the selling price was higher than the planned price at USD 77.72/ton (USD 1,317.72/ton compared to USD 1,240/ton). Conversely, pre-tax profit in 2019 decreased by 11%, down to VND 55 billion, but still exceeded the annual plan by 12.5%.
The DRI Board of Directors also presented to the General Meeting of Shareholders the plan for profit distribution and establishment of funds for 2019. Specifically, DRI will allocate nearly VND 7 billion to the development investment fund and VND 4 billion to the reward welfare fund. DRI's dividend rate decreased from 5% to 4% due to the Company's profit not meeting expectations.
Business Plan for 2024
In 2020, DRI plans total revenue of nearly VND 525 billion, a slight decrease of 1% compared to the previous year. The Company estimates rubber consumption in 2020 to reach 16,024 tons, with the selling price of raw rubber nearing VND 31 million/ton, 213 tons of fresh cashews at a selling price of nearly VND 28 million/ton, and 4,590 tons of bananas at an average selling price of over VND 6 million/ton. The pre-tax profit target is also reduced by 38% compared to 2019, estimated to reach over VND 34 billion.
In addition, DRI plans to invest nearly VND 16 billion in agriculture and over VND 30 billion in basic construction. Specifically, DRI will invest nearly VND 10 billion in the banana project and nearly VND 15 billion in its subsidiary, DakLak Rubber Company Limited (Daklaoruco).
Moreover, the DRI Board of Directors also presented to the General Meeting of Shareholders the proposal to continue registering the Company's shares on the Ho Chi Minh City Stock Exchange in 2020-2021 when conditions are met.
On the DRI stock market, it has declined to its lowest price in 3 years at VND 4,000/share - halved compared to the closing price of the first trading session in mid-2017 and decreased by only 1/3 compared to the peak at the end of August 2017.
