"Dragon Capital believes that Hoa Phat is stepping into a new growth cycle"

With the trust in HPG’s Board of Directors, Dragon Capital has always played a large proportion in the portfolio investment of Funds for many years.

"Currently, Dung Quat project has started to produce products and well received by the market, so we assess that Hoa Phat is stepping into a new growth cycle. Hoa Phat will benefit from public investment projects and real estate market which is getting warmer. The efficiency of the steel business will markedly improve as both sales volume and market share of Dung Quat factory increase" said Mr. Vo Nguyen Khoa Tuan - Deputy Director of Portfolio Management of Dragon Capital.

 According to investors, the Steel Integrated Complex Project in Dung Quat will lead Hoa Phat to a new growth cycle

 “In 2015, Hoa Phat consulted shareholders to invest in Agriculture or in 2016 to invest in Hoa Phat Dung Quat Steel Integrated Complex, Dragon Capital always supported although knowing that these are long-term projects, not fast fight and fast victory”, Mr. Tuan added.

Due to the Covid pandemic, Hoa Phat Group delayed the General Meeting of Shareholders in 2020 to June 25^th, 2020 in Hanoi. It is expected that the Board of Directors will agree and submit the business plan to the General Meeting with revenue ranges from VND 85,000 to VND 95,000 billion and profit after tax is from 9,000 to 10,000 billion VND. The 2019 dividend rate is expected to be 20% in stock and 5% in cash.

 By 2021, when the 4 blast furnaces of the Dung Quat project synchronously come into operation, Hoa Phat will reach the crude steel capacity of 8 million tons per year and become the largest steel enterprise in Vietnam. Currently, the market share of Hoa Phat steel has reached 31.4%, leading the country as long as the sales volume leading the southern market. The steel pipes, corrugated iron, furniture, refrigeration and agricultural business and production all developed stably and sustainably.

 HPG News