KHW State-Owned Water Utility Declares 17.5% Cash Dividend for 2025
This Aveluro analysis covers KHW on UPCOM in the Utilities sector. The classified event type is dividend announcement, with positive sentiment and a deterministic market-impact score of 5.6/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from CafeF - Doanh nghiệp, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Khanh Hoa Water Supply and Drainage Joint Stock Company (KHW) has announced a cash dividend of 17.5% per share for fiscal year 2025, with payment scheduled to begin on August 28, 2026. The company, listed on UPCOM, is majority-owned by the Khanh Hoa Provincial People’s Committee (51%) and REE Clean Water Co., Ltd. (43.88%). This dividend reflects KHW’s stable cash flow in the water utility sector.
Key Facts
- Cash dividend rate: 17.5% per share for fiscal year 2025.
- Payment date: Starting August 28, 2026.
- Estimated payout to Khanh Hoa Provincial People’s Committee (51% stake): over VND 31.9 billion.
- Estimated payout to REE Clean Water Co., Ltd. (43.88% stake): nearly VND 27.5 billion.
- For 87 registered shareholders, after 5% personal income tax deduction, over VND 626.5 million will be transferred to Vietnam Securities Depository and Clearing Corporation.
- Unregistered shareholders will receive cash directly at the company’s headquarters, totaling over VND 1.8 billion.
- H1 2026 net revenue: VND 228 billion, up 4% year-on-year; net profit: nearly VND 40 billion, up 3%.
What Happened
On August 10, 2026, KHW announced the cash dividend payment for 2025 at a rate of 17.5% per share. The company will begin disbursement on August 28, 2026. For shareholders who have deposited their shares, the dividend will be transferred via the Vietnam Securities Depository and Clearing Corporation after deducting 5% personal income tax. Unregistered shareholders will receive cash directly at the company’s headquarters.
The dividend will be distributed to major shareholders: the Khanh Hoa Provincial People’s Committee, holding 51%, will receive over VND 31.9 billion, while REE Clean Water Co., Ltd., holding 43.88%, will receive nearly VND 27.5 billion. The state-owned portion will be remitted to the provincial budget, and REE Clean Water’s portion will be transferred to its registered account.
Market Context
KHW, trading on UPCOM, closed at VND 26,000 on August 3, 2026. The stock has been relatively stable, reflecting the defensive nature of the water utility sector. The company’s H1 2026 results show modest growth: net revenue of VND 228 billion (+4% year-on-year) and net profit of nearly VND 40 billion (+3%). The 17.5% cash dividend implies a yield of approximately 6.7% based on the current share price, which is attractive in the current low-interest-rate environment.
Strategic Significance
The dividend announcement reinforces KHW’s position as a stable, cash-generative utility with strong state backing. The high payout ratio, combined with the company’s consistent earnings, suggests a mature business with limited capital expenditure needs. For long-term investors, KHW offers a defensive income play, though the concentrated ownership structure (94.88% held by two shareholders) limits free float and liquidity. The involvement of REE Clean Water, a subsidiary of REE Corporation, adds a strategic element, potentially opening avenues for operational efficiencies or expansion.
What to Watch
- KHW’s Q3 2026 earnings release to confirm sustained revenue and profit growth.
- Any changes in the ownership structure, particularly any stake sales by the provincial government or REE Clean Water.
- Regulatory developments in the water utility sector, including tariff adjustments that could impact margins.
- KHW’s capital expenditure plans for network expansion or upgrades, which could affect future dividend capacity.
- Trading liquidity on UPCOM, as the low free float may lead to price volatility despite the stable fundamentals.