Song Hong Garment (MSH) Announces 10% Cash Dividend for 2025

Overview

Song Hong Garment (MSH) has announced a 10% cash dividend for the second installment of 2025, with a record date of May 19, 2026, and payment on June 10, 2026. The company also reported Q1/2026 net profit of VND 81.3 billion, down 6.8% year-on-year. The dividend announcement comes alongside the company’s annual general meeting resolution and provides insight into its cash distribution policy.

Key Facts

• MSH will pay a 10% cash dividend (VND 1,000 per share) for the second installment of 2025.
• Record date: May 19, 2026; payment date: June 10, 2026.
• Total payout: approximately VND 112.5 billion based on 112.5 million outstanding shares.
• Full-year 2025 dividend approved at 50% cash, with 40% interim paid in December 2025.
• Q1/2026 net profit: VND 81.3 billion, down 6.8% year-on-year.
• Q1/2026 revenue: VND 1,041.2 billion, up slightly from VND 1,036.2 billion in Q1/2025.
• Major shareholder FPT Securities (FTS) holds 12 million MSH shares, set to receive VND 12 billion in dividends.

What Happened

Song Hong Garment (MSH) announced the second installment of its 2025 cash dividend at a rate of 10%, following the resolution of the 2026 Annual General Meeting held on April 25, 2026. Shareholders on record as of May 19, 2026, will receive VND 1,000 per share, with payment scheduled for June 10, 2026. The company had previously paid a 40% interim dividend in December 2025, bringing the total 2025 dividend to 50% in cash.

In its Q1/2026 financial report, MSH posted net revenue of VND 1,041.2 billion, a marginal increase of VND 5 billion compared to the same period last year. Gross profit rose 10.9% to VND 211.9 billion, but net profit declined 6.8% to VND 81.3 billion, indicating higher operating or financial costs. Total assets as of March 31, 2026, stood at VND 4,319.2 billion, down 7.7% from the start of the year, while total liabilities decreased 17.8% to VND 2,026.4 billion.

Market Context

MSH shares closed at VND 37,000 on April 10, 2026, down 0.53% on low volume of 194,700 shares. The stock trades on HOSE in the textile and garment sector, which has faced headwinds from global demand fluctuations and rising input costs. The dividend yield of 10% (based on the current price) is attractive relative to bank deposit rates, but the year-on-year decline in net profit may temper investor enthusiasm. FPT Securities (FTS), a major shareholder, also saw its stock close at VND 28,000, down 1.41% on higher volume.

Strategic Significance

MSH’s consistent dividend payout reflects a policy of returning cash to shareholders, supported by a strong balance sheet with VND 1,050.8 billion in held-to-maturity investments. However, the decline in Q1 net profit, despite stable revenue, suggests margin pressure from rising costs or lower-margin product mix. The company’s ability to maintain high dividends while investing in capacity will be key for long-term investors. The presence of FTS as a major shareholder also signals institutional confidence.

What to Watch

• Q2 2026 earnings release for signs of margin recovery or further deterioration.
• Management commentary on order book and export demand at the upcoming investor conference.
• Changes in inventory levels (currently VND 889.1 billion) and debt levels (VND 1,257.6 billion in borrowings).
• Any updates on capacity expansion or new contracts that could drive revenue growth.
• Dividend policy for 2026, to be announced at the next AGM.