MSR Plans Cash Dividend as Deleveraging Progress Outpaces Expectations

Masan High-Tech Materials (MSR) is proposing an interim cash dividend for 2026 equivalent to 10% of par value, or VND 1,000 per share. The proposal comes as the company reports a sharp improvement in profit, stronger cash flow and faster-than-expected progress in reducing financial leverage.

Strong Profit Growth, Faster Deleveraging

On August 12, 2026, Masan High-Tech Materials Corporation (HNX-UpCOM: MSR) announced that its Board of Directors had approved a plan to seek shareholders’ written approval for an interim cash dividend for 2026.

Under the proposal, subject to shareholder approval, MSR will pay VND 1,000 per share, equivalent to 10% of par value. The total payout is expected to reach approximately VND 1.1 trillion, equivalent to 50% of the company’s profit after tax (NPAT) for the first six months of 2026. Based on MSR’s share price of VND 38,000 per share, the annualized dividend yield is approximately 5%.

The record date for the shareholder consultation, the final registration date and the dividend payment date will be determined and announced in accordance with applicable regulations.

The proposed dividend comes after a significant improvement in MSR’s business performance. In the first six months of 2026, the company recorded VND 2.202 trillion in profit after tax before minority interests (NPAT Pre-MI), compared with a loss of VND 216 billion in the same period of 2025.

This result represents approximately 88% of the upper end of the company’s full-year 2026 profit guidance. If current market conditions remain favorable through the end of the year, MSR’s management expects profit to significantly exceed the upper end of its 2026 plan, providing a stronger basis for maintaining a dividend policy in the years ahead.

Notably, the dividend proposal comes as MSR continues to accelerate its deleveraging efforts. Net Debt/EBITDA fell to 2.1x at the end of the second quarter of 2026, marking a significant improvement.

Even after taking into account the proposed dividend of approximately VND 1.1 trillion, the company expects its year-end Net Debt/EBITDA ratio to be significantly better than its previously announced target of approximately 1.7x. MSR also remains on track to achieve a net cash position in 2027.

The dividend proposal therefore does not represent a shift away from strengthening the balance sheet. Rather, it reflects the company’s stronger cash generation and faster-than-expected debt reduction.

Danny Le, Chairman of Masan High-Tech Materials, said: “MSR is a strategic materials platform with an important position in the global supply chain of critical minerals. We have begun generating positive cash flow, reducing debt faster than planned, and are now proposing to share this progress with shareholders through a dividend, while continuing to work toward achieving a net cash position.”

From Financial Improvement to Shareholder Value

The proposed dividend is significant not only for the expected payout, but also as an indication of the improvement in MSR’s financial health.

After a period focused on strengthening operations, improving cash flow and reducing debt, the company is gradually moving toward a more balanced phase: continuing to reinforce its financial foundation while beginning to share the benefits of improved performance with shareholders.

This approach is also consistent with Masan Group’s capital allocation philosophy: each business unit is expected to self-fund its growth, strengthen its financial foundation and, once sustainable profitability is achieved, gradually share the benefits with shareholders.

As global attention increasingly focuses on the security of critical mineral supplies, MSR’s strategic position is becoming more significant. The company is currently the world’s largest producer of downstream and near-downstream tungsten products outside China, operating the Nui Phao polymetallic mine and a modern tungsten processing facility in Thai Nguyen Province, Vietnam.

Tungsten is a critical material for a wide range of industries, including electronics, chemicals, automotive, aerospace, energy and pharmaceuticals. In addition to tungsten, Masan High-Tech Materials is also a leading global producer of fluorspar and bismuth.

If approved by shareholders, the approximately VND 1.1 trillion dividend would represent an important first step in demonstrating MSR’s ability to translate improved business performance and financial restructuring into direct value for shareholders, while maintaining resources for long-term growth.

With the goal of achieving a net cash position in 2027, MSR’s priorities going forward will extend beyond profit growth to include maintaining strong cash flow, controlling leverage and improving capital efficiency. These factors will also provide the foundation for a sustainable dividend policy to become an increasingly important part of the company’s long-term growth story.