Initially, SMA planned to distribute a 3.5% cash dividend (VND350 per share), with the record date set for May 15 and the payment date for May 27.
With nearly 20.4 million shares outstanding, SMA will need to spend more than VND7.1 billion on this dividend payment, sourced from its undistributed post-tax profit in 2023.
 Source: SMA
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Looking back, the last time SMA paid a cash dividend was in April 2019, with a 2% dividend for 2018. In previous years, SMA had been paying dividends quite regularly.
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SMA‘s Dividend History
Source: VietstockFinance
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Regarding its business performance, in Q1/2024, SMA reported a net loss of nearly VND8.2 billion, higher than the VND5.2 billion loss in the same period of 2023.
According to SMA, the Company’s main business is power generation, which heavily relies on climate and weather conditions. In Q1, the water flow into the reservoir averaged only 1.28 cubic meters per second, lower than the average of 1.72 cubic meters per second in the same period last year.
Power generation output in Q1 was over 1.5 million kWh, equivalent to nearly 79% of the same period last year; electricity revenue was over VND4 billion, down 22%; financial expenses were VND4.6 billion, 3.3 times higher.
With this loss, SMA‘s accumulated undistributed post-tax profit as of the end of Q1/2024 was a loss of over VND8 billion. This result is probably part of the reason why SMA no longer has enough resources to pay dividends as planned.
| SMA‘s Undistributed Post-tax Profit Turned Negative After Q1/2024 Loss |
Saigon Machinery and Equipment JSC, formerly a state-owned enterprise named Southern Metal Equipment Company, was established in 1974. The Company switched to operating under the JSC model from 2005. On October 19, 2010, the Company officially began trading on the Hochiminh Stock Exchange (HOSE) under the code SMA.
SMA is currently operating the Dak Glun hydropower plant located in Bu Dang district, Binh Phuoc province. The plant has a capacity of 18 MW and a designed output of 75.81 million kWh/year.
 Dak Glun Hydropower Plant in Bu Dang District, Binh Phuoc Province
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