RAL Announces 25% Cash Dividend for Second Installment of 2025

Overview

Rang Dong Light Source and Vacuum Flask JSC (HOSE: RAL) announced a 25% cash dividend for the second installment of 2025, to be paid on May 14. With over 23.5 million shares outstanding, the total payout is nearly VND 59 billion. The dividend maintains RAL’s long-standing cash dividend policy despite a challenging 2025 that saw net profit fall 39%.

Key Facts

• Dividend rate: 25% in cash, equivalent to VND 2,500 per share.
• Payment date: May 14, 2025.
• Total payout: nearly VND 59 billion.
• Largest shareholder: the company’s labor union, holding 40.5% of shares.
• First installment of 2025 was also 25%, paid in September 2025.
• 2025 full-year net profit: VND 361 billion, down 39% year-on-year.
• 2025 revenue: VND 6,360 billion, down 24% year-on-year.
• Q1 2026 revenue: VND 1,795 billion (+17.5% YoY); net profit: VND 131.6 billion (+16.4% YoY).

What Happened

Rang Dong Light Source and Vacuum Flask JSC (RAL) announced via a company filing that it will pay the second cash dividend installment for 2025 on May 14, 2025, at a rate of 25% (VND 2,500 per share). The total payout is approximately VND 59 billion, with the company’s labor union, holding 40.5% of shares, receiving the largest portion.

The company has maintained a consistent cash dividend policy in recent years, with the first 2025 installment also at 25% paid in September 2025. The announcement comes despite a difficult 2025, where net profit fell 39% to VND 361 billion and revenue declined 24% to VND 6,360 billion. Management attributed the decline to three major pressures: a wave of cheap imported goods (especially from China), changes in production methods due to digitalization and AI, and the entry of international corporations with strong online and O2O platforms. Additionally, US tariff policies affected exports, and a year-end natural disaster caused significant damage, including flooding at the company’s Nha Trang warehouse.

Market Context

RAL shares have been trading at low levels after a sharp decline in April-May 2025. As of the May 11 session, the stock closed at VND 85,600. The dividend yield at this price is approximately 2.9% for the second installment alone, or 5.8% for the full 2025 dividend. The company’s Q1 2026 results show a recovery, with revenue up 17.5% and net profit up 16.4% year-on-year, suggesting the worst may be over. RAL is listed on HOSE and operates in the consumer staples sector, focusing on LED lighting, smart electrical devices, and integrated solutions for smart buildings, cities, and agriculture.

Strategic Significance

RAL’s decision to maintain a high cash dividend despite a sharp profit decline signals management’s commitment to shareholder returns and confidence in the company’s cash flow generation. The company is undergoing a strategic restructuring toward becoming a technology solutions provider, offering integrated systems alongside individual products. This pivot is reflected in Q1 2026 growth: project revenue surged 174%, e-commerce rose 27%, and exports increased 91% year-on-year. The dividend policy, combined with the restructuring, may appeal to income-focused investors, but the sustainability of dividends will depend on the success of the transformation and the competitive landscape.

What to Watch

• Q2 2026 earnings release to confirm the recovery trend.
• Progress of the restructuring into a technology solutions company.
• Impact of US tariff policies on export revenue.
• Competitive dynamics from Chinese imports and international O2O players.
• Any changes in dividend policy for 2026.