Brian Jeffrey
Hoa Phat Group Reports Significant Profit Growth in Q3 2024
Hoa Phat Group (HPG), under the leadership of billionaire Tran Dinh Long, has reported revenues around 4 billion USD for the first three quarters of 2024, with a remarkable increase in post-tax profits for the third quarter.
In Q3 2024, HPG’s post-tax profit jumped 51% compared to the same quarter last year, rising from 2,000 billion VND to 3,022 billion VND. For the first nine months, their profit soared 2.4 times to 9,210 billion VND, achieving 92% of their annual profit goal.
This significant improvement for Vietnam’s leading steel manufacturer comes amid a rise in steel prices and demand. The steel sector accounts for 85% of HPG’s earnings, with agriculture as the second contributor.
For revenue in Q3, Hoa Phat reported over 34 trillion VND, marking a 19% year-on-year increase. In total, the company generated more than 105 trillion VND in the first nine months, which is equivalent to over 4 billion USD, reflecting a 23% increase from 2023. Additionally, the group has contributed 10,000 billion VND to the national budget within this timeframe, exceeding its total contributions for the previous year.
The year 2022 was tough for Hoa Phat, with revenue dropping to 142.77 trillion VND, a 5% decrease from 2021. Their consolidated post-tax profits fell to 8,444 billion VND, only 24% of the profit levels seen in 2021.
Despite these obstacles, HPG is set on developing its Hoa Phat Dung Quat 2 Steel Complex, aimed at producing 5.6 million tons of hot-rolled coil each year, with initial production expected by year’s end.
However, HPG is still contending with challenges from imported steel, particularly from China. As noted by the Vietnam Steel Association, China has ramped up its steel exports due to high production rates while facing a drop in domestic demand. This influx of affordable steel exports from China has led to global protectionist responses and may escalate further as international steel prices remain low.
Recent data from Chinese customs indicates that the country’s finished steel exports surged 21.3% in August compared to July and 14.7% compared to the prior year, totaling 9.5 million tons—making it the third-highest monthly export figure of 2024. China is likely to export over 100 million tons of steel this year, a level not recorded since 2016.
