Hoa Phat Group (HPG) Announces First Cash Dividend in 4 Years, VND 3,800 Billion Payout

Overview

Hoa Phat Group (HPG) has announced a 5% cash dividend for 2025, its first cash dividend in four years, with a total payout of approximately VND 3,800 billion. The record date is set for May 12, 2026, and payment will begin on June 3, 2026. This dividend comes alongside a 10% stock dividend and follows the company’s ambitious 2026 business plan approved at the annual general meeting.

Key Facts

• HPG will pay a 5% cash dividend, equivalent to VND 500 per share, for 2025.
• Total cash payout is approximately VND 3,800 billion based on 7.67 billion outstanding shares.
• Record date for entitlement is May 12, 2026; payment date is June 3, 2026.
• This is HPG’s first cash dividend since early 2021.
• Additionally, HPG will issue a 10% stock dividend, equivalent to 767,546,585 new shares.
• HPG’s shareholder base has grown to about 300,000, up from 160,000 in 2023 and 190,000 in 2024.
• At the April 21 AGM, shareholders approved 2026 targets of VND 210,000 billion revenue and VND 22,000 billion net profit, up 35% and 42% year-on-year respectively.

What Happened

Hoa Phat Group (HPG) announced a cash dividend for 2025 at a rate of 5%, marking the first cash dividend in four years. The record date is May 12, 2026, with payment starting June 3, 2026. Shareholders will receive VND 500 per share, totaling about VND 3,800 billion. The company also plans a 10% stock dividend, issuing over 767 million new shares.

The announcement follows the annual general meeting on April 21, where shareholders approved ambitious 2026 targets: revenue of VND 210,000 billion and net profit of VND 22,000 billion, representing 35% and 42% growth respectively. The company’s steel segment, which accounts for over 90% of revenue and over 80% of profit, is expected to benefit from the completion of the Dung Quat 2 project, which began production in September 2025.

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 trades on HOSE. The dividend announcement comes as HPG reported strong Q1 2026 results: revenue of VND 53,300 billion (+40% YoY) and net profit of VND 9,056 billion, achieving 41% of the full-year profit target. The steel sector has been buoyed by recovering demand and HPG’s capacity expansion.

Strategic Significance

The resumption of cash dividends signals HPG’s confidence in its cash flow generation and earnings sustainability after a four-year hiatus. The combined cash and stock dividend rewards a rapidly growing shareholder base while retaining capital for expansion. The Dung Quat 2 project’s ramp-up supports the ambitious 2026 targets, positioning HPG to capitalize on steel demand recovery. The stock dividend also increases liquidity, potentially attracting more institutional investors.

What to Watch

• Q2 2026 earnings release to assess progress toward full-year targets.
• Steel price trends and demand from construction and manufacturing sectors.
• Production ramp-up at Dung Quat 2 and its impact on margins.
• Any further dividend announcements or capital allocation changes.
• Foreign ownership trends as HPG’s shareholder base expands.