Hoa Phat (HPG) Sets Record Date for 767M Stock Dividend, 5% Cash Payout

Overview

Hoa Phat Group (HPG) has announced record dates for a substantial dividend payout: a 10% stock dividend (over 767 million shares) and a 5% cash dividend. The company also set aggressive 2026 targets of VND 210,000 billion in revenue and VND 22,000 billion in net profit, representing year-on-year growth of 35% and 42% respectively. The announcements follow strong Q1 2026 results and were approved at the annual general meeting on April 21, 2026.

Key Facts

• Record date for stock dividend: May 26, 2026; ratio 100:10 (10 new shares for every 100 held).
• Total stock dividend issuance: over 767.5 million shares, with a par value of nearly VND 7,675.5 billion.
• Record date for cash dividend: May 12, 2026; payment date June 3, 2026; rate 5% (VND 500 per share).
• Total cash dividend payout: over VND 3,837.7 billion.
• Post-issuance charter capital will increase from VND 76,754.7 billion to over VND 84,430 billion.
• 2026 targets: revenue VND 210,000 billion (+35% YoY), net profit VND 22,000 billion (+42% YoY).
• Q1 2026 results: revenue VND 53,312.9 billion (+40.5% YoY), net profit VND 9,055.9 billion (2.7x YoY), achieving 25.4% of revenue target and 41.2% of profit target.

What Happened

Hoa Phat Group (HPG) announced on April 26, 2026, that it will issue over 767.5 million shares as a stock dividend for 2025, with a record date of May 26, 2026. The ratio is 100:10, meaning shareholders receive 10 new shares for every 100 shares held. The issuance will be funded from retained earnings after tax per the audited 2025 financial statements. Additionally, a 5% cash dividend will be paid, with a record date of May 12, 2026, and payment on June 3, 2026. Both dividend plans were approved at the annual general meeting held on April 21, 2026.

At the same meeting, shareholders approved the 2026 business plan targeting revenue of VND 210,000 billion and net profit of VND 22,000 billion, representing increases of 35% and 42% respectively over 2025. The company also reported strong Q1 2026 results, with revenue of VND 53,312.9 billion (+40.5% YoY) and net profit of VND 9,055.9 billion (2.7x YoY), achieving 25.4% of the revenue target and 41.2% of the profit target.

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 has been under pressure amid broader market weakness, but the strong Q1 earnings and dividend announcement may provide support. HPG is listed on HOSE and is the largest steel producer in Vietnam, with a market capitalization of over VND 210 trillion. The steel sector has benefited from robust domestic demand and infrastructure spending, though global steel prices and input costs remain key variables.

Strategic Significance

The dividend payout reflects HPG’s strong cash generation and commitment to shareholder returns. The 10% stock dividend increases liquidity and signals management’s confidence in future earnings. The 2026 targets imply continued growth momentum, driven by capacity expansions and favorable steel demand. The Q1 performance, achieving over 40% of the full-year profit target, suggests the company is on track. However, the high leverage (debt-to-equity ratio of about 54% as of Q1 2026) warrants monitoring, especially if steel prices decline.

What to Watch

• Q2 2026 earnings release in July 2026 for confirmation of growth trajectory.
• Steel price trends (both domestic and global) and input costs (iron ore, coking coal).
• Progress on capacity expansion projects, particularly the Dung Quat 2 integrated steel complex.
• Debt levels and interest coverage ratios in upcoming quarterly reports.
• Any changes in government infrastructure spending or trade policies affecting steel demand.