SBA Announces 18% Cash Dividend, Chairman Resigns Ahead of AGM

Overview

Song Ba Corporation (SBA, HOSE) has released documents for its 2026 Annual General Meeting (AGM) proposing an 18% cash dividend for 2025 and a 15% cash dividend for 2026. The company also announced the resignation of its Chairman, Nguyen Van Cuong, ahead of the AGM. Despite strong 2025 results, SBA projects a sharp decline in revenue and profit for 2026.

Key Facts

• SBA proposes an 18% cash dividend for 2025, equivalent to VND 1,800 per share, with a total payout of nearly VND 109 billion.
• The company also plans a 15% cash dividend for 2026.
• 2026 revenue target is VND 241 billion, down over 30% from 2025 actual revenue of VND 351.6 billion.
• 2026 net profit target is VND 97 billion, down 43% from 2025’s VND 169.6 billion.
• SBA plans to issue 3 million bonus shares (5% ratio) from equity, increasing charter capital from VND 605 billion to over VND 635 billion.
• In 2025, actual electricity output reached 308.4 million kWh, exceeding the target by 62%.
• Chairman Nguyen Van Cuong has resigned, effective before the AGM.

What Happened

Song Ba Corporation (SBA) published its 2026 AGM documents, revealing a proposed 18% cash dividend for 2025, a 15% cash dividend plan for 2026, and a 5% stock dividend. The company also disclosed the resignation of Chairman Nguyen Van Cuong ahead of the meeting. The 2025 dividend payout of VND 109 billion will be funded from retained earnings of over VND 385 billion.

For 2026, SBA forecasts a significant downturn: revenue of VND 241 billion (-30% YoY) and net profit of VND 97 billion (-43% YoY), citing hydrological conditions and operational capacity. The company expects electricity output of 203 million kWh, with Khe Dien and Krong H’Nang hydropower plants contributing 38 million kWh and 165 million kWh, respectively.

Market Context

SBA shares have been trading on HOSE, with the stock price reflecting the strong 2025 performance. The 2025 results saw net profit surge 187% above the initial plan, driven by higher-than-expected hydropower output. However, the cautious 2026 guidance and leadership change may weigh on investor sentiment. The broader energy sector in Vietnam faces regulatory and weather-related uncertainties.

Strategic Significance

The proposed high dividend payout underscores SBA’s commitment to shareholder returns following a record year. However, the sharp 2026 profit decline highlights the cyclical nature of hydropower generation, heavily dependent on rainfall. The stock dividend and capital increase signal a focus on strengthening the balance sheet. The Chairman’s resignation adds governance uncertainty, though the company has not disclosed the reason.

What to Watch

• AGM approval of dividend proposals and the new chairman appointment.
• Q1 2026 operational updates, especially electricity output and rainfall data.
• Any further management changes or strategic shifts under new leadership.
• 2026 interim dividend announcements versus the 15% target.
• Regulatory developments affecting hydropower tariffs or operations.