FOMECO (FBC) Declares 10,000 VND Dividend, Yield 270% vs Market Price
This Aveluro analysis covers FBC on UPCOM in the Industrial Goods & Services sector. The classified event type is dividend announcement, with positive sentiment and a deterministic market-impact score of 5.6/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from Tuổi Trẻ - Kinh doanh, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
FOMECO (FBC), a mechanical engineering firm based in Thai Nguyen, has announced a cash dividend of 10,000 VND per share for 2025, equivalent to a yield of 270% against its current market price of 3,700 VND on UPCoM. The company reported 2025 net profit of 78 billion VND, up 3.3% year-on-year, supporting the payout.
Key Facts
- FBC will pay a cash dividend of 10,000 VND per share for 2025, with record date on August 7, 2026 and payment on September 18, 2026.
- The dividend yield is 270% relative to the current market price of 3,700 VND per share.
- Total dividend payout is approximately 37 billion VND based on 3.7 million outstanding shares.
- 2025 net profit reached 78 billion VND, up 3.3% from 2024.
- 2025 revenue was 1,152 billion VND, up 3.1% year-on-year.
- The company’s largest shareholder is VEAM (Vietnam Engine and Agricultural Machinery Corporation), holding 51% of charter capital.
- FBC has been trading around 3,700 VND since May 2022 with very low liquidity.
What Happened
FOMECO (FBC) announced a cash dividend of 10,000 VND per share for 2025, a payout that is nearly three times the stock’s current market price of 3,700 VND. The record date is set for August 7, 2026, with payment scheduled for September 18, 2026. This follows a similar 10,000 VND dividend for 2024 and a 20,000 VND dividend for 2023.
The company’s 2025 financial results show net profit of 78 billion VND, up 3.3% year-on-year, on revenue of 1,152 billion VND. Total assets stood at 390 billion VND at year-end 2025, down 8% from the start of the year. Notably, receivables from Honda Vietnam amounted to 31 billion VND, representing 28% of short-term customer receivables.
Market Context
FBC is listed on UPCoM and has experienced extremely low trading volumes for years, with the stock price stuck at 3,700 VND since May 2022. The company’s shareholder structure is concentrated, with VEAM holding a 51% controlling stake. The high dividend yield reflects the stock’s depressed price rather than exceptional profitability. The industrial machinery sector in Vietnam has seen mixed performance, with FBC’s revenue growth of 3.1% lagging some peers.
Strategic Significance
FBC’s consistent high dividend payouts (10,000-20,000 VND per share over the past three years) suggest a policy of distributing most of its earnings to shareholders, likely driven by its majority owner VEAM. However, the stock’s illiquidity and narrow free float make it difficult for minority investors to enter or exit positions. The company’s role as a supplier to major automotive manufacturers (Honda, Yamaha, Suzuki, VinFast, Piaggio) provides a stable revenue base, but growth has been modest. The dividend yield is unsustainable if earnings decline, as the payout ratio exceeds 100% of 2025 net profit (37 billion VND payout vs 78 billion VND profit).
What to Watch
- Q1 and Q2 2026 financial statements, which have not yet been released.
- Any change in VEAM’s ownership or dividend policy.
- Trading volume and price movement around the record date.
- Updates on receivables from Honda Vietnam and other key customers.
- Potential delisting or transfer to a more liquid exchange.