Hoa Phat posted VND2.7 trillion profit in Q2, completed 56 percent of the set target

Hoa Phat Group (HPG) achieved positive business results in the second quarter of the year. Its revenue reached nearly VND20.7 trillion (US$900 million), increasing 35 per cent from the same period last year. Especially, its after-tax profit represented 34 per cent year-on-year increase to reach VND2.7 trillion ($116.4 million) – the record level in its history of nearly 30 years. The steel sector continued to have the largest contribution to the group’s growth.

In the first half of the year, HPG posted revenue of VND40.1 trillion and after-tax profit of VND5 trillion, representing 29 percent and 31 percent year-on-year respectively. HPG completed 47 percent and 56 percent of its set targets in revenue and after-tax profit respectively which were approved at its general annual meeting of shareholders in June. The results have proven Hoa Phat Group’s internal strength and flexibility in the difficult context of the COVID-19 pandemic.

In the first six months of the year, Hoa Phat provided 1.51 million tonnes of construction steel and high quality rolled steel to both local and foreign markets, increasing 12.4 percent from the corresponding period last year. Alone in the southern region, the sale was double to reach 357,000 tonnes. Its construction steel exports in the six month period posted 67.3 per cent year-on-year increase to reach 203,000 tonnes. The total output of steel billet was 2.6 million tonnes. In addition serving for Hoa Phat’s steel roll plants, the steel billet was provided 831,000 tonnes to the market in the first half of the year. Of which, the sale in June was 165,000 tonnes.

Hoa Phat sold 347,100 tonnes of steel pipes to the market. Of which, the steel pipe export amount was increased double against the same period last year, continuing to maintain its leading position with market share of more than 31 percent. Its large-sized steel pipe products quickly became a strong product line of the company. Particularly, the sales volume of Hoa Phat's steel sheet was increased by 200 per cent compared to the same period last year.

The group’s leaders targeted to provide hot rolled steel coil (HRC) to the market from September, thus helping local galvanised steel sheet producers reduce dependence on imported materials and promoting exports without worry about origin.

For the agriculture sector, although slightly affected by the COVID-19 pandemic, it recorded VND2.2 trillion in revenue and VND360 billion in after-tax profit in the second quarter of the year, contributing 11 percent and 13 percent respectively into the group’s overall results. Its farms have been applied biosecurity standards, strict preventive measures to ensure the sustainable development of the herd and would not be affected by diseases.

Other sectors such as furniture, refrigeration and real estate still maintained stable business and production. Hoa Phat furniture has constantly launched new products, especially family products, aiming to celebrate its 25 years of establishment and development.

 HPG News