Nearly 60 investors visit Hoa Phat’s factories

Hoa Phat Group (HPG) on July 27^th 2016 organised a visit to some of its factories in northern provinces of Hai Duong and Hung Yen with participation of nearly 60 investors, representatives of securities companies, fund management companies and its shareholders.

The visit has been in the chain of activities for its quarterly shareholders relationship to announce its production and business results in the second quarter and first half of 2016 as well as directions for its operation in the second half of the year. Some investment funds and big securities companies joined the activity such as VN Direct, IPA Asset Management, BIDV Securities, VCBS, Dragon Capital, VietFund, PXP, SSI,…

The delegation works with Hoa Phat Group’s board of directors

At the Hoa Phat steel complex in Kinh Môn District, Hải Dương Province, the delegation worked with board of directors of the two member companies including Hoa Phat Steel Joint Stock Company and Hoa Phat Energy Joint Stock Company. Nguyen Duc Duyen, deputy director of Hoa Phat Steel Joint Stock Company, the company has capacity of 2 million tonnes a year, applying a closed blast furnace technology from iron ore to steel products.

Investors pay much attention to blast furnace technology, its advantages in comparison with electric furnace, coke consumption per tonne, waste water disposal... Answering the questions, Duyen said the basic different characteristic between the electric furnace and blast furnace is quality of output product. Steels produced from electric furnace is just re-scrap steel, consume large power amount and producing many impurities, so the quality can not be high as that is produced from iron ore. In fact, the steel products require high technologies such as wire rod steel or welding steel rod are only able to be produced from blast furnace.

The delegation visit production area at Hoa Phat steel production complex

Visiting Hoa Phat’s first feed factory in Hung Yen Province, Nguyen Viet Thang, director of Hoa Phat Feed Trading and Producting Company Ltd said the factory has capacity of 300,000 tonnes per year, totally using technologies from the EU. The factory started its operation in Jun with some 40 kinds of different products for cattle and poultry. The materials for feed production such as corn and soybean are imported from leading countries in the world to ensure quality of output products. The good news is that Hoa Phat's livestock feeds are receiving positive returns from the market. The sale has been higher than the set targets.

Nguyen Viet Thang directly guides the delegation to visit the Hoa Phat’s feeding factory

Investors pay much attention about technology, imported raw materials, breakeven point, market works, agent development or sales policies in order to gradually dominate the market. Some investors made the question that in Vietnam there are many "giants" in animal feed with fierce competition in the industry, so why does Hoa Phat develop this product?

With the competitiveness of the animal feed industry, the company's leaders frankly said: "If any sector saw many giants and did not dare to participate, then no new business anymore. If we are afraid of the new business, then there is no strong Hoa Phat Steel brand as today. Afraid of competitive can not be developed. We have thoroughly researched all aspects and decided to invest basically since the first step into high-tech agriculture and confident that we will be succeed with the sector."

Investors highly valued IR activies of Hoa Phat Group

The investors are very satisfied and hope that Hoa Phat will continue to be successful in the coming time. Nguyen Thu Huyen (PVI's fund manager) highly appreciates Hoa Phat for organising the visits to its factories, while at the same time asserts that there are not many listed companies doing good and often relationship with shareholders.

Nghi Tran