Vietnam steelmaker Hoa Phat sees earnings jump 140% in Jan-Sept

Hoa Phat Group, the largest steelmaker in Vietnam by market value, says it earned a net profit of VND9,210 billion ($370 million) in the first three quarters this year, up 140% year-on-year.

The group posted revenues of VND105 trillion ($4.22 billion) between January and September, up 23% year-on-year and meeting 75% of the yearly target, it said in a release on Monday.

It elaborated that the steel business contributed 85% to the earnings, followed by agriculture. Earnings from the steel and agriculture operations increased 42% and 80% year-on-year. Industrial park leasing posted a profit margin of 39%.

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. Of the amount, the group sold 3.3 million tons of construction and high-quality steel products, up 29% year-on-year, and 2.27 million tons of hot-rolled coil (HRC).

In Q3, Hoa Phat booked a net profit of over VND3.02 trillion ($121.4 million) on revenue of VND34 trillion ($1.36 billion), up 51% and 19% year-on-year, respectively.

The group is expanding its industrial park portfolio in the northern provinces of Hung Yen and Ha Nam, in anticipation of higher demand by domestic and foreign businesses.

Its products also feature chicken eggs, pork, and household appliances.

The group plans to churn out the first HRC products at its Hoa Phat Dung Quat 2 steel complex with an annual capacity of 5.6 million tons in the central province of Quang Ngai in a test run scheduled for the end of this year.

Shares of Hoa Phat Group, listed on the Ho Chi Minh Stock Exchange under ticker HPG, traded at VND27,250 ($1.09) each at 11 a.m. on Tuesday. The group has a market cap of VND174.3 trillion ($7 billion), ranking sixth on the bourse.