Hoa Sen Group Plans Near VND 2,000 Billion Capital Injection to Maintain 99% Stake in Hoa Sen Home Amid Solid Financial Performance

Ho Chi Minh City — In a strategic move to reinforce its retail distribution footprint, CTCP Tập đoàn Hoa Sen (Hoa Sen Group, HoSE: HSG) has officially approved a resolution to exercise its rights to purchase additional shares in its retail subsidiary, CTCP Hoa Sen Home. The transaction, slated to require nearly VND 2,000 billion, is designed to ensure that the parent conglomerate maintains its commanding 99% ownership stake in the rapidly expanding home improvement and building materials retail chain.

The decision underscores Hoa Sen Group’s long-term commitment to diversifying its revenue

streams, strengthening its domestic retail dominance, and steering its proprietary retail ecosystem through a pivotal phase of corporate expansion.

Strategic Capital Allocation for Retail Dominance

According to the approved corporate resolutions, Hoa Sen Home plans to issue and offer 200 million new shares to its existing shareholders. Seizing the lion’s share of this offering, Hoa Sen Group has formally registered to acquire 198 million shares. With an offering price fixed at VND 10,000 per share, the total capital outlay for the parent group will reach an impressive VND 1,980 billion.

Established in January 2026 with an initial charter capital of VND 1,000 billion, Hoa Sen Home was structured from its inception as a cornerstone subsidiary under the Hoa Sen corporate umbrella. At its founding, Hoa Sen Group held a 99% stake in the charter capital, while key executives—Mr. Lê Phước Vũ and Mr. Nguyễn Ngọc Huy—held minority stakes of 0.99% and 0.01%, respectively.

Should the share issuance be fully subscribed and completed, Hoa Sen Home’s charter capital will surge from VND 1,000 billion to VND 3,000 billion. By fulfilling its subscription commitment in full, Hoa Sen Group will successfully preserve its dominant 99% ownership proportion, effectively cementing its strategic control over the subsidiary’s operational direction, financial scaling, and market execution capabilities.

Corporate Calendar and Upcoming General Meeting

Alongside the capital injection plan for its retail subsidiary, the leadership of Hoa Sen Group has greenlit preparations for the upcoming Annual General Meeting (AGM) of shareholders for the 2026–2027 financial year.

According to the official schedule, the AGM is slated to take place on March 16, 2027, in Ho Chi Minh City. To ensure broad shareholder participation, the company has set December 8, 2026, as the final registration date—commonly known as the ex-dividend or record date—for shareholders to exercise their rights to attend and vote at the meeting.

Market analysts anticipate that the upcoming AGM will serve as a crucial platform for the board of directors to outline the broader strategic roadmap for the 2026–2027 cycle, providing transparency regarding the capital deployment into Hoa Sen Home and shedding light on broader macroeconomic strategies amid a shifting industrial landscape.

Financial Performance: Resilience Amid Mixed Results

The capital intensification in Hoa Sen Home comes on the heels of the release of Hoa Sen Group’s consolidated financial statements for the fourth quarter of the 2025–2026 financial year, covering the period from July 1, 2026, to September 30, 2026.

During the final quarter of the fiscal year, Hoa Sen Group demonstrated robust top-line growth, recording net revenues of nearly VND 10,384.4 billion. This figure represents a notable 24% increase compared to the corresponding period in the previous year. However, the bottom-line metrics reflected ongoing pressures from operating costs and market competition, with net profit standing at slightly under VND 55 billion, marking a 34% decline year-on-year.

Looking at the full 2025–2026 financial year in aggregate, Hoa Sen Group achieved cumulative net revenues of approximately VND 37,736 billion, registering a modest 3% growth compared to the prior fiscal period. Meanwhile, full-year profit after tax reached nearly VND 624 billion, representing a 15% decrease.

Despite the contraction in net profits, the group’s performance successfully surpassed the internal targets set at the beginning of the fiscal year. Entering the 2025–2026 period, Hoa Sen Group’s management established business plans structured around dual scenarios. Under its highest-ambition scenario, the conglomerate targeted net revenues of VND 37,000 billion and a profit after tax of VND 600 billion.

The actual fiscal results indicate that Hoa Sen Group successfully outperformed these benchmarks, exceeding its net revenue target by 2% and surpassing its profit after tax objective by 4%. This performance illustrates management’s ability to navigate volatile commodity cycles and sustain operational stability.

Stock Market Context and Valuation

On the domestic stock exchange, investor sentiment toward HSG shares has remained relatively stable in light of the group’s operational updates and corporate maneuvers. At the close of the trading session on November 10, 2026, HSG shares settled at VND 10,900 per share. At this market price, Hoa Sen Group boasts a total market capitalization of approximately VND 8,799 billion, positioning it as a prominent player within Vietnam’s industrial and materials sector.

The pricing of Hoa Sen Home’s shares at VND 10,000 per share—aligning with standard par value—coupled with the parent company’s steady market valuation, reflects a calculated effort to internalize capital growth without imposing undue dilution or valuation strains on the broader group structure.

Implications of the Retail Expansion Strategy

The decision to channel nearly VND 2,000 billion into Hoa Sen Home highlights a structural pivot within Hoa Sen Group. While traditionally recognized as a dominant force in steel manufacturing, sheet metal production, and pipe distribution, the group has increasingly turned its focus toward building materials and interior retail franchising through the Hoa Sen Home network.

By elevating Hoa Sen Home’s charter capital to VND 3,000 billion, the subsidiary gains the financial muscle necessary to accelerate its nationwide store expansion, optimize supply chain logistics, enhance inventory management, and strengthen its competitive positioning against domestic and international home improvement rivals.

Industry experts note that as Vietnam’s real estate market transitions through recovery phases and urbanization continues apace, structured modern retail networks for building materials possess significant long-term growth potential. By consolidating its 99% stake, Hoa Sen Group ensures that it captures the entirety of the future upside generated by its retail division, insulating its core business model against cyclical downturns in traditional steel export and manufacturing markets.

As the corporate calendar moves toward the registration deadline for the AGM in December and the ultimate meeting in March 2027, all eyes will remain fixed on how Hoa Sen Group executes its capital deployment and charts its course for the next era of industrial and retail convergence.