SSI Research Forecasts Positive Earnings for Hoa Phat
- 135
- Business
- 12:08 16/02/2024
DNHN - SSI Research estimates that HPG’s net profit in 2024 will reach VND11.2 trillion, up 64% year-on-year, thanks to the recovery in both consumption output and steel prices.
In the fourth quarter of 2023, Hoa Phat Group (HPG) recorded impressive results with net revenue and net profit reaching VND34.4 trillion (up 33% year-on-year) and VND2.97 trillion (up 48% quarter-on-quarter), respectively, marking the best business results in the last six quarters.
The strong recovery in profit was mainly driven by increased consumption output, although steel prices only increased slightly. HPG’s total output of construction steel, HRC and steel billets all increased significantly, reaching 2.1 million tonnes, equivalent to 99% of operating capacity and the third-highest output level in history.
In particular, the construction steel segment has recovered impressively, with output increasing by 48% year-on-year and 32% quarter-on-quarter. This was supported by the recovery in domestic market demand and improved exports, along with the company’s increased market share. The HRC segment also recorded record consumption output at 804,000 tonnes, up 36% year-on-year and 5% quarter-on-quarter.
Although full-year 2023 profit decreased year-on-year, HPG still completed 79% of the company’s revenue plan and 85% of its net profit plan.
With the outlook from 2024 onwards, SSI Research expects steel prices to increase slightly due to pressure from a slight decrease in global supply and the recovery of the Chinese real estate market. However, steel prices are unlikely to increase sharply due to the delay in the recovery of this market, as well as pressure from steel prices and profit margins compared to rising raw material costs, which could drive production activities in China to return.
SSI Research estimates that HPG’s net profit in 2024 will reach VND11.2 trillion, up 64% year-on-year, thanks to the recovery in both consumption output and steel prices. The company expects construction steel and HRC output to continue to increase, reaching 4.5 million tonnes and 3 million tonnes in 2024, respectively.
In the long term, SSI Research expects HPG’s profit to continue to grow by an average of over 30% per year in the period 2025 to 2027, thanks to the Dung Quat 2 project. This is expected to help the company double its HRC consumption output, from 2.8 million tonnes in 2023 to 7.5 million tonnes in 2027.
PV
Related news
- ShopeeFood and Grab dominate Vietnam’s food delivery market
- The ambitions of major enterprises in 2025
- Rice export prices expected to rebound soon due to limited supply
- Attracting investment in renewable energy – Driving the green economy
- Who are the two mysterious female tycoons holding 52 million HQC shares?
- GDP growth target for 2025: Aiming for a breakthrough pace
- “Green treasure” in the heart of the Mekong Delta
- Việt Nam sets import tariff quotas for salt and poultry eggs in 2025
- Brandnew e-commerce law to address policy gaps
- Bến Tre sets ambitious economic goals in 2025
- Chopin: The magical piano – Touching the heart and emotions of the audience
- The collaboration between Green power and Huawei: A major step in developing a 100MWp solar energy project
- VITA VINA: Where dreams of vocational study abroad take flight
- Green Power and Green Carbon Group sign cooperation agreement for development
- Vinpearl, Hoa Sen Group, Bim Group, and Thành Thành Công – Biên Hòa are the most favored employers
- “Imposing high taxes on short-term real estate purchases reduces market liquidity”
- The policies shaping the future of the United States
- Proposal to provide financial support for troubled BOT traffic projects
- Vietnam promotes a strategy to penetrate the Middle Eastern Halal market
- Request to thoroughly resolve real estate issues and avoid "criminalization"
Đọc thêm Business
Rice export prices expected to rebound soon due to limited supply
The Vietnam Food Association (VFA) has forecasted that rice exports in 2025 will reach 7.5 million tons. The rice market is currently at its lowest point, but it is anticipated that importers will soon ramp up purchases, driving prices upward.
GDP growth target for 2025: Aiming for a breakthrough pace
According to the proposal, Vietnam's national GDP growth target for 2025 must reach at least 8%, laying a solid foundation for achieving double-digit growth rates.
Economic expert Võ Trí Thành assessed: President Donald Trump’s new trade policy will impact Vietnam
According to Dr. Võ Trí Thành, Director of the Institute for Brand and Competitive Strategy Research, Donald Trump’s new trade policy will have significant effects on Vietnam’s economy. He also provides strategic recommendations for businesses.
Vietnam's market advantage: Investment opportunities in a new context
Balancing interests, striving for a 7.5% GDP growth, enhancing international cooperation, promoting technological innovation, and developing appropriate foreign policies are the "keys" for the nation and businesses to overcome challenges.
Việt Nam sets import tariff quotas for salt and poultry eggs in 2025
The Ministry of Industry and Trade has announced import tariff quotas for salt and poultry eggs for 2025, aiming to meet domestic production and consumption needs.
Brandnew e-commerce law to address policy gaps
The proposed law seeks to address gaps in existing regulations and keep pace with technological advancements and evolving business models.
Bến Tre sets ambitious economic goals in 2025
The southern province of Bến Tre eyes ambitious goals to develop its industrial sectors, increase investment, and improve the business environment.
The collaboration between Green power and Huawei: A major step in developing a 100MWp solar energy project
On January 13, 2025, a significant milestone in the clean energy sector was achieved as Green Power Company (Vietnam) and Huawei Group (China) officially signed a Memorandum of Understanding (MOU).
Green Power and Green Carbon Group sign cooperation agreement for development
On January 2, 2025, the collaboration between Vietnam-based Global Green Power and Green Carbon Group marks a testament to continuous efforts in promoting sustainable development through the application of green technology.
Korean businesses wants to import agricultural and seafood products from Ca Mau
Korean businesses have expressed a desire to import agricultural and seafood products from Vietnam, while also researching and developing cosmetics and pharmaceuticals from the unique ingredients of Ca Mau.