KBC – Driving forward key projects in FY24-25 – AGM Note

We attended KBC’s extraordinary AGM on March 28, 2024 and here are our notes:

Fast-tracking legal procedures for key projects and expanding land bank

The Board of Directors (BOD) of KBC expects to complete and approve legal procedures for key projects from 2Q24, including:

• Trang Due 3 IP
• Loc Giang IP
• Phuc Ninh urban area
• Trang Cat urban area

In addition, KBC is actively implementing legal procedures for new projects in Bac Ninh, Thai Nguyen, Hau Giang, Can Tho and Vung Tau, with a total expected area of up to 4,150 ha.

Targeting to lease 150 ha of industrial land in FY24

KBC projects to lease 150 ha of industrial land in 2024, primarily from the following projects: Nam Son – Hop Linh IP, Quang Chau IP, Tan Phu Trung IP; Industrial clusters in Hung Yen and Long An provinces and especially Trang Due 3 IP. In addition, several urban area (KĐT) projects are expected to generate revenue and profit in 2024.

Regarding the Trang Cat urban area, more than 100 ha has been leveled. The project will be officially announced at the next AGM in June 24.

Canceling cash dividend and share buyback plan to prioritize investment in key projects

In our previous update report, we mentioned KBC’s plan to pay a FY22 cash dividend of VND2,000 per share, with a dividend yield of 6.4%. In addition, on Dec 28, 2022, KBC approved a plan to buy back 100 million shares to reduce charter capital, with a buyback price not exceeding VND34,000/share. However, at this extraordinary general meeting, KBC proposed to cancel these plans and shareholders approved this
proposal.

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