Hoa Phat (HPG) pays dividends in shares, rate 20%

VHO - Hoa Phat Group (stock code: HPG) said that on June 27, it will close the list of shareholders to pay 2024 dividends in shares.

Hoa Phat plans to issue nearly 1.28 billion new shares to pay dividends to shareholders. Photo: Hoa Phat

Specifically, Hoa Phat plans to issue nearly 1.28 billion new shares to pay dividends to existing shareholders at a rate of 20%, equivalent to shareholders owning 10 shares will receive 2 new shares.

The source of implementation is from undistributed profit after tax on the audited financial report of 2024. After the issuance, Hoa Phat's charter capital will increase to VND 76,755 billion.

According to Hoa Phat, paying dividends entirely in shares is to ensure a safe cash flow against world fluctuations, especially the US's reciprocal tax policy.

Initially, Hoa Phat planned to pay dividends in 2024 at a rate of 5% in cash and 15% in shares. However, at the recent annual meeting, the Board of Directors adjusted the plan, agreeing to pay all dividends in shares at a rate of 20%.

Explaining this decision, Mr. Tran Dinh Long - Chairman of the Board of Directors of Hoa Phat - said that the Company was forced to switch to a defensive state after receiving information about tariff fluctuations from the beginning of April. According to Mr. Long, in the context of the market still having many uncertainties, the plan to pay dividends entirely in shares is a way to retain resources and ensure financial security for long-term investment plans.

This is the second consecutive year that Hoa Phat has not paid cash dividends. Previously, in 2023, the Group also only paid dividends in shares, partly due to the difficult context of the steel industry and the Company prioritizing resources for the Hoa Phat Dung Quat 2 Iron and Steel Complex project.

Despite adjusting the 2024 dividend plan, Hoa Phat's Board of Directors remains optimistic about the medium- and long-term prospects. Chairman Tran Dinh Long said that if market conditions are favorable and there are no unexpected fluctuations, the Company will consider returning to the traditional dividend policy from 2026 - 2027, including cash.

Regarding business performance, at the end of the first quarter of 2025, Hoa Phat achieved more than 37,950 billion VND in revenue, an increase of more than 22% over the same period last year; after-tax profit reached approximately 3,350 billion VND, an increase of 16.8% over the same period. Thus, with the 2025 plan of 170,000 billion VND in revenue and 15,000 billion VND in after-tax profit, at the end of the first quarter, Hoa Phat completed 22.3% of the set targets.

Source: https://baovanhoa.vn/kinh-te/hoa-phat-hpg-chia-co-tuc-bang-co-phieu-ti-le-20-140344.html