Hoa Tho Textile (HTG) Completes 7.2M Share Dividend Issuance, Charter Capital Tops 432B VND

Overview

Hoa Tho Textile (HTG) has completed the issuance of nearly 7.2 million shares to pay 2025 dividends, raising its charter capital to over 432 billion VND. The company also announced a 5% cash dividend for the second round. The capital increase and dividend payments underscore HTG’s steady financial performance and commitment to shareholder returns.

Key Facts

• HTG issued nearly 7.2 million shares to pay 2025 dividends, increasing charter capital from 360 billion VND to over 432 billion VND.
• The issuance was completed on July 17, 2026, with shares distributed to 2,931 shareholders at a ratio of 5:1 (5 rights for 1 new share).
• Total issuance value at par was nearly 72 billion VND, sourced from retained earnings as of December 31, 2025.
• HTG also declared a 5% cash dividend for the second round of 2025, paying 500 VND per share, totaling over 18 billion VND.
• Q2 2026 net revenue reached 1,484 billion VND (+13.3% YoY), with net profit of 135.2 billion VND (+3.7% YoY).
• First-half 2026 revenue was 2,823.4 billion VND (+9.1% YoY), net profit 199.6 billion VND (+6.1% YoY).
• As of June 30, 2026, total assets stood at 4,129.4 billion VND, with debt of 2,855.6 billion VND (65% in borrowings and leases).

What Happened

Hoa Tho Textile (HTG) reported to the State Securities Commission and Ho Chi Minh City Stock Exchange (HoSE) that it had successfully completed the issuance of nearly 7.2 million shares to pay dividends for 2025. The shares were distributed to 2,931 shareholders, with 77 shareholders receiving zero shares due to fractional share handling. The issuance increased charter capital from over 360 billion VND to more than 432 billion VND.

On the same date, HTG also closed the shareholder list for the second cash dividend payment of 2025 at a rate of 5% (500 VND per share). With over 36 million shares outstanding, the total cash payout is approximately 18 billion VND. The company’s financial results for the first half of 2026 showed steady growth, with net profit rising 6.1% year-on-year.

Market Context

HTG shares closed at 34,000 VND on July 26, 2026, on HoSE. The textile sector has faced headwinds from global demand fluctuations, but HTG’s consistent dividend policy and moderate earnings growth provide some stability. The stock’s price-to-earnings ratio based on trailing earnings is approximately 10x, reflecting a reasonable valuation for a dividend-paying textile firm.

Strategic Significance

The share dividend issuance and cash dividend demonstrate HTG’s commitment to returning value to shareholders while retaining sufficient capital for operations. The increase in charter capital strengthens the company’s equity base, potentially supporting future borrowing capacity. HTG’s strong cash position (over 1.25 trillion VND in held-to-maturity investments) and manageable debt levels suggest a conservative financial strategy. The steady revenue and profit growth indicate resilience in the textile sector, though the company’s high debt-to-equity ratio (approximately 1.9x) warrants monitoring.

What to Watch

• Q3 2026 earnings report to assess whether revenue and profit growth momentum continues.
• Any changes in dividend policy for 2026, given the increased charter capital.
• Debt levels and interest coverage ratio, especially with borrowings at 65% of total liabilities.
• Global textile demand trends and their impact on HTG’s export orders.
• Potential share price reaction as the new shares become tradable in Q3 2026.