Vietnam steel giant Hoa Sen reaps $77,000 in daily profit

Hoa Sen Group (HoSE: HSG), one of the leading steelmakers in Vietnam, recorded a consolidated post-tax profit of VND371 billion ($14.28 million) in the first half (October 1, 2024 to March 31, 2025) of its fiscal year.

The figure is equivalent to 74% of its high-case profit projection, according to the company's consolidated financial report.

This means Hoa Sen earned an average of over VND2 billion (about $77,000) in after-tax profit per day.

In the six-month period, Hoa Sen recorded a total output of 946,648 tons, fulfilling 49% of its full-year target. Its consolidated revenue reached VND18,674 billion ($719.47 million), completing 53% of the year's plan.

In Q1/2025, or Q2 of the fiscal year, Hoa Sen reported an output of 432,919 tons, consolidated revenue of VND8,452 billion ($325.64 million), and consolidated after-tax profit of VND205 billion ($7.89 million).

Compared to Q1 of the fiscal year, the group saw improvements, with gross profit margin rising to 12.7% from 11.8%, reflecting enhanced production cost optimization and improved product value.

Financial expenses fell 8%, equivalent to VND4 billion ($154,112), as short-term debt was cut from VND5,364 billion to VND3,532 billion ($136.08 million) which reflects an efficient and prudent financial management strategy.

Selling expenses declined 13%, from VND849 billion to VND738 billion ($28.43 million), supporting stronger profitability.

Meanwhile, financial income surged 178%, from VND43 billion to VND120 billion ($4.62 million), driven primarily by foreign exchange gains from export activities.

As a result, between January and March (Q2 of the fiscal year), Hoa Sen's after-tax profit reached VND205 billion ($7.89 million), up 24% from the previous quarter.

Regarding export activities, over the past six months, Vietnam’s steel industry has been impacted by anti-dumping investigations initiated by many countries.

Notably, the U.S. Department of Commerce launched an anti-dumping investigation in September 2024 concerning galvanized, cold-rolled, and color-coated steel products from Vietnam.

Due to cautious sentiment among customers, Hoa Sen's exports to the U.S. have been temporarily suspended since September 2024.

However, the group continues to leverage its core competitive advantages, seeking and expanding into new, promising markets. Hoa Sen has diversified its export to over 90 countries and territories.

This fiscal year, Hoa Sen expects business performance to decline compared to the previous period.

Under the most optimistic scenario, the steelmaker forecasts flat sales volume year-on-year, with net revenue reaching VND38 trillion ($1.46 billion) and after-tax profit of VND500 billion ($19.26 million), down about 3% from the prior year.

Under a more cautious scenario, net revenue is projected to drop 11% to VND35 trillion ($1.35 billion), while after-tax profit could fall 22% to VND400 billion ($15.4 million).

On the Ho Chi Minh Stock Exchange (HoSE), HSG closed Tuesday at VND12,500 ($0.48) apiece.