HHV Completes 27.3M Share Dividend Issuance, Q1 Net Profit Up 25.7%

Overview

Deo Ca Traffic Infrastructure Investment JSC (HHV) has completed the issuance of 27.3 million shares as stock dividends to shareholders, effective July 10, 2026. The move increases the company’s charter capital to VND 5,745.1 billion. Separately, HHV reported a 25.7% rise in Q1/2026 net profit to VND 217.3 billion, supported by revenue growth of 23.4%.

Key Facts

• HHV issued 27.3 million shares as stock dividends at a ratio of 20:1 (20 existing shares receive 1 new share).
• The issuance increased charter capital from VND 5,471.6 billion to VND 5,745.1 billion.
• The dividend was paid from retained earnings after tax per the audited 2025 financial statements.
• New shares are not subject to transfer restrictions.
• HHV plans a private placement of up to 57.5 million shares (10% of current capital) to professional investors, with a 1-year lock-up period and a minimum price of VND 10,000 per share.
• Proceeds from the private placement (estimated VND 575 billion at par) will be used to acquire a 370 billion stake in ICV Vietnam and a 200 billion stake in Cam Lam - Vinh Hao Expressway.
• Q1/2026 net profit reached VND 217.3 billion, up 25.7% year-on-year, on net revenue of VND 907 billion (+23.4%).

What Happened

Deo Ca Traffic Infrastructure Investment JSC (HHV) announced the completion of its stock dividend issuance on July 10, 2026, allocating 27.3 million shares to 53,590 shareholders. The 20:1 ratio means shareholders received one new share for every 20 shares held. The company sourced the dividend from retained earnings after tax for fiscal year 2025, as confirmed in the audited financial statements. The new shares are expected to be transferred in August 2026 and are freely tradable.

In addition to the dividend, HHV disclosed plans for a private placement of nearly 57.5 million shares (10% of outstanding shares) to professional investors. The offering price will be set by the board but not below par value (VND 10,000). Proceeds, estimated at VND 575 billion, are earmarked for increasing HHV’s stake in ICV Vietnam (VND 370 billion) and acquiring shares in Cam Lam - Vinh Hao Expressway (VND 200 billion) from related parties.

Market Context

HHV shares closed at VND 10,300 on July 17, 2026, on the HOSE. The stock has been influenced by the company’s expansion into expressway assets and its consistent dividend policy. The Q1/2026 earnings beat expectations, with net profit growth outpacing revenue, driven by improved gross margins (gross profit rose 33% to VND 513.5 billion). However, financial costs increased to VND 279.3 billion, partly offsetting operational gains.

Strategic Significance

The stock dividend and planned private placement reflect HHV’s strategy to fund acquisitions of stakes in key expressway projects (ICV Vietnam and Cam Lam - Vinh Hao) without diluting existing shareholders significantly. The 20:1 ratio is modest, preserving capital for growth. The private placement, if executed at a premium, could strengthen HHV’s balance sheet and support its role as a consolidator in Vietnam’s toll road sector. The simultaneous management changes (three new deputy general directors) suggest a reorganization to align with these expansion plans.

What to Watch

• Completion and pricing of the 57.5 million share private placement, expected in H2 2026.
• Q2 2026 earnings release to confirm sustained revenue and profit momentum.
• Progress on the acquisitions of ICV Vietnam and Cam Lam - Vinh Hao Expressway stakes.
• Any further management changes or strategic shifts following the board’s reorganization.
• Regulatory approvals for the private placement and related party transactions.