Sonadezi Long Thanh (SZL) Plans 70% Stock Dividend, Capital to Rise to 489B VND

Overview

Sonadezi Long Thanh (SZL), a real estate firm listed on HOSE, announced a 70% stock dividend for 2025, issuing over 19.8 million shares. This will increase its charter capital from 291 billion VND to over 489 billion VND, with implementation expected in Q3/2026. The announcement follows recent treasury stock sales and a modest profit increase in the first half of 2026.

Key Facts

• SZL plans to issue more than 19.8 million shares as a 70% stock dividend (10 existing shares yield 7 new shares).
• Charter capital will rise from 291 billion VND to over 489 billion VND.
• Implementation is expected in Q3/2026, pending SSC notification of complete filing.
• Parent company Sonadezi (SZN) holds nearly 52.75% of SZL through insiders and related parties.
• In a recent treasury sale (June 23–July 22, 2026), SZL sold only 449,800 of 1.2 million registered shares at an average price of 47,696 VND/share.
• Q2/2026 net revenue reached 158 billion VND (+12% YoY), but net profit fell 6% to nearly 32 billion VND.
• H1/2026 net revenue was 297 billion VND (+11% YoY) and net profit 64 billion VND (+5% YoY), achieving about 43% of the full-year target of 148 billion VND.
• On August 12, 2026, SZL closed at 50,800 VND/share, up 1.6%, with a market cap of about 1,440 billion VND.

What Happened

The Board of Directors of Sonadezi Long Thanh (SZL) approved a resolution to implement a stock dividend for 2025. The company will issue over 19.8 million shares, equivalent to 70% of currently outstanding shares. Shareholders will receive 7 new shares for every 10 held. The charter capital will increase from 291 billion VND to over 489 billion VND. The issuance is scheduled for Q3/2026, after the State Securities Commission (SSC) confirms receipt of the full filing documents.

Separately, SZL reported to the SSC on its treasury stock sales. In the period from June 23 to July 22, 2026, the company registered to sell over 1.2 million treasury shares via order matching on HOSE, but only 449,800 shares were sold at an average price of 47,696 VND/share, representing 37% of the registered amount. The company attributed the shortfall to insufficient buyer demand. After this transaction, treasury shares decreased from over 1.2 million to 762,500 shares. A previous sale from March 26 to April 24, 2026, also saw only 558,000 of nearly 1.8 million registered shares sold, for the same reason.

Market Context

SZL shares closed at 50,800 VND on August 12, 2026, up 1.6%, giving a market capitalization of about 1,440 billion VND. The stock trades on HOSE. The dividend announcement comes amid a mixed earnings picture: Q2 net profit declined 6% year-on-year, while H1 profit grew 5%. The company has achieved 43% of its full-year net profit target of 148 billion VND. The treasury stock sales indicate limited liquidity, as the company could not fully execute its planned sales due to lack of buyers.

Strategic Significance

The 70% stock dividend signals SZL’s intention to reward shareholders while retaining cash for operations. The capital increase to 489 billion VND strengthens the company’s equity base, potentially supporting future industrial park development projects. However, the partial treasury sales suggest that market demand for SZL shares may be limited, which could affect the stock’s liquidity post-dividend. The parent company Sonadezi (SZN) maintains a controlling stake, ensuring strategic alignment. For long-term investors, the dividend underscores management’s confidence in cash flow, but the profit decline in Q2 warrants monitoring.

What to Watch

• Confirmation of the SSC’s acceptance of the issuance filing and the exact record date for the dividend.
• Q3/2026 earnings results to see if profit growth resumes, given the Q2 dip.
• Progress on the remaining treasury shares (762,500) and any further sales.
• Updates on industrial park leasing activity and land handover progress.
• Any changes in the parent company’s stake or related-party transactions.