Shareholders of two HCM City Stock Exchange-listed confectionery companies, Kinh Do Corp and North Kinh Do, have agreed to increase their profit targets for the year and issue new shares.

Thanks to a positive performance, North Kinh Do (NKD) will raise its pre-tax profit to VND100 billion (US$5.5 million) from the VND60 billion target it set at its annual shareholder meeting earlier this year.

Kinh Do Corp (KDC) will adjust its profit from the previous VND256 billion to VND530 billion.

Later this year, the NKD will issue to existing shareholders 2.46 million bonus shares, sourced from the company’s accumulated profits, at the ratio of two bonus shares for every 10 owned.

It will also issue, at the same time with its bonus share issuance, around 369,000 equities to its executives, managers and employees at a preferential price of VND15,000.

NKD’s charter capital is expected to reach VND151 billion after it finishes the issuance.

The company will advance its shareholders with a 12 per cent dividend in cash, and payments will begin from November 30.

Meanwhile, the KDC will award shareholders with 22.433 million shares, who will receive four for every 10 they hold.

Its executive and managing board members and employees will be allowed to buy 1.7 million shares at VND20,000 each.

KDC’s charter capital is expected to reach over VND797 billion after the issue.

The company will pay a 24 per cent dividend in cash. Shareholders will receive 12 per cent beginning from November 25, and the remaining 12 per cent from December 25.

The specific days of share issues will depend on the approval of the companies’ applications by the State Securities Commission.