Foreign investors keep unloading shares of Vietnam steel major Hoa Phat

By Quang Minh
Tue, August 27, 2024 | 9:25 am GMT+7

Foreign shareholders have been net selling shares of Vietnam’s top steelmaker Hoa Phat Group (HoSE: HPG) over the past three months amid the firm’s pressures both domestically and overseas.

On Monday, foreign players net sold 5.7 million HPG shares worth VND149 billion ($6 million), marking the 14th consecutive net unloading day.

The ticker HPG ended down 0.2% at VND26,000 ($1.05) a share on Monday.

Workers of Hoa Phat Group. Photo courtesy of the company.

Workers of Hoa Phat Group. Photo courtesy of the company.

So far this month, they have sold 67.4 million HPG shares worth VND1,736 billion ($69.92 million), according to exchange data. The amount is equivalent to 1.05% of total outstanding shares.

Since June, foreign investors have net sold 117.3 million HPG shares, valued at VND3,168 billion ($127.37 million). During this three-month period, the stock lost 13% from the VND30,000/share zone, equivalent to a decline of VND25,600 billion ($1.03 billion) in market cap.

The foreign investors’ selling force and the fall in the HPG market price coincide with antidumping investigations into the company’s hot-rolled coil (HRC) products in major markets like the EU, India and possibly Australia.

Meanwhile, at home, Hoa Phat is losing ground to cheaper HRC imports from China and India. The Vietnamese trade ministry has announced the official launch of an antidumping probe into HRC products from those two markets at HPG’s petition.

According to BSC Research, if the ministry levies an antidumping tariff, Hoa Phat and Taiwan’s Formosa Ha Tinh can raise their domestic output by 1.5-3 million tons.

Hoa Phat’s Dung Quat 2 steel mill, with an annual capacity of 5.6 million tons of HRC, is expected to come online in Q1/2025. Between April and June, the group injected VND15,584 billion ($618.3 million) into the project.

Worse still, HRC prices now hover around $672 a ton, down 39% so far this year and two-thirds from their peak in September 2021.

Hoa Phat earned a consolidated net profit of VND6,190 billion ($245.6 million) in H1/2024, a 3.33-fold increase year-on-year, according to its financial statements. Its revenue rose 25.5% to VND70,408 billion ($2.84 billion).

This year, the group aims for a net profit of VND10 trillion ($402 million) on revenue of VND140 trillion.

Once the Dung Quat 2 mill is operational, the group’s revenue is estimated to reach VND200 trillion ($8 billion), and the steel business will likely account for 95% of its revenue, up from 85-90% currently.

Comments (0)
  • Read More
Vietnam’s army-backed construction firm proposes 14 offshore wind power projects

Vietnam’s army-backed construction firm proposes 14 offshore wind power projects

Lung Lo Construction Corporation (LLC), under the Ministry of National Defense, has submitted investment proposals for 14 offshore wind power projects with a combined capacity of 9,000 MW.

Energy - Thu, August 7, 2025 | 5:07 pm GMT+7

Vietnam's agri major Hoang Anh Gia Lai fined for bond information disclosure failure

Vietnam's agri major Hoang Anh Gia Lai fined for bond information disclosure failure

Vietnam's agri major Hoang Anh Gia Lai JSC has been fined VND92.5 million ($3,528) for failing to disclose bond-related information as required by law.

Companies - Thu, August 7, 2025 | 4:31 pm GMT+7

Northern Vietnam province accelerates $2.2 bln LNG-to-power project

Northern Vietnam province accelerates $2.2 bln LNG-to-power project

Quang Ninh province will hand over 4.9 hectares of reclaimed land to the Quang Ninh LNG-fuelled power plant project before August 11, local authorities stated at a meeting on Wednesday.

Energy - Thu, August 7, 2025 | 4:17 pm GMT+7

Vietnam's seafood firms ride profit wave ahead of US tariff hike

Vietnam's seafood firms ride profit wave ahead of US tariff hike

Vietnam’s seafood companies reported surging profits in Q2/2025, driven by importers ramping up purchases ahead of new U.S. reciprocal tariffs.

Economy - Thu, August 7, 2025 | 2:21 pm GMT+7

Le Anh Tuan appointed new CEO of Dragon Capital Vietfund Management JSC

Le Anh Tuan appointed new CEO of Dragon Capital Vietfund Management JSC

Dragon Capital Group, Vietnam's largest asset manager, has appointed Le Anh Tuan as CEO of its arm Dragon Capital Vietfund Management Joint Stock Company (DCVFM), starting from October 1, 2025.

Companies - Thu, August 7, 2025 | 2:01 pm GMT+7

Indonesia, Malaysia, Thailand expand local currency transaction network

Indonesia, Malaysia, Thailand expand local currency transaction network

Bank Indonesia, Bank Negara Malaysia, and Bank of Thailand have added new Appointed Cross Currency Dealer (ACCD) participating banks to broaden services for bilateral transactions in local currencies across the three nations, Bank Indonesia said in a statement on Tuesday.

Southeast Asia - Thu, August 7, 2025 | 12:48 pm GMT+7

ASEAN to sign MoU on regional power grid implementation

ASEAN to sign MoU on regional power grid implementation

ASEAN member states are set to sign an MoU on the implementation of the ASEAN Power Grid during the bloc’s Energy Ministers’ Meeting this October.

Southeast Asia - Thu, August 7, 2025 | 12:43 pm GMT+7

Vietnam overtakes Thailand to become world's second-largest rice exporter

Vietnam overtakes Thailand to become world's second-largest rice exporter

Vietnam has outranked Thailand as the world’s second-largest rice exporter in the first half of 2025, Thai PBS reported on August 3, citing the Thai Rice Exporters Association.

Companies - Thu, August 7, 2025 | 12:41 pm GMT+7

Vietnam posts trade surplus of $10.18 bln in 7 months

Vietnam posts trade surplus of $10.18 bln in 7 months

Vietnam’s export earnings grew by 14.8% to $262.44 billion in the first seven months of this year, while its import turnover rose by 17.9% to $252.26 billion, resulting in a trade surplus of $10.18 billion.

Economy - Thu, August 7, 2025 | 12:19 pm GMT+7

Malaysia pledges big purchases, investments with US

Malaysia pledges big purchases, investments with US

Malaysia has agreed to buy and invest over $240 billion (MYR1.02 trillion) in the U.S. to help reduce the trade gap between the two countries.

Southeast Asia - Thu, August 7, 2025 | 12:08 pm GMT+7

Vietnam's leading property developer Novaland to issue 152 mln shares to settle $229 mln debt

Vietnam's leading property developer Novaland to issue 152 mln shares to settle $229 mln debt

Novaland, a major real estate developer in Vietnam, plans to issue nearly 152 million new shares to swap more than VND6 trillion ($228.8 million) worth of bond principal.

Companies - Thu, August 7, 2025 | 10:11 am GMT+7

Vietnam's FDI capital disbursement hits five-year record high despite US tariff turmoil

Vietnam's FDI capital disbursement hits five-year record high despite US tariff turmoil

Disbursed foreign direct investment (FDI) capital in Vietnam reached $13.6 billion in Jan-July, up 8.4% year-on-year, despite U.S. tariff concerns.

Economy - Thu, August 7, 2025 | 9:57 am GMT+7

Malaysia steps up efforts to explore nuclear energy potential

Malaysia steps up efforts to explore nuclear energy potential

Malaysia’s Minister of Science, Technology and Innovation Chang Lih Kang on Wednesday reaffirmed his ministry’s commitment to enhancing cooperation with the Ministry of Energy Transition and Water Transformation (PETRA) in exploring the potential of nuclear energy.

Southeast Asia - Thu, August 7, 2025 | 8:10 am GMT+7

Indonesia's economy grows faster than expected

Indonesia's economy grows faster than expected

Indonesia's economy expanded by 5.12% year-on-year in Q2/2025, up from 4.87% in the previous quarter, exceeding the forecasts of many economic organizations, which had previously projected a rate of less than 5%, according to Statistics Indonesia (BPS).

Southeast Asia - Thu, August 7, 2025 | 8:07 am GMT+7

Philippine energy group eyes investment in Vietnam’s power sector

Philippine energy group eyes investment in Vietnam’s power sector

AboitizPower wants to invest in Vietnam’s electricity industry, especially in transmission infrastructure, said Danel Aboitiz, executive director of the corporation.

Energy - Wed, August 6, 2025 | 11:11 pm GMT+7

Vietnam seeks 8.3-8.5% economic expansion for 2025

Vietnam seeks 8.3-8.5% economic expansion for 2025

The Government has requested the State Bank of Vietnam to proactively adjust the credit growth aim for this year in line with a GDP expansion target of 8.3-8.5%.

Economy - Wed, August 6, 2025 | 10:41 pm GMT+7