Sonadezi Chau Duc (SZC) Sets 10% Cash Dividend, Record Date Sept 14

Overview

Sonadezi Chau Duc (SZC) announced a 10% cash dividend for 2025, with a record date of September 14, 2026 and payment starting October 12, 2026. The company will distribute approximately VND 180 billion to shareholders. This payout occurs amid a significant year-on-year decline in H1 2026 revenue and net profit, highlighting a strategic focus on shareholder returns despite operational headwinds.

Key Facts

• Dividend rate: 10% cash (VND 1,000 per share) for fiscal year 2025.
• Record date: September 14, 2026; payment date: October 12, 2026.
• Total payout: approximately VND 180 billion based on ~180 million shares outstanding.
• Parent company Sonadezi (SNZ, UPCoM) holds 84.3 million shares (46.84%) and will receive ~VND 84.3 billion.
• Sonadezi Long Thanh (SZL, HOSE) holds 18.1 million shares (10.08%) and will receive ~VND 18.1 billion.
• H1 2026 revenue: VND 243.9 billion, down 62.3% YoY; net profit: VND 36.1 billion, down 83.6% YoY.
• Industrial park infrastructure revenue (first-time sales) was absent in H1 2026, versus VND 518 billion in H1 2025.

What Happened

Sonadezi Chau Duc (SZC) announced via a board resolution that it will pay a cash dividend for 2025 at a rate of 10%, meaning shareholders receive VND 1,000 per share. The record date is set for September 14, 2026, with payment beginning October 12, 2026. With nearly 180 million shares outstanding, the company will disburse close to VND 180 billion.

The company’s H1 2026 financial statements, reviewed by auditors, show a sharp decline in performance. Total revenue fell 62.3% year-on-year to VND 243.9 billion, and net profit dropped 83.6% to VND 36.1 billion. The decline is primarily due to the absence of first-time industrial park infrastructure revenue, which had contributed VND 518 billion in H1 2025. However, recurring revenue streams showed growth: industrial park infrastructure (recurring) rose 84.4% to VND 68.6 billion, road toll revenue increased 130.7% to VND 73.6 billion, and residential project revenue jumped from VND 4.9 billion to VND 45.8 billion.

Market Context

SZC trades on HOSE and closed at VND 19,700 on August 23, 2026. The stock has likely been pressured by the weak H1 results, but the dividend announcement may provide some support. Parent company Sonadezi (SNZ) closed at VND 23,700 on UPCoM, while Sonadezi Long Thanh (SZL) closed at VND 50,900 on HOSE. The industrial real estate sector in Vietnam remains active, but SZC’s reliance on large one-off infrastructure sales creates volatility in earnings.

Strategic Significance

For long-term investors, SZC’s dividend payout signals management’s commitment to returning cash despite a cyclical downturn in earnings. The company is investing heavily in long-term assets (VND 3,676 billion in construction in progress, 43.4% of total assets) and holds significant inventory (VND 1,851 billion), indicating future development potential. The dividend also provides a steady income stream for parent SNZ and SZL, which rely on SZC’s distributions. However, the sharp profit decline underscores the lumpy nature of industrial park revenue, and investors should assess whether the dividend is sustainable if earnings remain weak.

What to Watch

• Q3 2026 earnings release: Look for recovery in industrial park infrastructure sales and continued growth in recurring revenue.
• Progress of construction in progress: Monitor whether large projects convert to revenue-generating assets.
• Debt levels: Total borrowings of VND 2,508.6 billion (47.8% of total liabilities) could pressure cash flow if interest rates rise.
• Dividend sustainability: Watch if the company maintains the 10% payout in 2026 given the earnings decline.
• Related-party transactions: Any changes in ownership stakes by SNZ or SZL could affect dividend flows.