Hoa Phat Group posts record profit of VND3.78 trillion in Q3, double than last year

Hoa Phat Group achieved a revenue of VND24.9 trillion in the third quarter of this year. Its after-tax profit was double than the same period last year to reach VND3.78 trillion. This has been the first time in its history, the group posted a record after-tax profit in a quarter.

Hoa Phat Group posted a record business results in the third quarter

In the first 9 months of the year, Hoa Phat Group recorded positive business results with revenue of VND65 trillion and after-tax profit of up to VND8.84 trillion, up 40 per cent and 56 per cent respectively over the same period in 2019. The after-tax profit in the nine-month period reached 98 per cent of the whole year’s plan. This has also been the first time that both revenue and after-tax profit in the first 9 months of 2020 have exceeded the performance level in 2019 to the highest level so far.

The achievements were thanked to a series of positive business indicators, in which iron and steel and agriculture have the highest contribution. In September 2020, Hoa Phat Group officially took the lead in crude steel production with 575,000 tonnes, the highest level so far, an increase of 19 per cent compared to August 2020 and nearly doubled over the same period in 2019.

In the January-September period, Hoa Phat Group supplied more than 4 million tonnes of crude steel, double than the same period last year. In which, the sale of finished construction steel reached nearly 2.5 million tonnes while the remaning were steel billets and hot rolled coil (HRC). Hoa Phat’s steel market share continued to take the leading position with 32.6 per cent. The group has not taken the lead in the domestic steel market but also shipped more than 370,000 tonnes, up 95 per cent over the same period last year. The total volume of steel billet sold to both domestic and foreign customers after 9 months reached 1.25 million tonnes.

The group's total sale volume of steel pipes and galvanized steel sheet has seen relatively high growth despite many difficulties due to the COVID-19 pandemic. In the first 9 months of the year, its sales of steel pipe products reached nearly 570,000 tonnes, representing 3.5 per cent year-on-year increase. Especially, Hoa Phat steel sheet recorded a growth of 150 per cent over the same period.

In recent years, the group’s agricultural sector continued to grow strongly, contributing about 12 per cent of revenue and 15 per cent of profit to the total.

Other industries and real estate sectors also contributed significantly to the group's overall business results. Hoa Phat Furniture marked 25 years of development with a series of high-end office and home projects. Notably, Hoa Phat Refrigeration recorded a sudden increase in profit and exceeded the plan for the whole year only after 9 months.

With the impressive business results, in the third quarter of 2020, Hoa Phat Group was continuously honoured in the prestigious rankings such as Top 50 most effective enterprises for 9 consecutive years, Top 30 largest taxpayers, Top 10 Most Famous Brands, Top 50 Most Valuable Brands in Vietnam, Top 3 Listed Companies with the most favourite IR Activities to investors.

Hoa Phat sets a target of VND86 trillion in revenue and VND9 trillion in after-tax profit in 2020. With the above positive results, the group is confident to surpass the set plans, and striving to put the No. 4 blast furnace - the last item of Hoa Phat Dung Quat Iron and Steel Production Complex into operation in January 2021.

Nghi Tran