Leader in many industries
Billionaire Tran Dinh Long's Hoa Phat Group (HPG) is the largest enterprise in the Vietnamese steel industry, with a 38% market share of domestic construction steel by the end of the third quarter of 2024. This figure is much higher than the 22% recorded in the first half of 2015.
Since 2014, Hoa Phat has become the number 1 enterprise in the construction steel market. From a market share of 7% in 2007, HPG surpassed Pomina and Thai Nguyen Iron and Steel – Tisco (TIS), accounting for more than 19% of the market share in 2014.
Since early 2021, HPG has become the largest crude steel producer in Vietnam, surpassing Formosa.
With a growth rate of 28 times in 20 years, HPG is in the top 50 largest steel enterprises in the world.
USD billionaire Tran Dinh Long, Chairman of Hoa Phat Group (HPG). Photo: HH
In the third quarter of 2024, HPG recorded a 51% increase in after-tax profit over the same period, to VND3,022 billion. The results for the first 9 months of 2024 were very positive, with revenue reaching 4 billion USD; profit increased 2.4 times over the same period to VND9,210 billion, reaching 92% of the annual profit plan.
Overcoming the shock of 2022-2023, the positive business results in the first 9 months of 2024 helped HPG shares recover from VND 11,000 in October 2022 to VND 27,000-29,000/share as recently. Mr. Tran Dinh Long's assets more than doubled from 1.2 billion USD to 2.5 billion USD.
The most stable among Vietnamese USD billionaires?
In 2025, the Dung Quat 2 super project, phases 1 and 2, will come into operation, with a capacity of 5.6 million hot rolled coils (HRC). This is considered a boost to help HPG break through. Will HPG's revenue and profit skyrocket, and will Mr. Tran Dinh Long become more solid in the list of Vietnamese USD billionaires and break through to the number 1 position?
With impressive Q3/2024 business results, HPG is recovering quickly from the steel price shock and declining global steel consumption in 2022.
Dung Quat 2 Steel mega project is nearing completion. Photo: HPG
HPG's revenue is recovering strongly, with more than VND100 trillion in the first 9 months of 2024 and could soon return to the peak of nearly VND151 trillion in 2021.
HPG's profit is also aiming for 15.3 trillion VND in 2020 and is expected to still be a record of more than 37 trillion VND in profit as in 2021. In 9 months, HPG had 9,210 billion VND in profit.
The Dung Quat 2 project, with a total investment of up to 3 billion USD when completed, will help HPG enter the top 30 largest steel enterprises in the world from 2025. At the 2023 shareholders' meeting, Mr. Tran Dinh Long said that when the Dung Quat 2 factory is in operation, Hoa Phat's revenue will increase by 80,000-100,000 billion VND.
World steel prices are recovering strongly. Source: TEC
In Vietnam, steel consumption and steel prices also increased following more positive signals from the real estate market, efforts to promote public investment...
In addition, HPG will continue to pour billions of dollars into other mega projects in Phu Yen such as: Bai Goc Port (estimated at about VND 24,000 billion); Hoa Tam Industrial Park Infrastructure Investment and Business Project (about VND 13,300 billion); Hoa Phat Iron and Steel Complex Project in Hoa Tam Industrial Park (about VND 86,000 billion).
Meanwhile, Formosa is no longer a barrier to HPG's breakthrough; Tisco is still often in financial difficulty.
Regarding the agricultural sector, according to the third quarter report of 2024, HPG continues to maintain its market share in the leading group of clean chicken eggs and commercial pork supplied to the market. This enterprise also makes a breakthrough in the household electrical appliances sector and expands existing industrial parks in Hung Yen and Ha Nam.
Mr. Tran Dinh Long's HPG is also benefiting when the world steel price has strongly increased from 2,780 yuan/ton in mid-August to 3,381 yuan/ton on October 16 in the context of China's important "turnaround" decision, rushing to launch solutions to rescue the real estate market and stimulate the economy.
With the completion of phase 2 of the Hoa Phat Dung Quat project, profits also increased sharply.
Currently, according to Forbes, billionaire Tran Dinh Long has assets of 2.5 billion USD. With the speed of project development and increasing profits, Mr. Long's assets are also accelerating, possibly catching up with billionaire Pham Nhat Vuong (as of October 15, Mr. Pham Nhat Vuong's assets were at 4.2 billion USD according to Forbes), and always holding a position in the list of the richest people in Vietnam.
However, billionaire Long’s HPG also faces many risks. These include slowing economic growth, slow disbursement of public investment, and increased domestic and international competition. Import tax on Chinese steel to Vietnam is currently 0% according to the ASEAN-China trade agreement. In addition, there are environmental issues and Vietnam’s Net Zero commitment by 2050.
HPG has witnessed two shocks (in 2012 and 2022) when consumption output decreased. The group suffered heavy losses in the last two quarters of 2022. Mr. Tran Dinh Long fell off Forbes' list of USD billionaires at the end of that year.
Vietnamnet.vn
Source: https://vietnamnet.vn/10-ty-phu-usd-viet-nam-ong-tran-dinh-long-vung-chan-top-dau-2332332.html
Comment (0)