Vietnam steel major Hoa Phat posts 23% revenue growth in Jan-Sept

Hoa Phat Group, a leading construction steel producer in Vietnam, recorded revenues of VND105 trillion ($4.22 billion) in the first three quarters of this year, up 23% year-on-year.

In Q3, the group earned estimated revenues of VND34 trillion ($1.37 billion), representing an annualized rise of 19%, it said in a statement, without giving earnings estimates.

Hoa Phat (HoSE: HPG) said both the domestic and international steel markets were facing headwinds in Q3, with prices trending down. Its steel sales volume dropped 7% quarter-on-quarter to over 2 million tons.

The company's construction and high-quality steel production decreased 14% quarter-on-quarter to 1.1 million tons in Q3. The company still managed to keep the largest share in the domestic construction steel market, at 38%. Its hot-rolled coil (HRC) output stayed unchanged at 738,000 tons versus Q2.

Between January and September, Hoa Phat produced 6.4 million tons of raw steel, up 34% year-on-year. The sales volume rose 32% to 6.1 million tons, excluding steel pipes and galvanized steel.

In Jan-Sept, steel pipe production increased 3% year-on-year to 503,000 tons, and galvanized steel output jumped 43% to 344,000 tons, exceeding 329,000 tons for the whole of 2023.

The company said it recorded positive performances in other businesses such as chicken egg and pork production, household appliances, and industrial park development.

It noted that resources were being prioritized for the construction of the Hoa Phat Dung Quat 2 steel complex, with an annual output of 5.6 million tons of HRC. The company expects to churn out the first HRC products in a test run by the end of this year.

In another announcement, Hoa Phat Group and its subsidiaries paid VND10 trillion ($402.2 million) to state coffers in Jan-Sep, up 65% year-on-year, and the tally may amount to VND15 trillion this year.