Hoa Phat Records Over VND 3.3 Trillion in Q1 2025 Net Profit, Up 16% YoY

17/04/2025 15:00

Hanoi, April 17, 2025 – Hoa Phat Group held its 2025 Annual General Meeting of Shareholders (AGM), where shareholders approved the Group’s 2025 business plan, targeting consolidated revenue of VND 170 trillion (approximately $6.75 billion), up 21% compared to 2024, and after-tax profit of VND 15 trillion (about $595 million), reflecting a 24.8% year-on-year increase. For Q1 2025, Hoa Phat reported revenue of VND 37.9 trillion and net profit after tax of over VND 3.3 trillion, representing growth of 22% and 16% respectively versus the same period last year.anh-3

Chairman Tran Dinh Long of Hoa Phat delivered the opening speech at the 2025 Annual General Meeting of Shareholders

Over 1,000 shareholders and delegates attended the AGM, representing approximately 4.2 billion voting shares (67% of total voting rights). The AGM approved all proposals, including the 2025 business plan, a 20% stock dividend payout for 2024, proposed 2025 dividend policy, fund allocations, and other corporate governance matters.anh-2

The meeting was attended by over 1,000 shareholders and delegates, representing 4 billion shares, accounting for 67% of the voting shares

Market Leadership in High-Tech Steel, Ready for a New Era

Hoa Phat remains committed to investing in high-value-added steel products with advanced technical standards. Its operations closely align with market dynamics, ensuring cost optimization throughout the producing chain. 

In 2024, the Group recorded revenue of VND 140.56 trillion and net profit of VND 12.02 trillion, up 16% and 77% respectively year-on-year. The steel segment (including steel and steel products) remained the primary contributor, accounting for 93% of consolidated revenue and 86% of after-tax profit. The agriculture segment posted a 4.6x increase in profit over the previous year.

Export activity continued to be a key driver, contributing 31% to total revenue, with product presence in over 40 international markets, including Southeast Asia, Japan, South Korea, the U.S., Canada, and Europe. Export growth not only diversified sales markets but also enhanced foreign exchange inflows and supported Vietnam’s trade balance.

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CEO Nguyen Viet Thang shared: Hoa Phat maintains an export ratio of around 20%

In 2024, Hoa Phat contributed nearly VND 13.5 trillion to the State budget—its highest annual tax contribution in 32 years of operation—representing a 48% increase compared to 2023.

Strategically, the Group is intensifying its focus on manufacturing high-grade steel products tailored for downstream industrial applications, including automotive, shipbuilding, oil & gas, mechanical engineering, railways, home appliances… and defense industries. This strategy aims to enhance domestic self-sufficiency in raw materials and reduce reliance on imports.

The Hoa Phat Dung Quat 2 Integrated Steel Complex remains a top strategic priority, with completion expected in 2025. Upon full commissioning, the Group’s steel production capacity will reach 15 million tons per annum, positioning Hoa Phat among the top 30 largest global steel producers.

Q1 2025 Performance Highlights

Chairman Tran Dinh Long confirmed that Hoa Phat recorded VND 37.9 trillion in revenue and over VND 3.3 trillion in net profit after tax in Q1 2025, fulfilling 16% of the annual profit target.

Production of crude steel reached 2.66 million tons in the quarter, up 25% YoY. Sales volume of hot-rolled coil (HRC), high-quality steel, construction steel, and billets totaled 2.38 million tons, up 29% YoY.

  • HRC output reached 993,000 tons (+23% YoY), including 874,000 tons sold domestically (+84% YoY).
  • Sales of construction and high-quality steel totaled 1.19 million tons (+25% YoY).
  • Hoa Phat also supplied 198,000 tons of steel billets to both domestic and export markets, more than double the volume in Q1 2024.

In downstream segments:

  • Galvanized steel: 89,000 tons (-9% YoY)
  • Steel pipes: 185,000 tons (+42% YoY)
  • Prestressed steel: 38,500 tons (+7% YoY)

The agriculture segment generated over VND 400 billion in revenue for Q1, maintaining industry-leading profitability in the domestic market. In real estate, the Group is piloting a social housing project in Yen My while evaluating additional opportunities. However, real estate (including residential and industrial zones) is expected to account for no more than 5% of the Group’s total asset base.

Phase 1 of the Dung Quat 2 steel complex has entered trial operations. Phase 2 is on schedule and is expected to be completed in Q4 2025. With added capacity from the new complex, the Group targets double-digit growth this year and beyond.

Ready to commence construction of the rail steel and specialty steel manufacturing plant

During the discussion session at the AGM, Chairman Tran Dinh Long and the Group’s executive leadership openly addressed shareholders’ and investors’ questions regarding the business strategy, dividend distribution plan, high-speed rail steel production project, Phu Yen development, tariff-related issues, and more."anh-1

Chairman Tran Dinh Long openly shared insights with shareholders about the Group’s various sectors

Despite macroeconomic uncertainties in 2025—particularly geopolitical risks and rising global protectionism—Hoa Phat remains confident in its adaptability and long-term growth strategy. Chairman Long emphasized:

"At Hoa Phat, our culture is built on overcoming challenges and pushing through every barrier. No matter the difficulty, we move forward with confidence, ready to adapt swiftly to shifts in both local and international markets."

Hoa Phat consistently aims to maintain its export ratio at around 20%. In certain periods, such as in 2024 when the domestic market faced challenges, the export share rose to as high as 31% — the highest level in the Group’s history. While this served as a short-term solution, the strategic objective remains to sustain exports at approximately 20% of total sales

Regarding the dividend distribution plan, Hoa Phat intends to declare a 20% stock dividend for 2024. This approach is aimed at preserving cash flow and reinforcing financial resilience amid global uncertainties, particularly in light of potential retaliatory tax policies from the United States.

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The AGM saw a lively exchange during the shareholder Q&A

Going forward, Hoa Phat aims to expand its portfolio of high-grade steel, including:

  • Tire cord and bead wire
  • Cold stamping steel
  • Prestressed steel
  • Non-alloy spring steel
  • Oil and gas pipeline steel
  • Cable and precision fastener steel
  • Plain round bars and coiled bars for advanced manufacturing

The Group plans to invest approximately VND 14 trillion to establish a rail steel plant in Dung Quat. Chairman Long affirmed the Group’s commitment to fulfilling its pledge to the Prime Minister regarding the supply of high-quality rail steel for the North–South high-speed railway and major urban rail projects in Hanoi and Ho Chi Minh City. Contracts for equipment supply are expected to be signed in May, with commercial rail steel products targeted for release in 2027. 

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Shareholders showed strong interest in the high-speed rail steel project

Regarding the market demand for HRC products, Chairman Tran Dinh Long stated that all HRC output is currently sold immediately upon production. The company will continue to explore market opportunities and is confident in its ability to increase HRC sales volume by an additional 35%.

Chairman Tran Dinh Long emphasized: “The Hoa Phat team has mastered the technology to produce various complex steel products. If tire cord steel is rated 10 in difficulty, we have been manufacturing and supplying it to the market for years. Rail steel, by comparison, ranks around 7 or 8. That is why we are fully confident in our ability to meet the steel material demands of key national railway projects.”

As for the projects in Phu Yen, Hoa Phat is currently conducting preliminary studies and will consider investment at an appropriate time.

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