Hoa Phat closes the right to pay 2021 dividend at the rate of 35%

Hoa Phat Group (HoSE: HPG) announced on June 20 that it has registered to make the final list of shareholders to pay dividends in 2021. The company will pay a cash dividend of 5%, 1 share will receive 500 VND. and pay 30% shares, 10 old shares will receive 3 new shares.

With more than 4.47 billion shares outstanding, Hoa Phat will spend 2,235 billion dong to pay cash dividend, payment date 6/7. At the same time, the company will issue an additional 1.34 billion shares to pay dividends, charter capital is expected to increase to 58,120 billion dong.

With 1.57 billion shares owned by HPG (accounting for 35% of capital), Mr. Tran Dinh Long – Chairman of the Board of Directors and his family can receive 785 billion VND and 469 million shares.

In 2021, thanks to the favorable industry context, the group recorded VND 149,680 billion in revenue, up 66% compared to 2020; profit after tax reached 34,521 billion dong, 2.6 times higher. With this result, the Board of Directors proposed and was approved by shareholders to pay the rate of 35%, including 5% in cash and 30% in shares.

At the end of last year, the group had 41,763 billion dong of after-tax profit, 923 billion dong of investment and development fund and 3,212 billion dong of share premium while charter capital was 44,729 billion dong.

This year, Hoa Phat sets a revenue target of VND 160,000 billion, up 7%; profit after tax from VND 25,000 billion to VND 30,000 billion, down from 13% to 27.5% compared to the implementation in 2021.

At the Annual General Meeting of Shareholders, the Chairman of the Board of Directors assessed this as a challenging plan. Because the steel industry is entering a difficult period, the business results of the second, third and whole year will be “catastrophic”.

In the first quarter, in the context of many steel enterprises reporting a serious decrease in profits, Hoa Phat still recorded growth when it reached VND 8,206 billion in profit after tax, up 17% over the same period last year. The reason is due to increased crude steel consumption, cost and selling prices are good.

According to Tuong Nhu