Vietnam's leading steelmaker Hoa Sen beats full-year profit target after 9 months

Hoa Sen Group (HoSE: HSG) has exceeded its full-year profit target after nine months of its 2025-2026 fiscal year ending September 30, driven by a sharp earnings recovery in the third quarter and improved operating efficiency.

According to its earnings report, the steel producer reported net profit of VND568 billion ($21.63 million) between October 2025 and June 2026, equivalent to 114% of the full-year target.

The company said it sold an estimated 1.32 million tons of steel products during the nine-month period, fulfilling 75% of the year's target, while consolidated revenue reached VND27.36 trillion ($1.04 billion), or 78% of its full-year plan.

The strong earnings performance was largely driven by a robust third quarter. During the April-June period, Hoa Sen estimated sales volume at 461,739 tons, revenue at around VND10 trillion ($380.87 million), and net profit at VND382 billion ($14.55 million).

The company said its domestic business has benefited from a recovery in Vietnam’s construction sector, supported by accelerating public investment and gradually improving building demand. Hoa Sen’s network of nine manufacturing plants and more than 400 branches and stores nationwide also helped enhance competitiveness and improve operating efficiency.

Regarding export, the company said it continued to diversify its customer base, strengthen competitiveness, and proactively respond to rising trade protection measures in many countries.

Alongside its steel business, Hoa Sen has continued expanding its Hoa Sen Home building materials and interior retail chain, which the company views as a long-term growth driver by leveraging its distribution network, broadening its customer base, and strengthening brand recognition.

The strong earnings performance lifted the company’s book value to around VND14,700 ($0.56) per share after completing a 30% stock dividend payment in May, according to Hoa Sen. The book value is about 30% higher than the company’s current market price.

The results were broadly in line with forecasts from securities analysts. Earlier, Rong Viet Securities said Hoa Sen’s business performance was expected to improve significantly from mid-year, supported by seasonal construction demand, trade protection measures for the domestic steel industry, and gradually rising selling prices.

By the end of May, domestic hot-rolled coil (HRC) prices and Hoa Sen’s galvanized steel selling prices had risen by 12-15% and 6-8%, respectively, from the beginning of the year.

Having already exceeded the year's profit target after nine months, Hoa Sen said it remains well positioned to deliver another positive quarter and continue creating long-term value for shareholders.

HSG shares ended down 0.88% to VND11,250 ($0.43) each on Monday.