Hoa Phat Group’s net profit three times higher in Q1

Monday, 26 April 2021 12:31:49 (GMT+3)   |   Istanbul

Vietnam-based steel producer Hoa Phat Group has announced its financial results for the first quarter of the current year. In the first quarter, the company reported a net profit of VND 7 trillion ($304.24 million), three times higher compared to the same period of the previous year, while the company’s revenue totaled VND 31 trillion ($1.35 billion), up by 60 percent year on year.

In the given quarter, the company’s steel sales totaled more than 2.16 million mt, including 855,000 mt of construction steel, 386,000 mt of billet and 665,000 mt of hot rolled coil, up by 17 percent, 27 percent and 75 percent respectively, all compared to the fourth quarter of 2020. The company’s steel pipe and galvanized steel sales also increased sharply in the given period.

In 2020, Hoa Phat reported a net profit of VND 13.5 trillion ($587.57 million), increasing by 78 percent compared to the previous year and nearly 10 times higher than 2010. Last year, the company’s revenue totaled VND 91 trillion ($3.96 billion), setting a record, up by 41 percent compared to 2019.

Meanwhile, in 2021, Hoa Phat Group aims to produce 2.7 million mt of hot rolled coil, 920,000 mt of steel pipes, 300,000 mt of galvanized steel and over five million mt of construction steel and billet.

The company has also announced that it has appointed Nguyen Viet Thang, as CEO of Hoa Phat Group for a five-year term, replacing Tran Tuan Duong. The appointment of Nguyen Viet Thang is part of the company’s strategy of restructuring its operating model, transferring executive responsibility, and training the next generation of key leaders of Hoa Phat Group.

Hoa Phat will build a container factory in Vietnam, as SteelOrbis previously reported. “There are many favorable factors for Hoa Phat to build containers. Steel accounts for 60 percent of the cost of container production, Hoa Phat can make special weather-resistant HRC steel,” Tran Dinh Long, chairman of the board of directors, said.

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