Hodeco (HDC) Plans 15% Stock Dividend for 2025, Issuing 30M Shares in Q3 2026

Overview

Hodeco (HDC), listed on HOSE, has announced a 15% stock dividend for 2025, issuing nearly 30 million shares from retained earnings. The dividend is expected to be completed in Q3 2026, increasing outstanding shares to 229.71 million and raising charter capital to VND 2,297 billion. The announcement follows strong Q1 2026 results, with net profit surging 4.3x year-on-year.

Key Facts

• Hodeco will issue nearly 30 million shares as a 15% stock dividend for 2025.
• The dividend will be funded from after-tax retained earnings as per the audited 2025 financial statements.
• Completion is targeted for Q3 2026.
• Post-issuance, outstanding shares will rise to 229.71 million, charter capital to VND 2,297 billion.
• Q1 2026 net revenue reached VND 248.7 billion, up 2.5x year-on-year; net profit was VND 58.4 billion, up 4.3x.
• Full-year 2026 targets: revenue VND 1,959 billion (+48% vs 2025), net profit VND 493 billion (-23% vs 2025).
• As of March 31, 2026, total assets were VND 5,728 billion, down 5.8% from year-end 2025; total debt was VND 2,732 billion, down 13.1%.

What Happened

Hodeco (HDC) announced a plan to issue nearly 30 million shares as a 15% stock dividend for 2025, using retained earnings from the audited 2025 financial statements. The issuance is scheduled for Q3 2026. Upon completion, the company’s outstanding shares will increase to 229.71 million, corresponding to a charter capital of VND 2,297 billion.

The company reported strong Q1 2026 results: net revenue of VND 248.7 billion (2.5x year-on-year) and net profit of VND 58.4 billion (4.3x year-on-year). For 2026, HDC targets revenue of VND 1,959 billion (+48% vs 2025) and net profit of VND 493 billion (-23% vs 2025). As of Q1 2026, the company had achieved about 12% of both targets.

Market Context

HDC closed at VND 18,850 on May 14, 2026, up 0.80% with volume of 1.17 million shares. The stock dividend announcement comes amid a mixed real estate sector on HOSE. HDC’s Q1 2026 earnings growth was robust, but the full-year profit target implies a decline, suggesting management expects a normalization after a strong 2025. The company’s inventory of VND 1,467 billion is concentrated in The Light City complex project (VND 980 billion), while work-in-progress costs of VND 2,258 billion span several projects, including Long Điền (VND 803 billion), Cỏ Mây urban area (VND 652 billion), and Phước Thắng (VND 508 billion).

Strategic Significance

The stock dividend signals Hodeco’s confidence in its retained earnings and liquidity, allowing it to reward shareholders without cash outflow. The increase in outstanding shares will dilute earnings per share in the near term but may improve trading liquidity. HDC’s focus on projects in Bà Rịa-Vũng Tàu and Hồ Chí Minh City positions it to benefit from regional infrastructure development. The company’s debt reduction (down 13.1% from year-start) and strong Q1 performance provide a buffer against the profit decline targeted for 2026.

What to Watch

• Completion timeline and any regulatory approvals for the stock dividend issuance in Q3 2026.
• Q2 2026 earnings release to assess whether the company is on track to meet its full-year targets.
• Progress of key projects: The Light City, Long Điền, Cỏ Mây, and Phước Thắng.
• Changes in foreign ownership limits and HDC’s free float post-dividend.
• Any updates on the company’s debt profile and refinancing plans.