HGM Declares 50% Cash Dividend Despite 83% Profit Drop
This Aveluro analysis covers HGM on HNX in the Basic Resources sector. The classified event type is dividend announcement, with mixed sentiment and a deterministic market-impact score of 5.6/10. Source coverage came from CafeF - Doanh nghiệp, 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
HGM (Cơ khí và Khoáng sản Hà Giang) has announced a 50% cash dividend for the first installment of 2026, paying 5,000 VND per share. The record date is August 14, 2026, with payment on August 28, 2026. This payout comes despite a sharp 83% drop in first-half net profit, highlighting the company’s commitment to maintaining high shareholder returns.
Key Facts
- Dividend rate: 50% cash, equivalent to 5,000 VND per share.
- Record date: August 14, 2026; ex-right date: August 13, 2026.
- Payment date: August 28, 2026.
- Total payout: approximately 63 billion VND based on charter capital of 126 billion VND (12.6 million shares).
- H1 2026 revenue: ~119 billion VND, down 72.6% year-on-year.
- H1 2026 net profit: ~52 billion VND, down over 83% versus H1 2025.
- Q2 2026 net profit: 8.7 billion VND, down nearly 96% year-on-year.
- 2025 full-year dividend: 218% (21,800 VND/share) across three installments.
What Happened
According to a notice from the Vietnam Securities Depository and Clearing Corporation (VSDC), HGM will close the shareholder list on August 14, 2026, for the first cash dividend installment of 2026. The company will pay 5,000 VND per share, a 50% payout ratio, with disbursement scheduled for August 28. This follows a remarkable 2025 when HGM paid a total dividend of 218% (21,800 VND/share), funded by record profits driven by surging antimony prices.
However, 2026 has seen a dramatic reversal. In Q2, revenue fell over 85% to just under 42 billion VND, and net profit dropped nearly 96% to 8.7 billion VND. The company attributed the decline to a 52% drop in average selling prices and an 86% reduction in sales volume. For the first half, revenue reached nearly 119 billion VND (down 72.6%) and net profit was about 52 billion VND (down over 83%).
Market Context
HGM trades on the Hanoi Stock Exchange (HNX) under the basic resources sector. The stock closed at 131,500 VND on August 10, 2026, implying a dividend yield of approximately 3.8% for this installment alone. The company’s high dividend policy has made it a favorite among income-focused investors, but the sharp profit decline raises questions about sustainability. The broader Vietnamese market has seen volatility in commodity-linked stocks as global prices normalize.
Strategic Significance
HGM’s decision to maintain a high dividend despite a severe earnings slump signals management’s confidence in its cash reserves and long-term outlook. The company’s core product, antimony, is critical for defense and industrial applications, and 2025’s windfall profits were driven by China’s export restrictions. While current prices have fallen, HGM’s ability to sustain payouts could support its share price and investor loyalty. However, if the profit downturn persists, future dividends may be at risk, making this payout a potential high-water mark.
What to Watch
- Q3 2026 earnings report (due October 2026) for signs of volume or price recovery.
- Global antimony price trends and any changes in China’s export policy.
- HGM’s cash position and whether it can maintain dividends at current levels.
- Any guidance from management on full-year 2026 dividend plans.
- Regulatory or geopolitical developments affecting antimony trade.