Vietnam's steel giant Hoa Sen surpasses full-year profit target by 29% after 9 months

Hoa Sen Group (HSG), one of Vietnam’s leading steelmakers, reported a net profit of VND647 billion ($24.8 million) for the first nine months of its fiscal year starting October 2024, exceeding its full-year target set under an optimistic scenario by 29%.

During the period, HSG posted VND28.2 trillion ($1.08 billion) in revenue, reaching 74% of its full-year goal, the company said in its report.

Despite U.S. tariffs and anti-dumping probes, Hoa Sen said its operations remain unaffected as it halted export of coated steel to the U.S. as early as September 2024.

Since then, the company shifted focus to the domestic market and expanded its retail network with a growing chain of furniture and construction material stores nationwide.

In a mid-year strategy note, SSI Securities highlighted the rising importance of the domestic market amid mounting global protectionism.

While public investment and a recovering real estate sector are supporting steel demand, SSI warned of intensifying competition in the domestic coated steel segment as export barriers grow and major players continue to ramp up capacity.

SSI forecast Hoa Sen could achieve VND39.4 trillion ($1.51 billion) in revenue and VND701 billion ($26.82 million) in profit this fiscal year, up 1% and 37% year-on-year, respectively.

HSG shares closed up 0.85% to VND17,900 ($0.68) each on Tuesday.