HGM Announces 50% Cash Dividend Despite Q1 Profit Plunge on Antimony Price Drop

Overview

HGM (HNX: HGM), a mining and machinery company known for its antimony operations, has announced a 50% cash dividend (5,000 VND/share) for the first installment of 2026, with a record date of August 14, 2026. The dividend comes despite a significant decline in Q1 2026 earnings, as antimony prices and sales volumes dropped sharply. The company has a long history of high cash dividends, but the current payout may strain finances given the deteriorating business performance.

Key Facts

• Record date for the dividend is August 14, 2026; payment date is August 28, 2026.
• Dividend rate: 50% in cash, equivalent to 5,000 VND per share.
• Total estimated payout: approximately 63 billion VND, based on 12.6 million outstanding shares.
• SCIC, holding 46.64% of HGM, will receive about 29.4 billion VND; DP International Co., Ltd. (7.95% stake) will receive about 5 billion VND.
• Q1 2026 net revenue: 77 billion VND (down 50% YoY); net profit: 43 billion VND (down 58% YoY).
• Gross margin narrowed from 84.9% to 74.2% in Q1 2026.
• Antimony sales price fell nearly 30% and sales volume dropped 29% YoY in Q1 2026.
• HGM has paid cash dividends every year since listing in 2009; total 2025 dividend was 218% (highest ever), 2024: 148%, 2023: 45%.

What Happened

On July 27, 2026, HGM announced a record date of August 14, 2026 for the first installment of its 2026 cash dividend. Shareholders will receive 5,000 VND per share, representing a 50% dividend rate. The company expects to disburse approximately 63 billion VND, with major shareholder SCIC receiving the largest portion. The announcement follows a tradition of high cash dividends, with 2025’s total payout reaching 218%.

However, the company’s Q1 2026 financial results showed a sharp decline. Revenue fell 50% YoY to 77 billion VND, and net profit dropped 58% to 43 billion VND. HGM attributed the decline to a nearly 30% drop in antimony prices and a 29% reduction in sales volume. Gross margin also contracted from 84.9% to 74.2%.

Market Context

HGM shares closed at 127,000 VND on July 27, 2026, on the HNX exchange. The stock has been under pressure due to the weak Q1 results and the broader decline in antimony prices. The company operates in the basic resources sector, with its flagship antimony mine in Mau Due, Ha Giang province. Antimony is a strategic mineral used in defense, batteries, and industrial applications, and demand has been volatile amid global economic uncertainty.

Strategic Significance

HGM’s high dividend payout is a hallmark of its shareholder return policy, but the current earnings decline raises concerns about the sustainability of such distributions. The company’s reliance on antimony, a commodity with cyclical price swings, exposes it to significant earnings volatility. While antimony is considered a strategic mineral by several countries, including the US and EU, the near-term price weakness may persist if global industrial demand remains subdued. Investors should monitor whether HGM can maintain its dividend policy without compromising its operational or investment needs.

What to Watch

• Q2 2026 earnings release: expected in late October 2026, to see if antimony prices and sales volumes recover.
• Antimony price trends: global benchmark prices and any supply-demand shifts.
• HGM’s dividend policy for the second installment of 2026: announcement likely in early 2027.
• Any changes in major shareholder stakes, particularly SCIC’s position.
• Regulatory developments regarding antimony mining or export policies in Vietnam.