Hoa Phat received Malaysian largest investment funds

On August 4^th 2017, the largest investment funds from Malaysia had a meeting with Hoa Phat Group to study its main production and businesses as well as updating operation and progress of the group’s big prpjects. Mrs. Nguyen Thi Thao Nguyen, Hoa Phat Group’s deputy general director and chief financial officer Pham Thi Kim Oanh answered all questions from the investment funds.

With the introduction from Maybank Kim Eng Securities Joint Stock Company, representatives from big investment funds with total assets of dozens of US billion such as Wellington, EPF, PNB, CIMB Principle, KMIC, Etiqa etc met with Hoa Phat Group.

Malaysian big investment funds pay attention to investment opportunities into HPG

In general introduction about Hoa Phat Group, Mrs. Pham Thi Kim Oanh said Hoa Phat has 25 years of development and 10 years of listing on the stock market. The group now has 12 subsidiaries operating in 5 main sectors including construction steel, steel pipe, galvanised steel, other industrial production, agriculture and real estate. Of which, steel production has been its main sector accounting for over 80 per cent of its total revenue and profit.

Hoa Phat has been implementing some big projects such as Hoa Phat Dung Quat Integrated Steel Complex in Quang Ngai Province with capacity of 4 million tonnes per year, Hoa Phat Steel Sheet Factory in Hung Yen Province with annual capacity of 400,000 tonnes, Mandarin Garden 2 in Ha Noi and others.

Malaysian investment funds raised many questions on construction steel such as its production technologies, price structure, its advantages in comparison with rivals, electricity consumption, market demand for construction steel, self-defence tax on imported steel billet and long steel as well as other steel projects in Viet Nam.

Answering the questions, Mrs. Nguyen Thi Thao Nguyen said Viet Nam and the world have two technologies for steel production including electric furnace technology from scrap and blast furnace from iron ore. Hoa Phat has advantages of applying the two technologies. Of which, the main steel output comes from blast furnace with capacity of 2 million tonnes a year. The blast furnace technology is a closed production process to save cost thanks to using Take advantage of residual heat from coking to generate electricity. In addition, Hoa Phat Steel has also taken advantages of its river port to reduce transport cost, thus improving competitiveness.

Hoa Phat completed negotiations and signing contracts o buy main equipment, choosing contractors for its Hoa Phat Dung Quat Integrated Steel Complex in Quang Ngai Province. It would give priorities for rolled steel factory in the first phase with capacity of 2 million tonnes of long steel to provide for the southern market from July 2018.

Mr. Thai Quang Trung, deputy director of Maybank Kim Eng Securities JSC (right) highly valued warmly welcome reception of Hoa Phat Group

Hoa Phat has ensured progress of Hoa Phat Steel Sheet Factory in Hung Yen Province. In the beginning of 2018, the factory would become operational meeting 85 per cent of its designed capacity in the first year of operation. In the property sector, Hoa Phat is accelerating to complete the Mandarin Garden 2 project to hand over apartments for customers by the end of this year.

Mr. Thai Quang Trung, deputy director of Maybank Kim Eng Securities JSC which proposed the meeting said this is a regular activity to update information of leading firms in Viet Nam to seek for investment opportunities for the company and its partners.

Nghi Tran