In its latest announcement, Hoá Phát Group Joint Stock Company (code: HPG) stated that June 27 will be the record date to finalize the list of shareholders for a 20% stock dividend, meaning that for every 5 shares held, investors will receive 1 new share. The ex-date is June 26.
With nearly 6.4 billion shares currently outstanding, Hoa Phat plans to issue approximately 1.28 billion new shares, equivalent to a par value of VND 12,793 billion. This issuance will be funded by undistributed post-tax profits from the 2024 audited financial statements.
Following this issuance, Hoa Phat’s charter capital is expected to increase to VND 76,755 billion, the highest among non-financial enterprises listed on the stock exchange. In fact, this number is only lower than a few top banks.
This issuance plan is in accordance with the resolutions of the 2025 Annual General Meeting of Shareholders. Accordingly, the Board of Directors approved a proposal to pay a 2024 dividend of 20% in shares (for every 5 shares held, investors will receive 1 new share).
This plan replaces the previous proposal of a 5% cash dividend and a 15% stock dividend, which was put forward by Hoa Phat in late March 2025.
The reason for Hoa Phat’s decision to pay the entire dividend in shares is to ensure the safety of its cash flow as a defensive measure against global fluctuations, especially the US tax policy.
According to the 2024 management report, Mr. Tran Dinh Long owns 1.65 billion HPG shares, equivalent to a 25.8% stake, making him the largest shareholder. Mr. Long’s wife, Mrs. Vu Thi Hien, holds 440 million HPG shares, or 6.88% of the capital. His son, Tran Vu Minh, holds nearly 147 million HPG shares (2.3% capital). Tran Vu Minh’s company, Dai Phong Trading and Investment Company, holds 3 million HPG shares (0.05% stake). In addition, Mr. Long’s four siblings also own a total of nearly 2.9 million shares (0.05% stake).
Thus, the total ownership percentage of Mr. Tran Dinh Long and related shareholders in Hoa Phat is over 35%. With this percentage, Mr. Long and related shareholders are expected to receive approximately 448 million HPG shares in the upcoming issuance.
In terms of business results, in the first quarter of 2025, Hoa Phat recorded revenue of over VND 37,900 billion and after-tax profit of VND 3,300 billion, up 22% and 16%, respectively, compared to the same period in 2024. In the first quarter of 2025, Hoa Phat completed about 22% of its annual revenue plan and 22% of its annual profit plan.
In the first quarter, the Hoa Phat Group produced 2.66 million tons of crude steel, up 25% over the same period. Sales volume of hot-rolled steel coils, high-quality steel, construction steel, and steel billets reached 2.38 million tons, up 29% compared to the first quarter of 2024.
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