As usual, it is time for each central construction enterprise to announce the details of the 2020 profit dividend:
China Construction
China Construction plans to pay cash dividends to all shareholders for every 10 shares .147 yuan (tax included) , and a total of about 9 billion yuan (tax included) . The proportion of cash dividends to the net profit attributable to the parent company shareholders in the consolidated statement is 0.04% . In terms of proportion, the dividend rate of China Construction is slowly increasing.
China Communications Construction
China Communications Construction achieved operating income of 627.586 billion yuan in 2020, a year-on-year increase of 12.99%; net profit attributable to shareholders of listed companies was 16.206 billion yuan, a year-on-year decrease of 19.02%; China Communications Construction distributed dividends to all common shareholders attributable to common shareholders at least 20% of the net profit attributable to common shareholders in the year, and plans to give RMB 11.8088 (tax included) for every 10 shares, with a total of approximately .924 billion .
China Railway
020 China Railway plans to distribute cash dividends RMB .80 yuan (including tax) , and plan cash dividends .423 billion , an increase of 6.5% year-on-year. The total cash dividends are planned to be distributed to account for 17.5% of the net profit attributable to shareholders of listed companies in the consolidated financial statements that year, and the dividend amount hits a new high.
Check the China Railway Annual Report and found that China Railway plans to achieve a total operating income of approximately 983 billion yuan and a newly signed contract amount of approximately 2640 billion yuan , maintaining a reasonable and moderate growth compared with 2020, demonstrating the determination of the new management of China Railway for the company's future development, and also reflects the firm confidence in the development of the infrastructure industry in 2021.
China Railway Construction
In 2020, China Railway Construction completed the newly signed contract amount, operating income and total profits of 2554.3 billion yuan, 910.3 billion yuan and 31.5 billion yuan respectively, achieving significant growth year-on-year and setting a record high level in history.
China Railway Construction plans to pay cash dividends to all shareholders for every 10 shares .3 yuan (tax included) , and a total of 13.123 billion yuan (tax included) is planned to pay cash dividends to .123 billion yuan (tax included) . In 2020, the proportion of cash dividends to the net profit attributable to common shareholders in the consolidated statement is 5.33% .
China MCC
020 China MCC The new contract amount for the whole year exceeded one trillion yuan. In order to further enhance the company's market competitiveness and sustainable development capabilities, retained income will be used for the company's strategic development and daily operating turnover needs. The cash dividend will be paid for every 10 shares. RMB .75 (tax included) , with a total cash dividend of RMB .554 billion . The total cash dividend proposed by this plan accounts for 9.77% of the net profit attributable to shareholders of listed companies in the consolidated financial statements of China MCC .
From the above table, we can see that China MCC 's annual cash dividend has been growing for 7 consecutive years since 2014, reflecting the ability of China MCC to develop stably and continuously distribute dividends, and demonstrating the attitude of China MCC to return shareholders with operating performance and effectively protect shareholders' investment rights.
China Power Construction
China Power Construction plans to pay a cash dividend for every 10 shares .9264 yuan (tax included) , the estimated dividend amount .403 billion , accounting for 28.45% of the parent company's distributable profit , and 20% of the net profit attributable to shareholders of listed companies in the consolidated financial statements.
Tongge interprets
First popularize several concepts:
1 The cash dividend of stocks, also called dividends/dividends;
Dividend rate = Total dividends/net profit;
Dividend rate = Dividend per share ➗ Current stock price;
1. What does the dividend expression reflect?
From the table above, we can see that the highest cash dividend paid per 10 shares is China Railway Construction , which is 2.3 yuan (tax included) , and the most cash dividend paid in total is China Construction , reaching 9 billion (tax included) . Every time we talk about dividends, many fans will say that this has nothing to do with us, we only care whether our salary and benefits can be improved.
is actually a misunderstanding, because dividend indirectly confirms net profit, and it is also a deep reflection of the company's profitability . Because only companies with abundant cash, stable profits and excellent profits can afford it and divide the cash back to shareholders. Therefore, companies like China Railway Construction , China Communications Construction, China Construction , China Railway, etc., which have good dividends almost every year, are already high-quality enterprises in the construction field .
And behind this is the responsibility and responsibility of a central enterprise, especially under the epidemic, which has assumed the heavy responsibility of stabilizing employment. We often say that state-owned enterprise assets need to be preserved, and for stock investors, their investments also need to be preserved/added. Dividends are the most direct reflection of .
Cash dividend is a dividend distributed to shareholders in the form of cash. From an investor's perspective, the purpose of buying your stock is to get a generous cash dividend. From the perspective of the corporate board of directors, sometimes in order to develop, enterprises need to retain enough cash to purchase equipment, supplement working capital, meet the needs of transformation, etc., so they hope to limit dividends to a lower level. However, the amount of dividends issued by the company directly affects the market price of the company's stocks, and in turn affects the company's ability to raise capital. So this is a contradictory and unified combination. Therefore, the profit distribution plan of each company we are seeing now is a reasonable distribution plan formulated by the board of directors of each company after weighing the trade-offs and severity.
. Why is the distribution profit uneven?
From the above list, we can see that some construction central enterprises allocate more profits than in previous years, and some slightly less than in previous years. In fact, this is very normal. On the one hand, it is due to the impact of the epidemic, and on the other hand, it is related to the characteristics of the industry.
Construction industry is a fully competitive industry, with fierce market competition, low gross profit margin in the industry, high debt-to-asset ratio, large accounts receivable and inventory amounts, many construction projects, wide range, large single volume, and long production cycle, and the funds used to maintain daily operating turnover are relatively large. Therefore, many companies consider the industry characteristics, their own development stages and business models, and the demand for funds to maintain daily operating turnover is large, and they need to accumulate appropriate retained income to solve the capital problems faced during the development process.
plus many companies will adjust retained income based on their own development stage and next development needs. Because many companies are currently in a period of rapid development and strategic upgrading and transformation, their business scale has expanded year by year, and they are gradually becoming more practical and deeper on the road of deepening reforms, enhancing core competitiveness, and improving the quality of development. In particular, the scale of investment areas such as infrastructure has increased year by year, which naturally increases the financial pressure of enterprises. For example, China Railway Construction is a transformation from railway dominance to the five pillars through reasonable retention of funds and continuous improvement of corporate and industrial layout, and has successfully achieved the transformation from railway dominance to the development of market balanced and diversified emerging markets, and has achieved the upgrade from contractors and builders to investors, operators, service providers, manufacturers, and integrators .
There is another very important point, I hope everyone understands it. From the perspective of the use of retained income, part of the net income earned by the enterprise is used to allocate investors and part of it forms the accumulation of the enterprise. The retained income accumulated by the enterprise is still owned by the enterprise owner, but it has not been allocated for the time being, so there is no need to worry too much for investors. Correctly deal with the relationship between distribution and accumulation, retain part of the net income for future distribution needs, and stabilize the fluctuations in the income distribution amount, which is conducive to ensuring a sustainable and stable dividend policy .
. Is the higher the dividend yield, the better?
is a fluctuating value from in the dividend yield, so it is not reflected in the table. But this is another very important parameter, so I will talk about separately here. China Construction 's current share price is around 5 yuan, with a dividend yield of about 4% . This value is actually not low. Many people say, why don’t companies significantly increase their dividend yields? Can't this stimulate stock price to rise? In fact, many companies do not do this. Why?
There are many reasons. Although many companies have mentioned some reasons in their annual reports, I think these are superficial, and there are other reasons as follows:
First of all, many companies are still in the development period, and before it is time to pay a large dividend, large dividends will reduce the development/growth speed of the company;
Secondly, it is for the safety of operations, and you have food in your hands, and you are not panic in your heart. Funds are short of during the development period, and most companies still have large amounts of debt, and the operating environment may undergo adverse changes at any time (domestic and foreign), and have a lot of cash in hand and more insured ;
Third, many companies have equity incentive policies to retain talents. As we all know, equity incentives are not one-time, but are divided into multiple batches in stages. If the stock price rises sharply, will the room for future appreciation imagination be small?
