According to Forbes Magazine's list of world USD billionaires in 2024, Chairman of Hoa Phat Group (HPG) Tran Dinh Long has the fastest asset growth in Vietnam, far surpassing other billionaires such as Pham Nhat Vuong, Ho Hung Anh, Nguyen Dang Quang...
Specifically, Mr. Tran Dinh Long had the fastest growth in assets among Vietnamese billionaires in the past year. The steel tycoon added 800 million USD, reaching 2.6 billion USD and ranked 3rd among the richest people on the Vietnamese stock market.
Recently, billionaire Tran Dinh Long's assets have increased sharply again as HPG shares continued to increase in price, from about VND 22,800/share at the end of October 2023 to VND 30,000/share as of now.
Previously, in October 2022, HPG shares fell to nearly VND11,000/share. At that time, Mr. Tran Dinh Long's assets fell to 1.2 billion USD according to Forbes' calculations. This was also the most difficult time for HPG, due to the sluggish real estate market, coking coal prices increasing 3 times higher than normal, and the USD price skyrocketing...
HPG shares have been rising for the past six months, as steel sales volumes and prices have rebounded in recent quarters. Domestic and global steel demand, although still weak, has recovered significantly.
Domestically, public investment is strongly promoted with a series of infrastructure projects being vigorously implemented throughout 2023. Some key projects being implemented include Long Thanh airport, highways, bridges, and ring roads in Hanoi, Ho Chi Minh City, etc.
Although profits have not really broken through again, the revenue of this steel enterprise has increased. Market share also tends to increase, further consolidating the No. 1 position in Vietnam.
In the fourth quarter of 2023, Hoa Phat recorded revenue of nearly VND 35,000 billion, up 23% over the same period. Accumulated revenue for the whole year of 2023 reached more than VND 120,000 billion, still down 16% compared to the previous year.
In the coming time, the assets of the Chairman of Hoa Phat Group are expected to increase even more when the prospect of HPG shares is positive. Hoa Phat's profits can increase rapidly following the expansion of the company's output and market share.
Hoa Phat increases its scale, Mr. Tran Dinh Long can surpass billionaire Pham Nhat Vuong
Mr. Tran Dinh Long is ranked among the fastest-rich Vietnamese in the world. The steel tycoon’s wallet could double to $5 billion if Hoa Phat’s profits increase as expected. However, in the short term, HPG shares are under selling pressure after a period of strong growth before.
Over the past few days, billionaire Tran Dinh Long’s assets have declined. According to Forbes, as of April 4, the king of Vietnam’s steel industry had $2.5 billion (down $100 million compared to the 2024 USD billionaire ranking announced by Forbes earlier this month).
With this fortune, Mr. Long ranks 1,366th in the world, after female billionaire Nguyen Thi Phuong Thao (2.8 billion USD, according to Forbes' calculation).
Currently, Hoa Phat has a crude steel capacity of 8.5 million tons/year, the largest in Vietnam and Southeast Asia. Of which, steel billets, high-quality construction steel is 5.5 million tons, hot-rolled steel coil is 3 million tons/year.
Hoa Phat is the market leader in Vietnam in construction steel and steel pipes; top 5 largest galvanized steel sheet manufacturers, and the only Vietnamese enterprise that can produce hot rolled coil (HRC), prestressed steel cables and many other high-quality steel types.
The company is implementing the Hoa Phat Dung Quat 2 iron and steel complex project in Quang Ngai with a designed capacity of 5.6 million tons of hot-rolled steel coil per year. The project is expected to be completed in 2025 and bring Hoa Phat's annual crude steel production capacity to over 14 million tons. At that time, Hoa Phat will be in the top 30 largest steel companies in the world.
Recently, Hoa Phat signed a memorandum of understanding to study and invest in 3 projects with a total estimated investment capital of more than 120,000 billion VND in Phu Yen province, including a steel project. This is quite a surprising move because Mr. Long previously said that he would only focus his efforts and money on the Dung Quat 2 project and then prioritize paying dividends to shareholders.
However, according to HPG, the group is considering the Phu Yen project with a new strategy, focusing on producing high-quality HRC steel, expected to be 6 million tons, serving industries such as automobile manufacturing, shipbuilding, mechanical engineering... reducing dependence on imported sources.
Previously, with the Dung Quat 2 mega project, when it came into operation, many people expected HPG's profits to double as predicted by billionaire Long. This also meant that HPG's stock price could skyrocket. At that time, Chairman Tran Dinh Long's assets could increase dramatically compared to the present, reaching the threshold of 5 billion USD, equal to, or even higher than, the current richest billionaire in Vietnam, Pham Nhat Vuong.
In a recent report, SSI Research forecasts that the current domestic supply shortage and increased exports will help Hoa Phat boost the HRC steel segment in the next few years after the Dung Quat 2 project comes into operation.
SSI Research expects steel industry demand to recover in 2024 with growth of more than 6% year-on-year.
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