Nam Hoa (NHT) Announces 30% Cash Dividend After Strong 2025 Recovery

Overview

Nam Hoa Wooden Toy Manufacturer (NHT) announced a 30% cash dividend for 2025, equivalent to 3,000 VND per share, with record date May 25, 2026 and payment on June 11, 2026. The dividend follows a strong financial recovery: 2025 net profit surged 357% to over 40 billion VND on revenue of 382 billion VND (+8.5%), driven by restructuring and asset sales.

Key Facts

• NHT declared a 30% cash dividend for 2025, paying 3,000 VND per share.
• Record date for the dividend is May 25, 2026; payment expected on June 11, 2026.
• 2025 consolidated net revenue reached 382 billion VND, up 8.5% year-on-year.
• 2025 consolidated net profit exceeded 40 billion VND, a 357% increase from 2024.
• In Q1 2026, revenue rose nearly 10% to 52 billion VND, and net profit increased 180% to nearly 8.3 billion VND.
• The company sold its factory in Cu Chi for nearly 160 billion VND in 2025, reducing inventory and improving financial structure.
• Subsidiary Mien Que shifted from furniture manufacturing to industrial property leasing, now generating nearly 50 billion VND in annual rental income from 85,000 sqm of land and factories.

What Happened

The Board of Directors of Nam Hoa Production and Trading Joint Stock Company (ticker: NHT) approved a resolution to pay a 30% cash dividend for 2025, according to a company announcement. Shareholders will receive 3,000 VND per share, with the record date set for May 25, 2026 and payment scheduled for June 11, 2026.

The dividend reflects the company’s improved cash flow after a comprehensive restructuring. In 2025, NHT sold its Cu Chi factory for nearly 160 billion VND, significantly reduced raw material and work-in-progress inventory, and streamlined its subsidiary Mien Quê. The subsidiary, originally established to enter the high-end furniture market, incurred losses in 2023-2024 due to weak US demand. NHT closed the export furniture manufacturing line, liquidated inefficient assets, and pivoted Mien Quê to industrial property leasing. Mien Quê now owns approximately 85,000 sqm of land and factories for lease, generating stable annual revenue of nearly 50 billion VND.

Market Context

NHT is listed on the HOSE exchange. The stock has likely benefited from the company’s turnaround story, as the 357% profit surge and high dividend yield (30% of par value) attract income-focused investors. The broader Vietnamese consumer discretionary sector has seen mixed performance, with export-oriented firms facing headwinds from global demand fluctuations. NHT’s shift to industrial property leasing provides a more stable revenue stream, differentiating it from pure-play manufacturers.

Strategic Significance

The high dividend payout signals management’s confidence in the sustainability of the company’s cash flow following restructuring. By divesting loss-making furniture operations and converting assets to income-generating industrial property, NHT has reduced operational risk and created a dual revenue model: core wooden toy manufacturing and factory leasing. The company’s focus on green consumption trends and high-quality wooden toys for export markets (Europe, Japan, US) positions it for long-term demand, while the leasing segment provides a buffer against manufacturing volatility.

What to Watch

• Q2 2026 earnings release to confirm continued revenue and profit momentum.
• Utilization rates and rental income from Mien Quê’s industrial property portfolio.
• Any further asset sales or restructuring moves that could impact financial leverage.
• Export order trends from key markets (EU, Japan, US) for wooden toys and decor.
• Dividend policy for 2026 and beyond, as the company may adjust payout ratios based on cash flow needs.