Dam Sen Water Park (DSN) Approves 40% Cash Dividend, Plans Mekong Delta Expansion

Overview

Dam Sen Water Park Corporation (DSN, HOSE) approved a 40% cash dividend at its 2026 Annual General Meeting held on April 22 in Ho Chi Minh City. The company also outlined plans to expand into the Mekong Delta region, seeking new growth drivers amid declining group tourist numbers and rising fuel costs. DSN targets 2026 revenue of VND 190 billion (+4.7% YoY) and after-tax profit of VND 73 billion.

Key Facts

• DSN approved a 40% cash dividend for 2026 (VND 4,000 per share).
• 2026 revenue target: VND 190 billion, up 4.7% from 2025.
• 2026 after-tax profit target: VND 73 billion, slightly above 2025.
• Group tourist numbers fell by nearly 35,000 visitors in the current year.
• The company scrapped its Cu Chi expansion project due to zoning issues and unsuitable location.
• DSN is actively seeking land in Mekong Delta provinces for new water park development.
• The company is divesting its fruit juice factory project in Phan Thiet, aiming for a full exit in 2026.

What Happened

At the 2026 Annual General Meeting of Dam Sen Water Park Corporation (DSN), Chairman Tran Viet Anh acknowledged significant operational headwinds. He cited the Middle East conflict driving up fuel prices, which sharply increased costs for the company’s fleet of 45-seat buses, eroding margins. Group tour operators have been forced to cut prices, leaving DSN with no room to reduce further or provide support, resulting in a loss of nearly 35,000 group visitors.

Additionally, Dong Nai province restricted student field trips outside the province, and competitor Dai Nam offered free admission for students, further shrinking DSN’s customer base. To counter these challenges, management is tightening operating costs and expects revenue recovery in the second half of the year. The company also approved a 40% cash dividend and set modest growth targets for 2026.

Market Context

DSN shares have faced pressure from the broader tourism sector slowdown and rising input costs. The company operates in the competitive water park segment in Ho Chi Minh City, with increasing competition from newer and larger entertainment complexes. The stock trades on HOSE and has seen subdued trading volumes amid uncertainty over group travel demand. The 40% dividend yield provides some support, but the market is watching for signs of sustainable growth beyond the core park.

Strategic Significance

DSN’s strategic pivot to the Mekong Delta represents a shift from its failed Cu Chi expansion. The region offers sunny weather and a lack of professional water parks, presenting a potential growth opportunity. Funding for new projects will come from retained dividends, with possible additional financing if needed. The divestment of the non-core fruit juice factory in Phan Thiet underscores management’s focus on core operations. However, the near-term outlook remains challenged by cost pressures and a shrinking group tourist segment.

What to Watch

• Progress on Mekong Delta land acquisition and project feasibility studies.
• Completion of the Phan Thiet factory divestment and its impact on cash flow.
• Q2 2026 earnings report for signs of revenue recovery and cost control.
• Changes in group tourist numbers, especially from Ho Chi Minh City schools and companies.
• Fuel price trends and their effect on operating margins.