SHP AGM: 2025 Dividend Raised to 30%, Cautious 2026 Plan

Overview

SHP (Thuy dien Mien Nam, HOSE) held its 2026 Annual General Meeting on April 23, where shareholders approved a 30% cash dividend for 2025, up from the originally planned 25%. The company also set cautious 2026 targets, including a 25% dividend, amid conservative hydrological forecasts.

Key Facts

• 2025 dividend raised to 30% cash (VND 304B total), with 10% already paid in March 2026 and the remaining 20% expected in June 2026.
• 2026 dividend planned at 25% cash, equivalent to approximately VND 253B.
• 2026 targets: total power output 615 million kWh (-7.5% vs 2025), revenue VND 630B (-3.4%), net profit VND 282B (-5.6%).
• 2025 actual results: power output 665 million kWh (+11% vs plan), revenue VND 653B (+6.6%), net profit VND 298B (+9.4%).
• Da M’bri plant remains the core contributor, expected to generate 365 million kWh in 2026.
• The company cites favorable hydrology and effective cost control for 2025 outperformance.

What Happened

At its 2026 Annual General Meeting held on April 23 in Ho Chi Minh City, SHP (Thuy dien Mien Nam) announced a higher-than-planned cash dividend for 2025. Shareholders approved a 30% dividend rate, up from the initial 25% plan, with total payout of VND 304B. The company had already paid an interim 10% dividend on March 12, 2026, and the remaining 20% is scheduled for June 2026.

For 2026, management adopted a cautious stance, setting total power output at 615 million kWh, down 7.5% from 2025 actuals. Revenue is targeted at VND 630B (-3.4%) and net profit at VND 282B (-5.6%). The company plans a 25% cash dividend for 2026, totaling about VND 253B. The conservative outlook reflects uncertainty in hydrological conditions, though management noted stable plant operations, low depreciation costs, and strong cash flow.

Market Context

SHP shares trade on HOSE in the energy sector. The company’s 2025 results exceeded targets, driven by favorable hydrology and cost control. The dividend increase for 2025 signals strong cash generation, while the cautious 2026 plan may temper near-term growth expectations. The stock’s yield at current levels will be influenced by the 30% dividend payout.

Strategic Significance

SHP’s ability to raise dividends above plan underscores its robust cash flow and low-cost hydro assets. The cautious 2026 guidance suggests management prioritizes financial stability over aggressive growth, which may appeal to income-focused investors. The company’s low depreciation and steady operations provide a buffer against hydrological variability, supporting long-term dividend sustainability.

What to Watch

• Payment of the remaining 20% dividend for 2025 in June 2026.
• Hydrological conditions in the Central Highlands region affecting 2026 output.
• Q1 2026 earnings release to gauge early performance against targets.
• Any changes to the 2026 dividend plan if actual results deviate from forecasts.
• Potential M&A or capacity expansion announcements at future shareholder meetings.