Hoa Phat (HPG) expects to pay stock dividend from June to August

Jun 1st at 21:51
01-06-2022 21:51:23+07:00

Hoa Phat (HPG) expects to pay stock dividend from June to August

The Board of Directors of Hoa Phat Group (HoSE: HPG) has approved the 2021 dividend payment of 35 per cent, of which 5 per cent is paid in cash with each share receiving VND500.


With 4.47 billion shares outstanding, the company will have to spend VND2.2 trillion (US$94.9 million).

The steel producer will also issue an additional 1.34 billion shares to pay the remaining dividend.

The source of capital is taken from the retained profit after tax on last year’s audited financial statements. The issuance date is expected from June to August of this year.

The total value at par value is VND13.4 trillion, thereby increasing the charter capital of the company to over VND58.1 trillion.

Chairman Tran Dinh Long and his family members are holding 1.56 billion HPG shares, which account for 47.25 per cent of the company’s capital. Therefore, after the dividend payment, Long and his family can receive about VND784 billion in cash and 737 million shares.

According to data shared by the chairman at the company’s 2022 General Shareholders Meeting, the number of shareholders of Hoa Phat at the time of finalising the meeting list at the beginning of April was 161,000 people, the highest amount on the country's stock market.

Statistics from the Ho Chi Minh Stock Exchange (HoSE) also show that HPG was the ticker symbol with the largest trading value in 2021 after reaching nearly VND336.3 trillion, accounting for 7.7 per cent of the bourse’s total amount.

It also ranked second in terms of trading volume on HoSE after reaching 6.6 billion units last year.

At this year's annual meeting of shareholders, many shareholders had proposed to increase the 2021 dividend to 40 per cent, of which 10 per cent is paid in cash and 30 per cent in shares.

However, Pham Thi Kim Oanh, Chief Financial Officer of Hoa Phat Group, said that the undistributed profit after tax on the holding company's financial statement was more than VND17 trillion in 2021, corresponding to the maximum dividend rate of 38 per cent. Its holding company’s capital is too low compared to its subsidiaries. Therefore, the maximum dividend rate is 35 per cent, of which 5 per cent is in cash.

In the first quarter, the steel producer recorded revenue of VND44.4 trillion, up 41 per cent year-on-year, resulting in profit after tax of VND8.2 trillion, a gain of 17 per cent. Production of iron and steel products contributed 90 per cent of the overall results.

In a document submitted to shareholders at the general meeting, the company set business targets of VND60 trillion in revenue and VND25-30 trillion in profit after tax. Accordingly, this year's business target is set to grow nearly 7 per cent in revenue but decrease 13-27.5 per cent in profit.

Addressing the comments regarding the company’s gloomy outlook, Long said that shareholders will see the difficulties of the steel industry after the business results of the second, and third quarter, and the whole year, so the company leaders must set cautious goals. This year's plan is considered challenging.

However, in the long term, the chairman who is also the largest company shareholder is confident that Hoa Phat will continue to advance.

It is implementing Dung Quat 2 project and, at the same time, researching Dung Quat 3 with a capacity of six million tonnes. Hoa Phat's total capacity will increase to 21 million tonnes, equivalent to the country’s current steel consumption demand.

On the stock market, HPG shares extended their recent rallies on Monday with a gain of 0.28 per cent to trade at VND35,550 a share at 13:19 local time, down nearly 24 per cent compared to the beginning of the year. 




Banks (ACB)  to pay dividends ahead of annual meetings

Shareholders are now focusing on news about bank dividends, especially as banks have been doing well throughout the past year despite the COVID-19 pandemic.

Phat Dat (PDR) plans to pay 36.3 per cent dividends

Phat Dat Real Estate Development Corporation will organise the annual general meeting of shareholders on March 26, expecting to approve relevant proposals to the...

Sabeco (SAB) expected to earn more than US$176 mln from cash dividend

Holding nearly 7.4 million shares of WSB, Sabeco is expected to receive dividends of more than VND11 billion (US$176.2 million) in the first phase of 2021 from...

Masan Group (MSN) increases 2021 cash dividend by 20%, plans for 5:1 bonus share issuance

Masan Group Corporation (HOSE: MSN) on December 3 announced an increase in its cash dividend for the 2021 financial year by 20 per cent to VND1,200 per share.

Largest brewery firm (SAB) to pay cash dividend

Sai Gon Beer-Alcohol-Beverage Corporation (Sabeco) will pay its first cash dividend for the 2020 financial year on December 18.

HDBank (HDB) to pay 2nd dividend for 2019 in shares, increase capital to $693.7 million

Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) has announced November 30 will be the record date for paying final dividend for 2019 in the form...

Becamex IDC (BCM) to pay 4% cash dividend for 2019

Investment and Industrial Development Joint Stock Corporation (Becamex IDC) will finalise the list of shareholders to enjoy a 4 per cent cash dividend scheduled for...

Vinamilk (VNM) to pay $150-million dividend shares

The Vietnam Dairy Products Joint Stock Company (Vinamilk) will issue more than 348 million dividend shares at a ration of 20 per cent.

Seafood firm Vinh Hoan to pay dividend in shares

The Dong Thap Province-based Vinh Hoan Company (VHC), the largest tra fish exporter in Viet Nam, plans to issue nearly 91 million shares to pay a 2019 dividend.

Transimex (TMS) to pay dividend at rate of 25 per cent

Transimex Corporation (TMS) plans to pay 2018 dividends in cash and shares with a ratio of 25 per cent, of which 10 per cent is in cash and 15 per cent in shares.


Back To Top