300,000 Shareholders — and the Numbers That Need Questioning
By the numbers, Hoa Phat stands in a position many companies would envy: nearly 300,000 shareholders — a Dân Việt, up 50% from the previous year. On April 21, 2026, all eyes will turn to the Annual General Meeting at Melia Hanoi.
The agenda is packed with hot-button issues: a 42% profit growth target, a cash dividend pledge after years of absence, and executive compensation that jumped 5x. What stands out — each number tells a different story.
2026 Plan: 210 Trillion VND Revenue, 22 Trillion VND Profit — Ambitious or Achievable?
Hoa Phat targets approximately 210 trillion VND in revenue and 22 trillion VND in net profit for 2026 — representing 33% revenue growth and 42% profit growth over 2025.VietTimes
The foundation for this ambition is the 2025 result: revenue reached 158.3 trillion VND, net profit 15.5 trillion VNDCafeF, up 29% year-over-year and exceeding the plan by 3%. This was the first year Hoa Phat’s revenue surpassed the 150 trillion VND mark, breaking its 2021 record.
The primary growth driver is the completed Dung Quat 2 integrated complex, raising total crude steel capacity to 15.1 million tons per year. If anti-dumping duties on HRC are imposed, Hoa Phat’s domestic HRC market share could rise from 31% to 48%Elibook — a significant leap.
Q1/2026: 23% Growth — But Only 19% of the Annual Target
Estimated Q1/2026 net profit reached approximately 4,100 billion VND — up 23% year-over-year.Elibook The number sounds positive, but the full-year picture tells a different story.
Against the 22 trillion VND target, Q1 completed only about 19%. The remaining three quarters must average nearly 6,000 billion VND each — a 46% increase from Q1’s pace. Input cost pressure is the primary culprit: coking coal prices have risen over 30 USD per ton since late 2025, adding approximately 185,000 VND to the production cost of each ton of steel.
Additionally, cheap Chinese steel continues flooding the domestic market, particularly in the HRC segment — the very segment where Hoa Phat expects to gain market share.
Executive Pay: 28 Billion VND in 6 Months — Nearly 5x the Entire Previous Year
A notable detail in the pre-AGM report: executive compensation. According to DNSE, in just the first half of 2025, three board of directors members — CEO Nguyen Viet Thang and two Deputy CEOs — received a combined 28.2 billion VND, nearly 5 times the total compensation for all of 2024.
Looking at the numbers fairly: in 2025, Hoa Phat earned over 15.5 trillion VND in profit, up 29%. Management has the right to be rewarded when the company is profitable. However, the rate of compensation increase (5x, equivalent to 500%) far outpaced profit growth (29%) — a 17x gap. This will undoubtedly be a heated topic at the AGM.
One point worth noting: in 2022, during the steel industry downturn, the entire board of directors received zero compensation. The performance-linked pay mechanism exists, though the calibration remains questionable.
Cash Dividends: A Promise Broken Three Times
Chairman Tran Dinh Long has repeatedly pledged cash dividends. At the 2025 AGM, he promised cash dividends starting from 2026Thời báo TCVN. But the planned 5% cash dividend for 2024 was canceledCafeF, replaced with a 20% stock dividend, citing “caution regarding US reciprocal tariff policy.”
In 2025, Hoa Phat again paid dividends in stock: issuing approximately 767 million new shares (10% ratio), raising charter capital to around 84.4 trillion VND. The continuous issuance of stock instead of cash has left many shareholders concerned about value dilution.
What Should Investors Watch at the April 21 AGM?
With nearly 300,000 shareholders — the majority being retail investors — every decision at the April 21 AGM carries broad impact. Three key points to monitor:
- Concrete cash dividend commitment for 2026 — Will Long keep his word this time?
- Executive compensation justification — The bonus mechanism needs greater transparency, tied to specific performance metrics.
- Dung Quat 2 operational roadmap — This is the variable that determines whether the 42% target is achievable.
The 22 trillion VND profit target is not impossible, but it requires stable steel prices, no sudden input cost spikes, and Dung Quat 2 reaching optimal capacity. With the global steel industry still struggling through a difficult period, expectations must be tempered with caution.
