AsemconnectVietnam - Dong Nai Water Supply Joint Stock Company (UPCoM: DNW) has just announced documents for the 2025 Annual General Meeting of Shareholders (AGM), proposing a cautious business plan with a profit target that is expected to decrease sharply compared to previous years.

Specifically, DNW sets a revenue target of VND1,190 billion, down 7% compared to 2024, while after-tax profit is expected to reach VND270 billion, 22% lower than the VND345 billion achieved last year. This is the lowest profit level that DNW has achieved since 2021, when the company has always maintained a profit of over VND300 billion per year.
According to DNW, the main reason for the decline in profit plan is due to a number of objective and subjective factors, including high input costs when raw material prices, electricity and operating costs increase significantly, affecting the company's profit margin.
The company is also in the process of working with management agencies to get approval for the water price plan according to Circular 44/2021/TT-BTC dated June 18, 2021 of the Ministry of Finance. In addition, DNW is implementing the digitalization process in management and production activities, which requires large capital in the initial stage.
In addition to the business plan, DNW also sets out a number of key tasks for 2025, including automating production, gradually modernizing the water supply system, improving labor productivity and optimizing operating costs. The company focuses on developing new customers in potential areas such as Trang Bom, Long Thanh, Vinh Cuu and Xuan Loc.
Regarding long-term orientation, DNW has announced its business plan for the period 2025-2029, in which in 2026, revenue is expected to increase slightly to VND1,218 billion, profit reaching VND274 billion (+2%). By 2029, revenue could reach VND1,335 billion, profit after tax nearly VND297 billion.
Regarding dividend policy, DNW plans to pay 16% for 2024 and reduce to 14% in 2025. Previously, the Company maintained a stable dividend policy from 2016 - 2023 with a rate ranging from 4 - 16% in cash.
DNW is currently a subsidiary of Industrial Park Development Corporation (Sonadezi, UPCoM: SNZ) with an ownership ratio of nearly 64%. The company was established on March 14, 1977 under the name Dong Nai Water Supply Drilling Company and officially registered to trade shares on UPCoM in 2016. With the water supply industry facing many challenges, DNW is taking cautious steps to maintain stability and sustainable development in the long term.
N.Nga
Source: VITIC/Tinnhanhchungkhoan