NTP Plans 20% Stock Dividend for 2025, 34.2M Shares to Be Issued in 2026

Overview

Nhua Tien Phong (NTP, HNX) will issue over 34.2 million shares as a 20% stock dividend for 2025, with issuance expected in 2026. The company also approved a 15% cash dividend for the second installment of 2025, payable in Q2/2026. The moves follow shareholder approval at the 2026 Annual General Meeting and reflect NTP’s strong retained earnings and growth outlook.

Key Facts

• NTP plans to issue 34.2 million shares as a 20% stock dividend for 2025, with issuance expected in 2026.
• Total par value of the stock dividend is VND 342 billion, sourced from retained earnings.
• Charter capital will increase from VND 1,710 billion to VND 2,052 billion after the issuance.
• A 15% cash dividend (VND 1,500 per share) for the second installment of 2025 will be paid in Q2/2026.
• The first installment of the 2025 cash dividend (15%) was paid on January 20, 2026, totaling VND 256.6 billion.
• The 2026 AGM approved 2026 targets: revenue of VND 7,330 billion, sales volume of 148,000 tons, and pretax profit of VND 900 billion.
• NTP plans capital expenditure of VND 398.8 billion for new machinery, VND 64.5 billion for construction, and VND 5 billion for other purposes.

What Happened

Nhua Tien Phong (NTP) announced a plan to issue 34.2 million shares as a 20% stock dividend for 2025, using retained earnings from the 2025 separate financial statements. The issuance is expected to occur in 2026, pending notification to the State Securities Commission. If successful, charter capital will rise from VND 1,710 billion to VND 2,052 billion.

Additionally, the board approved a 15% cash dividend (VND 1,500 per share) for the second installment of 2025, to be paid in Q2/2026. This follows a first installment of 15% paid on January 20, 2026. All dividend plans were approved at the 2026 AGM held on April 28, 2026. The AGM also approved 2026 business targets: revenue of VND 7,330 billion, sales volume of 148,000 tons, and pretax profit of VND 900 billion.

Market Context

NTP shares trade on HNX and have been supported by consistent dividend payouts and a solid market position in Vietnam’s plastics sector. The stock dividend and cash dividend reflect the company’s strong retained earnings and commitment to shareholder returns. The 2026 targets imply continued growth, with pretax profit of VND 900 billion representing a significant increase from prior years. The broader plastics sector has benefited from stable demand and input cost management.

Strategic Significance

The stock dividend increases NTP’s equity base without diluting cash reserves, supporting future investment plans. The company’s capital expenditure of over VND 468 billion for machinery and construction signals a focus on capacity expansion and efficiency. The high dividend payout ratio (20% stock + 15% cash) underscores management’s confidence in earnings sustainability. For long-term investors, NTP’s ability to maintain such payouts while funding growth is a key metric.

What to Watch

• Confirmation of the stock dividend issuance timeline from the State Securities Commission.
• Q2/2026 cash dividend payment execution and any updates on the 2026 business performance.
• Progress on the VND 398.8 billion machinery investment and its impact on production capacity.
• NTP’s ability to meet the 2026 revenue and profit targets amid potential raw material price volatility.
• Any changes in foreign ownership limits or dividend policy at future shareholder meetings.