Steelmaker Hoa Phat Group targets US$2.4b in revenue in 2018

Steelmaker Hoa Phat Group targets revenue of VNĐ55 trillion (US$2.4 billion) and after-tax profit of VNĐ8 trillion in 2018.

The information was released at the group’s annual shareholder meeting held at Hilton Opera Hotel in Hà Nội on March 22th with participation of 368 shareholders, accounting for 77 per cent of ordinary shares.

The meeting discussed and agreed many important contents including the report on their business operation, financial report, voting for new member of the controlling board, dividend payment in 2017 and plans for 2018. The event was attended by chairman of the management board, Tran Dinh Long, vice chairman of the management board cum general director, Tran Tuan Duong and vice chairmen including Doan Gia Cuong, Nguyen Manh Tuan.

Hoa Phat’s chairman of the management board, Tran Dinh Long, said they defined 2018 as a crucial year for the group.

The firm would take drastic measures to ensure the progress of the Hoa Phat Dung Quat steel and iron production complex and consider it the priority target for this year, Long said.

He added that the management board had carefully considered the targets before submitting them to the meeting.

“In the first quarter of this year, Hoa Phat’s revenue was estimated to reach VNĐ12 trillion and profit of VNĐ2 trillion,” he said.

Tran Tuan Duong announced Hoa Phat Group’s business results in 2017  

The group would implement many big projects this year in their main steel business. In addition, it would be cautious of changes in the material market.

In other sectors such as agriculture, construction equipment and interiors, Hoa Phat would continue to maintain its market shares.

Tran Tuan Duong, Hoa Phat’s general director said there is no steel firm in Viet Nam as competitive as Hoa Phat.

“With a low rate of investment and a competitive price, we can directly compete with big firms around the world,” Dương said.

The group’s annual shareholder meeting 2018 received attention from shareholders

Speaking on the progress of the Hoa Phat Dung Quat steel and iron production complex, the group has started to install the first long steel rolling equipment, build a deep water port and undertake other constructions.

Hoa Phat employed around 3,000 workers for the project, providing training at its complex in the northern province of Hai Duong.

He said the group would double their revenue this year compared to 2017 after the complex comes into operation, bringing its total steel capacity to over seven million tonnes by 2020. This could also put the group in the top 50 biggest steel producers worldwide.

The shareholder meeting approved dividends of 40 per cent by share for 2017.

Last year, Hoa Phat Group reached a record high business result in its 25 years of operation despite instability in the global and national economies.

Its integrated revenue in 2017 reached VNĐ46.8 trillion, posting an increase of 38 per cent year-on-year. After-tax profit also hit a record high to reach VNĐ8 trillion, surpassing 33 per cent of the set target and increasing 21 per cent on the previous year.

Hoa Phat Group’s leaders frankly answer questions from shareholders

The group’s steel business played the key role, contributing some 90 per cent of its total revenue and after-tax profit.

Hoa Phat also recorded production of three million tonnes of steel in 2017, up 25 per cent from 2016.

Last year, Hoa Phat exported some 200,000 tonnes of steel products. They included 161,000 tonnes of steel bars and rolled steel to the US, Canada, Australia, Malaysia and Cambodia.

In terms of real estate, Hoa Phat Group handed over its Mandarin Garden 2 housing project in Hà Nội to homebuyers, while expanding industrial zones in Hung Yen. It also started construction of Bac Pho Noi Urban Area and the 70 Nguyen Duc Canh apartment building.

Its interiors, refrigeration and building equipment businesses saw stable growth in 2017. It also posted revenue in the agriculture sector with its feed and livestock products.

With its positive business results, the group contributed VNĐ5 trillion ($220 million) to the State budget in 2017, increasing 40 per cent from 2016. Hoa Phat contributed VNĐ20 trillion to the State budget in the 2008-17 period.

In November, Hoa Phat officially introduced its new brand name recognition project to better improve its image, prestige and scale.

                                                                                        Nghi Tran