Hoa Phat posted after-tax profit of VND2.2 trillion in Q1

Hoa Phat Group posted revenue of VND13 trillion and after-tax profit of VND2.2 trillion in the first quarter of the year, representing 25 per cent and 14 per cent year-on-year increases. High steel sale continued to be the main momentum for the group’s growth.

 The domestic construction market in the first months of the year was relatively active, which helped Hoa Phat steel to grow nearly 10 per cent compared with the same period of 2017 with the output of 542,000 tonnes. As a result, Hoa Phat has increased its market share to over 24 per cent, maintaining its leading position in the domestic construction steel industry. In addition, the export volume of rolled steel in the first three months of the year reached 73,000 tonnes, posting 40 per cent year-on-year rise, with turnover of over US$42 million. Major export markets include Australia, ASEAN countries, the US and Canada.

Meanwhile, Hoa Phat steel pipe sales reached 148,200 tonnes, up 17 per cent compared with the corresponding period last year. The southern region had the highest growth rate with 24 per cent. Hoa Phat steel pipe is gaining more market thanks to a series of measures to improve quality and expanding production scale. Hoa Phat Steel Pipe Company is also increasing its export volume. In the first three months of this year, the company exported 3,200 tonnes to the foreign market.

Hoa Phat has started to provide the first colour-coated steel products meeting Europea quality since April 2018. Also in the steel industry, Hoa Phat exported galvanized steel wire for the first time to some countries such as South Korea and Laos. The domestic market is very positive with the new product.

Currently, the Hoa Phat Dung Quat Steel Complex is being implemented as planned. The group has prioritised resources to put the first long rolled steel production line into operation in the third quarter of 2018 to meet with demands of the central and southern regions. Other items will be completed from the fourth quarter of this year to the end of 2019. Hoa Phat targeted to test synchronously both two phases by the end of 2019.

Other industrial sectors such as furniture, refrigeration, equipment and spare parts continue to maintain market share and develop new products. Hoa Phat Furniture keeps the leading position in office products, boosting the family product line, while Hoa Phat Refrigeration introduces new generation Funiki MMC air conditioner, which promises to bring high growth for the group.

As for real estate sector, Hoa Phat is stepping up completion and handing over Mandarin Garden 2 apartment building, Hoa Phat 70 Nguyen Duc Canh building and expanding infrastructure of Pho Noi A Industrial Zone, Yen My II Industrial Zone as well as North Pho Noi Urban Area, Hung Yen ...

Recently, Hoa Phat continued to be honoured in the Top Strong Brands in Viet Nam, leading the Top 10 most prestigious building materials companies in Viet Nam.

HPG