Hoa Phat posted VND1.8 trillion (US$77.5 million) after-tax profit in Q1

Hoa Phat Group achieved a revenue of VND15.18 trillion and after-tax profit of VND1.81 trillion in the first quarter of the year, representing 22 per cent and 27 per cent year-on-year increases respectively despite of changes in the market. Its key products saw strong sale in the southern region.

Hoa Phat Group sold around 700,000 tonnes of construction steel in the first three months of the year, up 28.68 per cent compared to the same period last year. With the increasing output, Hoa Phat steel has affirmed its leading position in the market with 25.7 per cent of market share. Its consumption in the southern region was double than the corresponding period last year while that in the central region was also increased by 87 per cent. Its steel export was more than 77,000 tonnes. Of which, 59 per cent was shipped to Cambodia. In addition, the group’s key products also conquered many demanding markets such as the US, Japan and Australia.

Hoa Phat’s steel pipe output reached 172,000 tonnes in the January-March period, up 16 per cent from the same period last year. Its marker share of steel pipe was nearly 31 per cent, increasing 2.5 per cent from the end of last year. The sales of steel pipe factories in the country’s three regions saw remarkable increase over the same period last year despite of facing with difficulties in the market. 

Hoa Phat officially introduced the PC bar product which was produced at Hoa Phat Dung Quat iron and steel complex in the central Quang Ngai Province to the market from the middle of March

Hoa Phat’s other business sectors such as colour-coated steel, wire rod steel, interior, refrigeration, real estate and agriculture were also promoted with new products to serve for the market’s demand. Hoa Phat officially introduced the PC bar product which was produced at Hoa Phat Dung Quat iron and steel complex in the central Quang Ngai Province to the market from the middle of March. The output of wire rod steel, colour-coated steel grew by 71 per cent from the same period last year. Of which, almost a half of the output was exported to the US, Canada and South Korea.

Canada recently made the final decision on investigation of anti-dumping duties to imported steels to the country. Accordingly, many Vietnamese steels including Hoa Phat’s construction steel and some other steel pipes exported to Canada would not be levied the anti-dumping tax.

Hoa Phat targeted a revenue of VND70 trillion and after-tax profit of VND6.7 trillion in 2019 as approved at its annual shareholders’ meeting. Hoa Phat’s chairman Mr Tran Dinh Long said this year would see challenges and increasing input costs.

“Hoa Phat’s target was to increase its market share when the Dung Quat Hoa Phat iron and stee complex come into operational. When we have higher market share, we would have higher profit,” Mr Long said.

Recently, Hoa Phat Group was honoured in the Top strongest brand names in Viet Nam and taking the lead in the Top 10 most prestigious construction material firms in Viet Nam.

                                                                                              Nghi Tran