(ĐTCK) Towards sustainable development, CNG Vietnam Joint Stock Company constantly strives to realize the goal of “delivering clean energy to your doorstep”.
CNG Vietnam is known as the first compressed natural gas (CNG) producer and trader in Vietnam, with a strategy of diversifying industries, focusing on CNG, LPG and LNG production, extraction and trading.
CNG Vietnam always strives to disseminate practical benefits from “green fuel” products to the community, contributing to combating climate change, protecting the environment, bringing added values to customers, and contributing to the development of the country.
With projects to provide clean fuel for factories using thermal energy during production and processing in industrial parks and to use it as an alternative fuel source for petroleum in traffic and transportation activities, the company has always been a pioneer and leader in providing CNG products.
According to the strategy of CNG Vietnam, in the period of 2020 – 2021, the Company focuses on developing CNG customers and implementing the product specialization model of PetroVietnam Gas Corporation – JSC, accordingly, the Company is leading the CNG distribution market: in the North, it holds 100% of the market share and in the South, nearly 70% of the market share. In the period of 2022 – 2025, CNG Vietnam will increase the number of customers using LNG.
In 2019, the Company’s CNG consumption volume reached 192.16 million Sm3, an increase of 23%. Accordingly, the Company achieved 2,146.74 billion VND in revenue, 23% higher than the plan.
Accumulatively in the last 5 years from 2015 to 2019, CNG Vietnam achieved a growth rate of 19.5%/year in CNG consumption volume, 27%/year growth in revenue.
The Company have realized the profit plans, completed and exceeded the targets for many years. For example, in 2017, CNG Vietnam completed 135.2% of the plan, in 2018 completed 121.2% of the plan, and in 2019 completed 100% of the profit plan.
In the first 9 months of 2020, the economy faced many difficulties and challenges due to Covid-19 epidemic, but CNG Vietnam’s business continued to grow, recording a revenue of 1,656.9 billion VND, up 2.2% over the same period.
With the largest market share of compressed natural gas distribution in the country, CNG Vietnam’s operating cash flow is always positive and stable.
In 2016, positive cash flow was 181.4 billion VND, in 2017 it was 165.3 billion VND, in 2018 it was 138.8 billion VND, in 2019 it was 98.3 billion VND and the first 9 months of 2020 was 84.4 billion VND. The company uses this cash flow to expand its business activities, bring profits, and accumulate a large amount of cash.
As of September 30, 2020, CNG Vietnam has 434.8 billion VND in cash and cash equivalents, accounting for 41% of total assets.
The large amount of cash as well as stable operating cash flow from gas distribution ensure a high dividend policy. The dividend payout ratio in 2017 is 15%, in 2018 it is 25%, in 2019 it is 25% and in 2020 is expected to maintain 25%. Meanwhile, interest rates in the market since the beginning of the year have tended to decrease.
This year, the Covid-19 pandemic raged across the globe, many countries had to implement monetary easing and demand stimulus policies to support the economy to overcome the crisis.
In the context that Covid-19 is still having complicated developments, with the second and third outbreaks in some countries, many organizations predict that the low interest rate level may last until the end of 2022.
With a low interest rate scenario, investors tend to look to investment channels that offer higher profit opportunities, especially stocks. On the stock exchange, CNG shares have recently been popularly traded in the price range of 19,000 – 20,000 VND/share, corresponding to a dividend yield of 12.5 – 13.2%/year, much more attractive than bank deposit interest rate.
CNG stock is recognized as one of the stocks of companies with stable operation, steady cash flow, little or no debt, especially high dividend yield, suitable for long-term holding, in line with value investing as well as growth investment strategies.
(Author: Thu Hang / Special Journal of Listed Enterprises 2020, Reference source: https://tinnhanhchungkhoan.vn)