Vietnam's No.1 steelmaker Hoa Phat posts 5-quarter high Q3 profit

Stable raw material prices and improved sales helped Hoa Phat Group, Vietnam's largest steelmaker, earned a post-tax profit of VND2 trillion ($81.37 million) in the third quarter of 2023, the heftiest in five quarters.

Its Q3 profit expanded 38% from Q2 and marked a turnaround from a loss of nearly VND1.79 trillion ($73 million) in Q3/2022, its financial statement showed.

Hoa Phat, listed on the Ho Chi Minh Stock Exchange (HoSE) as HPG, posted revenue of nearly VND28.8 trillion ($1.17 billion) in Q3, down 16% over the same period last year.

In the first nine months of 2023, the steel maker recorded VND85.43 trillion ($3.47 billion) in revenue and VND3.83 trillion ($155.8 million) in after-tax profit, down 27% and 63% year-on-year, respectively, completing only 48% of the year's plan.

In the nine-month period, the group produced 4.8 million tons of crude steel, down 21% compared to the same period in 2022. Steel sales, excluding steel pipes and galvanized steel sheets, reached 4.6 million tons, a year-on-year decrease of 19%. The volume included 2.57 million tons of construction steel and high quality steel and nearly 2 million tons of hot rolled coin (HRC), down 25% and 3%, respectively.

Hoa Phat exported 490,000 tons of steel in the period. The group also provided the market with 488,000 tons of steel pipes and 240,000 tons of galvanized steel, down respective 14% and 3% year-on-year

In addition, the steel producer officially sold container shell products in early August.

Also in August, its subsidiary Hoa Phat General Port JSC put the first wharf of the Hoa Phat Dung Quat general container port in the Dung Quat Economic Zone, Quang Ngai province into operation to serve the needs of businesses in the EZ and surrounding areas.

In the field of household appliances, Hoa Phat launched new products such as large freezers, washing machines, water dispensers, and new-generation water purifiers. Hoa Phat products are now available at the Dien May Xanh chain and electronics supermarkets nationwide. Its Funiki air conditioner jumped to 6th place among 14 air conditioner brands at Dien May Xanh.

In the agricultural segment, the group said it optimized the investment efficiency of animal feed factories and live hog, cow and chicken farms across the country, aiming to maintain its position as a leading provider of chicken eggs and commercial pigs.

Hoa Phat also continued to invest in expanding existing industrial parks in the northern provinces of Hung Yen and Ha Nam, creating more clean land funds and technical infrastructure to meet the needs of domestic and foreign enterprises.

Going forward, Hoa Phat will prioritize good inventory management and align production and business with market movements. At the same time, it will continue with the investment progress of large projects, especially Hoa Phat Dung Quat 2 Iron and Steel Production Complex in Quang Ngai province.

HPG shares closed the Friday session at VND23,350 ($0.95) each.