A leading Vietnamese manufacturer of motorcycle and automobile components, known for supplying key parts to major global brands including Honda, Yamaha, and Piaggio, has seen its stock price soar to an all-time high amid strong business performance and a generous shareholder payout announcement.

Dong Anh Chain and Sprocket Joint Stock Company announced that June 27, 2025, will serve as the record date to finalize the list of shareholders entitled to its 2024 cash dividend. The dividend is set at VND 3,240 per share, translating to a 32.4% payout ratio. With 11.4 million shares currently outstanding, the company will be disbursing nearly VND 37 billion in total to its shareholders. This payout represents the highest cash dividend declared in the last five years, underscoring the company’s strong profitability and commitment to shareholder returns.

A Legacy of Industrial Excellence

Established in 1974 and officially converted to a joint-stock company format in 2009, DFC has built a reputation as one of Vietnam’s most reliable manufacturers of metal components, mechanical parts, and auto-motorcycle accessories. Its facilities produce a wide array of components that are critical to vehicle assembly lines. The company has maintained long-term relationships with leading foreign-invested enterprises in the automotive sector.

DFC's clientele includes multinational heavyweights such as Honda, Yamaha, Piaggio, and other automotive manufacturers that operate assembly plants across Vietnam. These partnerships have provided DFC with a consistent stream of orders and a stable market base, even amid global supply chain disruptions.

Dividend History Reflects Financial Stability

DFC began paying cash dividends consistently starting in 2015, when it stunned the market with a record 45% payout ratio. Since then, the company has established a track record of shareholder-friendly policies, offering steady dividends even during challenging economic periods. Over the last three years, the dividend rate has been rising steadily, with this year's 32.4% being the highest since 2020.

This increasing dividend trend reflects not just management confidence but also the firm’s ability to generate strong operating cash flows, which supports both growth investment and returns to shareholders.

Revenue and Profit Soar in 2024

In terms of business performance, DFC posted revenue of VND 1,303 billion for the 2024 fiscal year, marking an 8% increase over the previous year. Net profit rose sharply to over VND 40 billion, up 29% year-on-year. The surge in profitability was driven by robust demand from major OEM clients and enhanced production efficiency.

For 2025, DFC has set even higher targets. The company forecasts revenue of VND 1,355 billion, representing a 4% year-on-year increase, and a net profit of nearly VND 46 billion, a 14% improvement over 2024. These projections indicate continued confidence in market demand and internal capabilities.

DFC’s management attributes this growth to expanded manufacturing capacity, better cost controls, and the deepening of strategic alliances with automotive giants. Additionally, the gradual recovery of consumer spending and increased motorcycle sales in Southeast Asia have provided favorable tailwinds.

Stock Price Hits All-Time High, But Liquidity Remains Low

DFC stock has seen a remarkable rally since the beginning of 2025. On June 17, shares jumped 9.3% in a single session, closing at VND 32,900 per share—its highest price in history. The surge followed the dividend announcement and positive earnings outlook, which together boosted investor sentiment.

Despite the price surge, DFC shares remain relatively illiquid, with an average daily trading volume of just 1,600 shares. This low liquidity may be due to the company’s concentrated shareholder structure or the limited free float on the public market. Analysts suggest that while the stock shows strong fundamentals, its limited liquidity could pose a challenge for institutional investors seeking large positions.

Strength in Core Business and Investor Confidence

DFC appears well-positioned to maintain its growth trajectory, given its solid customer base, operational discipline, and focus on quality. The management’s consistent approach to rewarding shareholders—through both dividend payments and business expansion—has earned it strong credibility among retail and institutional investors alike.

With Vietnam’s automotive and motorcycle market expected to expand in the coming years, especially as income levels rise and infrastructure improves, DFC is likely to remain a key beneficiary. Its proven relationships with leading automakers, coupled with a strategic focus on innovation and reliability, could further drive earnings and enhance shareholder value.

As of now, investors will be watching whether the stock’s price momentum can be sustained and whether liquidity will improve as more market participants take interest.