Hoa Phat achieved more than 3,300 billion VND in profit after tax in the first quarter, up 16% over the same period.

On April 17, 2025 in Hanoi, Hoa Phat Group held the 2025 Annual General Meeting of Shareholders. The meeting approved the 2025 plan with expected revenue of VND 170,000 billion, an increase of 21% compared to 2024. Expected profit after tax is VND 15,000 billion, an increase of 24.8% compared to the previous year. At the end of the first quarter, Hoa Phat achieved more than VND 37,900 billion in revenue and VND 3,300 billion in profit after tax, up 22% and 16% respectively compared to the same period in 2024.

Hoa Phat Chairman Tran Dinh Long delivered the opening speech at the 2025 Annual General Meeting of Shareholders

The meeting was attended by more than 1,000 shareholders and delegates, representing 4.2 billion shares, accounting for 67% of voting shares. The HPG General Meeting of Shareholders approved all meeting contents such as the 2025 business plan, the 2024 dividend payment plan (20% in shares), the expected 2025 dividend rate, the situation of fund allocation, etc.

The congress was attended by more than 1,000 shareholders and delegates, representing 4 billion shares, accounting for 67% of voting shares.

Leading high-tech steel, ready for the new era

Hoa Phat always focuses on investing in production and supplying steel products with high quality and technical content, closely following market developments and optimizing costs at all stages.

Last year, Hoa Phat Group achieved more than VND 140,560 billion in revenue and a net profit of over VND 12,020 billion, up 16% and 77% respectively compared to 2023. The steel sector (including iron and steel and steel products) continues to play a leading role and affirms itself as the core business of the Group. Revenue and profit after tax of this sector accounted for 93% and 86% of the entire Group, respectively. Profit from the agricultural sector grew 4.6 times compared to 2023.

Export activities contribute significantly to 31% of the Group's total revenue. Hoa Phat's export markets are very diverse with over 40 countries and territories such as Southeast Asia, Japan, Korea, the US, Canada, European countries, etc. Export activities help diversify the consumption market, while contributing to foreign currency earnings and balancing Vietnam's trade balance.

CEO Nguyen Viet Thang shared: Hoa Phat maintains export ratio at around 20%

With an increasingly large scale of operations, Hoa Phat Group actively contributes to the socio-economic development of the whole country. Total contribution to the State budget in 2024 will reach nearly 13,500 billion VND, the highest in its 32-year history of operation and an increase of 48% compared to 2023.

The Group is currently focusing on promoting the production of high-quality steel lines to serve the manufacturing and processing industries such as automobiles, shipbuilding, mechanics, oil and gas, railways, household appliances, etc. and the defense industry, helping to be self-sufficient in domestic raw materials, not dependent on imports.

Hoa Phat is focusing all its resources on completing the Hoa Phat Dung Quat 2 Iron and Steel Complex project in 2025, creating a foundation for double-digit growth in the following years. When the Hoa Phat Dung Quat 2 Iron and Steel Complex project is completed, the Group's steel production capacity will reach 15 million tons/year, expected to put Hoa Phat in the Top 30 largest steel enterprises in the world.

Profit after tax in the first quarter reached more than 3,300 billion, up 16% compared to the first quarter of 2024

Chairman of the Board of Directors of Hoa Phat Group Tran Dinh Long said that in the first quarter, Hoa Phat's revenue reached more than VND 37,900 billion, an increase of 22% over the same period last year. Profit after tax was more than VND 3,300 billion, equivalent to completing 16% of the profit plan for 2025.

In the first quarter of 2025, Hoa Phat Group produced 2.66 million tons of crude steel, up 25% over the same period. Sales of hot rolled coil, high-quality steel, construction steel and steel billets reached 2.38 million tons, up 29% over the first quarter of 2024.

Of which, hot-rolled coil (HRC) reached 993,000 tons, up 23% compared to the first quarter of 2024. In particular, hot-rolled coil sales in the domestic market in the first quarter reached 874,000 tons, up 9% over the same period last year. Construction steel and high-quality steel products reached 1.19 million tons, up 25%. Hoa Phat also supplied 198,000 tons of steel billets for the domestic and export markets, more than double the same period.

Regarding downstream products, Hoa Phat Group supplied 89,000 tons of galvanized steel to domestic and foreign markets, down 9% compared to the first quarter of 2024. Steel pipes recorded 185,000 tons, up 42% compared to the first 3 months of 2024. Prestressed steel of all kinds reached 38,500 tons, up 7%.

The agricultural sector reached over 400 billion VND in the first quarter of 2025, which is a sector with a desirable profit margin in the same industry in the Vietnamese market. In the real estate sector, Hoa Phat is piloting a social housing project in Yen My and continues to research new projects. However, all real estate sectors including housing and industrial parks will account for no more than 5% of the Group's weight.

Chairman Tran Dinh Long also informed that phase 1 of the Hoa Phat Dung Quat 2 Iron and Steel Complex project has been put into trial operation. Phase 2 is being implemented on schedule, and the entire project is expected to be completed in the fourth quarter of this year. With the additional output from Dung Quat 2, the Group strives to achieve double-digit growth for this year and the following years.

Ready to start construction of Steel Rail and Special Steel Factory

During the discussion at the Congress, Chairman of the Board of Directors Tran Dinh Long and the Group's leadership openly answered questions from shareholders and investors about the business plan, dividend payment plan, high-speed railway steel production project, Phu Yen project, tariffs, etc.

Chairman of the Board of Directors Tran Dinh Long openly shared with shareholders about the Group's fields.

Mr. Tran Dinh Long commented that in 2025, the world situation has many unpredictable factors, especially geopolitical fluctuations of the world's superpowers, and the increasing protectionist trend. "Hoa Phat's culture is to overcome any difficulty and move forward with any obstacle. We will always move forward, ready to flexibly adapt to domestic and foreign market developments," said the Chairman of the Board of Directors of Hoa Phat.

Hoa Phat always tries to maintain the export ratio at around 20%. In fact, there was a period like 2024 when the domestic market was difficult, the export ratio reached 31% - the highest ever. This is an immediate solution, but in principle, we try to maintain the sales ratio at 20%.

Regarding the dividend payment plan, Hoa Phat plans to pay a 2024 dividend at a rate of 20%, all in shares. The reason is to ensure a safe cash flow with a defensive nature against world fluctuations, especially the US's reciprocal tax policy.

The congress was lively with questions from shareholders.

The Group's strategy in the coming time will be to strongly increase the production proportion of high-quality steel such as tire cord and beadwire, cold-formed steel, prestressed steel, non-alloy spring steel, steel for oil pipes, crane cables, steel for precision screws; smooth round steel bars and rolled steel bars for processing and manufacturing industries, etc.

Regarding the production of rail steel, Hoa Phat will set up a factory in Dung Quat with an investment capital of about 14,000 billion VND. Chairman Tran Dinh Long is confident that he will successfully produce rail steel products and many high-quality steels, in order to fulfill his commitment to the Prime Minister on the production and supply of all types of steel for the North-South high-speed railway project, urban railway projects in Hanoi, Ho Chi Minh City and many other projects. Currently, the Group has completed negotiations with a partner to supply a bloom casting line for rails. It is expected that in May, a contract will be signed for a rail rolling line and special steels. In 2027, it is expected to have rail products.

Shareholders are interested and have many questions about the high-speed railway steel rail production project.

Regarding the consumption capacity of HRC products, Chairman Tran Dinh Long said that currently, HRC steel is sold out as soon as it is produced. The company will continue to explore the market and is confident that it can increase HRC steel sales by 35%.

Chairman Tran Dinh Long emphasized: “Hoa Phat team has mastered the technology to produce many types of difficult steel. Steel for making car tires is difficult to 10, but Hoa Phat has produced and supplied to the market for many years. The difficulty level of rail steel is 7.8. Therefore, we are completely confident in fully supplying the demand for iron and steel materials for key national projects in the railway sector.”

For projects in Phu Yen, Hoa Phat is currently researching and will consider investing at the appropriate time.

Source: https://www.hoaphat.com.vn/tin-tuc/hoa-phat-dat-hon-3-300-ty-dong-loi-nhuan-sau-thue-quy-1-tang-16--so-voi-cung-ky.html