Vietnam steelmaker giant Hoa Phat’s net profit hits 2-year high

Hoa Phat Group, Vietnam’s leading steelmaker, recorded its highest yearly net profit in two years, surpassing its target by 20%, driven by increased production and sales.

According to its 2024 earnings report, Hoa Phat Group (HoSE: HPG) brought in VND12.02 trillion ($479.27 million) in net profit last year, up 77% from 2023.

Its 2024 revenue surged 17% year-on-year to VND140.56 trillion ($5.6 billion), reaching its year’s goal. Last year, the firm contributed VND13.4 trillion ($534.29 million) to the state budget.

Its strong performance was fueled by a 30% year-on-year increase in raw steel output to 8.7 million tons and a 20% rise in sales to 8.1 million tons.

HPG remains Vietnam's largest manufacturer of long steel and steel pipes, holding market shares of 37.6% and 27.7%, respectively. Its products have been supplied to major infrastructure projects, including airports and metro lines in Hanoi and Ho Chi Minh City.

Exports to 40 countries and territories accounted for 31% of HPG’s revenue in 2024.

Other business segments also performed well. Notably, HPG owns over 1,100 hectares of industrial land, primarily designated for foreign direct investment (FDI) attraction. The company plans to develop three additional industrial parks in the near future.

The second phase of the Hoa Phat Dung Quat 2 Iron and Steel Production Complex, covering 280 hectares in the central province of Quang Ngai, is set for completion later this year or in early 2025.

The project is designed to produce 5.6 million tons of high-quality hot-rolled coil (HRC) steel annually. Once fully operational, Hoa Phat’s crude steel production capacity will increase to 14.5 million tons yearly, including 8.6 million tons of high-quality HRC steel.

HPG shares closed Friday at VND26,550 ($1.06) each.