Hoa Phat achieves VND3.32 trillion profit in Q2

In the second quarter of 2024, Hoa Phat Group reported revenue of VND 39.9 trillion, marking a 34 per cent increase compared to the same period last year. The company’s after-tax profit reached VND3.32 trillion, up VND1.87 trillion from VND1.44 trillion in Q2 2023. In the first half of the year, Hoa Phat achieved revenue of VND71 trillion and after-tax profit of VND6.1 trillion, while contributing VND7.4 trillion to the State Budget.

In the second quarter of 2024, construction steel drove Hoa Phat Group's revenue growth significantly.

The steel products were the primary contributor, accounting for 96% of the group’s consolidated revenue and 91% of its after tax profit. Agriculture followed, contributing 4% of revenue and 7% of after tax profit, while real estate added 0.3% to revenue and 2% to after tax profit.

Construction steel output reached 1.27 million tons in Q2, a 33% increase from the previous quarter's 956,000 tons. Conversely, hot rolled coil consumption dropped by 10%, from 805,000 tons to 724,000 tons. Despite these fluctuations, Hoa Phat maintained a leading 38% market share in the domestic construction steel sector.

In Q2 2024, hot rolled coil (HRC) output decreased by 10% compared to Q1 2024 due to challenges in both domestic and export markets. The influx of low-priced imported HRC surged sharply in the first half of 2024, reaching 6 million tons - 1.5 times higher than the same period in 2023 and outpacing the overall market growth. This influx put significant pressure on Hoa Phat’s domestic HRC consumption. Although HRC prices in Vietnam briefly rose in February 2024, they fell continuously from March through the end of Q2. The export market also faced difficulties due to a surplus of HRC and increased trade defense measures in importing countries. Despite these challenges, construction steel consumption drove Hoa Phat’s revenue growth for the quarter, compensating for the decline in revenue from HRC products.

In Q2 2024, hot rolled coil (HRC) output decreased by 10% compared to Q1 2024

In the realm of downstream steel products, steel pipe output achieved a milestone by reaching 318,000 tons, which is equivalent to the production from the first half of 2023. Hoa Phat Steel JSC, on the other hand, not only reached an output of 222,000 tons but also introduced the premium G7 - Luxury steel line. Furthermore, Hoa Phat unveiled over 69,000 tons of various types of prestressed steel (including PC Bar, PC Strand, and PC Wire) to the market.

In the container segment, Hoa Phat consistently secured numerous orders from esteemed partners in Vietnam and globally. Notable collaborators include Hapag-Lloyd, the largest container shipping company in Germany and a top 5 global player, as well as VSICO Maritime Joint Stock Company (VSICO), SeaCube Container Leasing Company, Hai An Transport and Stevedoring Joint Stock Company.

The group is actively engaged in the development of the Hoa Phat Dung Quat 2 Iron and Steel Production Complex project, which is poised to produce 5.6 million tons of hot rolled coil steel annually. Presently, phase 1 and phase 2 of the project are at 80% and 50% completion, respectively. The products of the phase 1 are expected to be provided to the market by the end of this year. Upon the project's full completion, Hoa Phat's crude steel production capacity will soar to over 14 million tons per year, positioning the company among the top 30 largest steel enterprises globally.

Within the agricultural sector, Hoa Phat distributed nearly 300,000 pigs throughout the first half of the year. Notably, the company's livestock revenue surged by 30% compared to the same period last year, attributed to a more consistent output and stable pig prices in contrast to 2023. Hoa Phat's clean chicken eggs have secured a spot among the top 3 largest producers in Vietnam and are leading the market in the North region.

Hoa Phat's household appliances division unveiled a range of innovative products, including electric fans, new air coolers, semi-industrial RO water purifiers, Funiki blenders, and Funiki rice cookers. Additionally, Hoa Phat's other offerings such as air conditioners, freezers, refrigerators, and dishwashers are experiencing robust demand, particularly during the sweltering summer season.

The primary image features Hoa Phat Water Purifier with the new slogan "Consistently Providing Clean Water."

Furthermore, Hoa Phat is actively investing in the expansion of its existing industrial parks in Hung Yen and Ha Nam provinces, enhancing clean land availability and technical infrastructure to cater to the investment and production requirements of both local and international enterprises.

Aligning its growth with community interests, Hoa Phat contributed 7.4 trillion VND to the State Budget in the initial six months of the year. During the first half of 2024, the company also initiated various charitable and social initiatives. These included constructing 300 gratitude houses in Tra Vinh, providing clean water to communities by donating over 300 water purifiers to schools and medical facilities nationwide, and commencing the Binh Dong Primary School project in Binh Son district, Quang Ngai.

Hoa Phat Group remains dedicated to its annual programs such as "Heartbeat of Love," which sponsors heart surgeries for underprivileged children, and "Godmother," which supports monthly food expenses for orphans.

 HPG News