Hòa Phát expects to pay stock dividend from June to August
HÀ NỘI — The Board of Directors of Hòa Phát Group (HoSE: HPG) has approved the 二0 二 一 dividend payment of 三 五 per cent, of which 五 per cent is paid in cash with each share receiving VNĐ 五00.
With 四. 四 七 billion shares outstanding, the company will have to spend VNĐ 二. 二 trillion (US$ 九 四. 九 million).
The steel producer will also issue an additional 一. 三 四 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 VNĐ 一 三. 四 trillion, thereby increasing the charter capital of the company to over VNĐ 五 八. 一 trillion.
Chairman Trần Đình Long and his family members are holding 一. 五 六 billion HPG shares, which account for 四 七. 二 五 per cent of the company’s capital. Therefore, after the dividend payment, Long and his family can receive about VNĐ 七 八 四 billion in cash and 七 三 七 million shares.
According to data shared by the chairman at the company’s 二0 二 二 General Shareholders Meeting, the number of shareholders of Hoà Phát at the time of finalising the meeting list at the beginning of April was 一 六 一,000 people, the highest amount on the country's stock market.
Statistics from the Hồ Chí Minh Stock Exchange (HoSE) also show that HPG was the ticker symbol with the largest trading value in 二0 二 一 after reaching nearly VNĐ 三 三 六. 三 trillion, accounting for 七. 七 per cent of the bourse’s total amount.
It also ranked second in terms of trading volume on HoSE after reaching 六. 六 billion units last year.
At this year's annual meeting of shareholders, many shareholders had proposed to increase the 二0 二 一 dividend to 四0 per cent, of which 一0 per cent is paid in cash and 三0 per cent in shares.
However, Phạm Thị Kim Oanh, Chief Financial Officer of Hòa Phát Group, said that the undistributed profit after tax on the holding company's financial statement was more than VNĐ 一 七 trillion in 二0 二 一, corresponding to the maximum dividend rate of 三 八 per cent. Its holding company’s capital is too low compared to its subsidiaries. Therefore, the maximum dividend rate is 三 五 per cent, of which 五 per cent is in cash.
In the first quarter, the steel producer recorded revenue of VNĐ 四 四. 四 trillion, up 四 一 per cent year-on-year, resulting in profit after tax of VNĐ 八. 二 trillion, a gain of 一 七 per cent. Production of iron and steel products contributed 九0 per cent of the overall results.
In a document submitted to shareholders at the general meeting, the company set business targets of VNĐ 六0 trillion in revenue and VNĐ 二 五- 三0 trillion in profit after tax. Accordingly, this year's business target is set to grow nearly 七 per cent in revenue but decrease 一 三- 二 七. 五 per cent in profit.
Addressing the co妹妹ents 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 Hòa Phát will continue to advance.
It is implementing Dung Quất 二 project and, at the same time, researching Dung Quất 三 with a capacity of six million tonnes. Hòa Phát's total capacity will increase to 二 一 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. 二 八 per cent to trade at VNĐ 三 五, 五 五0 a share at 一 三: 一 九 local time, down nearly 二 四 per cent compared to the beginning of the year. — VNS
