Hoa Phat Group reaches 565 billion VND profit after tax

Base on summarized results of initial 11 months of 2007, Hoa Phat Group has reached VND 4.930 billion in revenue, increase more than 50% than this period of 2006. Profit after tax of initial 11 months achieves VND 565 billion.

Therefore, in comparison with initial plan of 2007 which are VND 4.300 billion in revenue and VND 330 billion in profit after tax, Hoa Phat has exceeded 15% in revenue and more than 70% profit plan of the year.

This is an impressive achievement of the whole Hoa Phat Group with strong growth in all core businesses such as construction steel, steel pipe, furniture, refrigeration, construction machine and mining exploration… With market movement and the capacity of the Group, Hoa Phat believes revenue of 2007 will reach VND 5.500 billion and more than VND 600 billion in profit after tax, exceeding 28% revenue and 82% profit after tax (in comparison with projected figure)

With these results, EPS of 2007 will be 4.800 dong/stock (according to average charter capital in 2007) and indicator P/E as 19 according to close price of December 13th 2007 in HOSE.

This business result is also a premise for the Managing Board to make up 2007’s strategy. Beside decision of distributing dividend in cash by 10% which announced, Hoa Phat intends to increase charter capital to 100 billion dong for the institutional investors (as 10.000.000 shares) and issue bonus shares with ratio 10:04 from premium capital and retained profit of 2007.

It’s an indispensable requirement of Hoa Phat Group to increase charter capital to VND 1.980 billion in 2008 is the process of expanding and continuously developing. The capital and surplus will be used for sponsoring the big projects which are now in operation such as: Cement project with the capacity of 3 millions tons/year; Steel Manufacturing Complex with capacity of 700.000tons/year; Mining exploitation & Processing fine ore Project with capacity of 300.000 tons/year; projects of constructing urban centre and apartment building and enlarging several factories of the Group.

Hoa Phat believes these judicious investment strategies will bring sudden change in growth of both revenue and profit in 2009 when the projects have product.

This general power will gain momentum for Hoa Phat Group to reach 12.000 billion dong in revenue in 2010 and direct toward the target of 1 billion dollar in 2012.

Hồng Hạnh