Hoa Phat to meet investors

On 15/07/2014 in Hanoi, Hoa Phat Group has organized a meeting for investors, shareholders of HPG to update the results of production and business activities in the first 6 months of 2014. BOM Chairman Tran Dinh Long has directly answered all the questions of shareholders and investors on the Group business segments last time, especially information related to construction steel, steel pipes and phase 3 project of Hoa Phat steel integrated complex.

The meeting had more than 70 guests from securities companies, investment funds, and large investors who interested in shares of HPG. About 6 months business results of 2014, Mrs. Ly Thi Ngan - HPG CFO said, Hoa Phat Group achieved impressive results with VND1.874 billion profit after tax and revenue of 13,339 billion, respectively 85 % and 58% of the year plan. The average financial indicators of the last 4 quarters HPG are very good with EPS 5,806 /share, ROA 13.7% and ROE 28.5%. 

Overview of investor meeting

For the key business segment, construction steel sales volume reached 445,000 tons, an increase of 37.74% over the same period, accounting for 18% market share (compared with 15.2% growth in late 2013). Hoa Phat has exported wire rod to Australian market for the first time and signed a contract to supply steel for partners in Laos. From late 2013 to the end of the month 6/2014, Hoa Phat also exported 72,000 tons of steel billet to the ASEAN market, expanding consumer market Hoa Phat steel in the international and regional market.

Answering questions from investors about the cause of HPG profit growth in first 6 months, Chairman Tran Dinh Long said, half of profit increased from the increased output of phase II through better production management; another half of the increasing profit is due to revenue recognition of Mandarin Garden Complex and the growth of steel pipe product. In general, all three business segments of the Group were stable, contributed to positive outcomes.

Investors listen to the answers of ChairmanTran Dinh Long on HPG profit growth

HPG estimates that it will reach 900,000 tons of construction steel in 2014 and VND26,000 billion of turnover. Chairman Long said that this is the goal that Hoa Phat has announced a few years ago, and currently has become a reality to Hoa Phat. By the end of 2014, Hoa Phat will officially gain U.S$150 million profit after tax for the first time, striving to use its own capital to minimize the bank loan. Hoa Phat development policy primarily focuses on the position affirmation in the steel market. 

HPG Chairman openly answered much of investor’s other questions  about market share growing strategies of construction steel, steel pipes in the central region, south; search planning, use of iron ore resources for production of  blast furnaces of the steel integrated complex in Hai Duong and especially the implementation plan of phase 3 in this complex.... 

In the last 6 months and next year, Hoa Phat will focus to accelerate deployment of blast furnace No. 3 with capacity of 750,000 tons in Hai Duong, striving to complete the project in early 2016. Once completed, construction steel capacity of the Group will reach around 2 million tons per year.

Following this meeting, the investors will visit to Hoa Phat steel integrated Complex in Hai Duong province to learn process of blast furnace steel production next day.

Nghi Trần