PAT 29% Cash Dividend: DGC Subsidiary and Former Chairman Family Receive Billions

Overview

Phốt pho Apatit Việt Nam (PAT) will pay a 29% cash dividend on September 25, 2026, distributing about 72.5 billion VND to shareholders. The payment follows a period of leadership upheaval at PAT, including the prosecution of its former chairman. The dividend also benefits major shareholder Hóa chất Đức Giang (DGC) and the family of former DGC chairman Đào Hữu Huyền.

Key Facts

• PAT will pay a cash dividend of 29% (2,900 VND per share) on September 25, 2026, with the record date on September 16, 2026.
• Total dividend payout by PAT is approximately 72.5 billion VND based on 25 million outstanding shares.
• Công ty TNHH MTV Hóa chất Đức Giang Lào Cai, a 100% subsidiary of DGC, holds 51% of PAT and will receive nearly 37 billion VND.
• Former DGC chairman Đào Hữu Huyền (7.69% stake) and Đào Hữu Duy Anh (9.03% stake) will together receive over 12 billion VND from PAT.
• DGC will pay an 80% cash dividend (8,000 VND per share) on the same date, totaling about 3,040 billion VND.
• The family of former chairman Đào Hữu Huyền will receive over 800 billion VND from DGC’s dividend.
• PAT’s Q2 2026 net profit rose 42% year-on-year to nearly 110 billion VND, while H1 net profit fell 4% to 156 billion VND.

What Happened

On September 16, 2026, PAT will finalize its shareholder list for the remaining 2025 cash dividend of 29%, with payment scheduled for September 25, 2026. This follows a period of significant leadership changes at PAT, including the prosecution of former chairman Lưu Bách Đạt in July 2026 on charges of environmental pollution. He was subsequently removed from the board, and Đỗ Thành Công was elected as the new chairman on July 28, 2026.

The dividend also coincides with DGC’s own payout of 80% cash dividend, totaling approximately 3,040 billion VND. The former chairman’s family, which holds substantial stakes in both companies, will receive significant sums from both distributions.

Despite the management turmoil, PAT reported positive Q2 2026 results: revenue rose 8% year-on-year to 517 billion VND, and net profit surged 42% to nearly 110 billion VND. For the first half, revenue increased 2.7% to 939 billion VND, but net profit declined 4% to 156 billion VND.

Market Context

PAT trades on the UPCOM exchange, closing at 72,000 VND on September 6, 2026, while DGC (HOSE) closed at 47,100 VND on the same date. The dividend announcements come amid a broader market focus on cash distributions from chemical companies. PAT’s recent price performance reflects investor attention to its high dividend yield, despite governance concerns. DGC’s stock has been under pressure from ongoing investigations and a forecast 47% profit decline in 2026, according to a securities firm.

Strategic Significance

The dividend payments underscore the strong cash generation of both PAT and DGC, even as DGC faces legal and operational challenges. For PAT, the payout signals stability and shareholder returns despite leadership changes. For DGC, the 80% dividend demonstrates its ability to distribute substantial cash, but the ongoing investigation and profit outlook may temper long-term investor enthusiasm. The alignment of payment dates highlights the close financial ties between the two companies, with DGC’s subsidiary being the majority shareholder of PAT.

What to Watch

• PAT’s Q3 2026 earnings report to assess whether profit growth continues after the leadership transition.
• DGC’s Q3 2026 results and any updates on the investigation affecting its operations.
• Any further management changes at PAT or DGC that could impact strategic direction.
• Market reaction to the dividend payments, including any impact on share prices post-payment.
• Regulatory developments related to the environmental case involving former PAT chairman Lưu Bách Đạt.