Hoa Phat (HPG) Proposes 15% Dividend for 2026, Reports Strong 2025 Results

Overview

Hoa Phat Group (HPG) held its 2026 Annual General Meeting on April 21, where the Board of Directors proposed a 15% dividend payout for 2026 and approved a 5% cash dividend plus 10% stock dividend for 2025. Chairman Tran Dinh Long noted the company now has nearly 300,000 shareholders, the largest base on the Vietnamese stock market. The company also reported strong 2025 results and set ambitious 2026 targets.

Key Facts

• HPG reported 2025 revenue of VND 158,332 billion (+13% YoY) and net profit of VND 15,515 billion (+29% YoY), achieving 103% of the profit target.
• The 2026 business plan targets revenue of VND 210,000 billion (+35%) and net profit of VND 22,000 billion (+42%).
• The company will pay a 5% cash dividend and a 10% stock dividend for 2025, raising charter capital to over VND 84,430 billion.
• The Board proposes a 15% dividend payout for 2026.
• Dung Quat 2 steel complex, with a capacity of 6 million tonnes of HRC per year and total investment of VND 85,000 billion, began production in September 2025.
• HPG’s total crude steel capacity will reach 16 million tonnes per year by end-2026, ranking among the global top 30.
• The company is launching three projects in Dak Lak province with total investment of VND 120,000 billion, including the Hoa Phat Phu Yen steel complex (6 million tonnes/year).

What Happened

At the 2026 Annual General Meeting on April 21, Hoa Phat Group (HPG) Chairman Tran Dinh Long expressed surprise at the company’s nearly 300,000 shareholders, calling it the largest shareholder base on the Vietnamese stock market. He acknowledged the pressure but also the pride in investor trust.

The company reported 2025 revenue of VND 158,332 billion and net profit of VND 15,515 billion, up 13% and 29% respectively from 2024. Although revenue reached only 93% of the plan, profit exceeded the target by 3%. For 2026, HPG targets revenue of VND 210,000 billion and net profit of VND 22,000 billion, representing growth of 35% and 42%.

The steel segment, which accounts for over 90% of revenue and over 80% of profit, is the main growth driver. The Dung Quat 2 complex, with a capacity of 6 million tonnes of HRC per year and total investment of VND 85,000 billion, began production in September 2025. This will raise total crude steel capacity to 16 million tonnes per year by end-2026. Additionally, three projects in Dak Lak province, including the Hoa Phat Phu Yen steel complex (6 million tonnes/year), are underway with total investment of VND 120,000 billion.

Market Context

HPG shares closed at VND 28,000 on April 15, 2026, down 1.75% on volume of 27.5 million shares. The stock is a blue-chip component of the VN30 index. The steel sector has been supported by strong domestic demand and infrastructure spending, but faces headwinds from global steel prices and trade policies. HPG’s capacity expansion positions it to capture market share, but execution risks remain.

Strategic Significance

HPG’s aggressive capacity expansion, including Dung Quat 2 and the Phu Yen complex, aims to cement its position as Vietnam’s leading steel producer and a top-30 global player. The proposed 15% dividend for 2026 signals management confidence in sustained earnings growth. The company’s large shareholder base reflects its retail appeal, but also increases pressure for consistent returns. The success of the new projects will be critical to achieving the 2026 profit target and maintaining dividend growth.

What to Watch

• Q1 2026 earnings release to assess initial contribution from Dung Quat 2.
• Progress of the Dak Lak projects and any financing updates.
• Global steel price trends and trade policy developments affecting exports.
• Actual dividend payout ratio for 2026 versus the proposed 15%.
• Any changes in foreign ownership limits or shareholder structure.