Hoa Phat achieved 3,320 billion VND in profit in the second quarter of 2024

In the second quarter of 2024, Hoa Phat Group achieved revenue of VND 39,936 billion, an increase of 34% over the same period last year. Profit after tax was VND 3,320 billion, an increase of VND 1,872 billion compared to the second quarter of 2023 (VND 1,448 billion). In the first 6 months of the year, Hoa Phat recorded VND 71,029 billion in revenue and VND 6,189 billion in profit after tax, contributing VND 7,400 billion to the State Budget.

Construction steel consumption is the driving force for Hoa Phat's revenue growth in the second quarter.

In the second quarter of 2024, the Steel Group accounted for the largest proportion, contributing 96% and 91% respectively to the Group's consolidated revenue and profit after tax. Agriculture ranked second in revenue and profit after tax, with proportions of 4% and 7% respectively. Real estate contributed third with 0.3% of revenue and 2% of profit after tax.

Construction steel output in the second quarter reached 1.27 million tons, up 33% over the previous quarter (956 thousand tons), while hot-rolled coil consumption fluctuated in the opposite direction, down 10% from 805 thousand tons to 724 thousand tons. Domestic construction steel market share still maintained its leading position at 38%.

Hot rolled coil output in Q2-2024 decreased by 10% compared to Q1-2024 due to difficulties in consumption in both the domestic and export markets. The amount of imported hot rolled coil at low prices flooding the Vietnamese market in the first half of 2024 increased sharply (6 million tons, 1.5 times higher than the same period in 2023 and exceeding the growth rate of the entire market), causing great pressure on Hoa Phat's hot rolled coil consumption in the domestic market. Along with that, although HRC prices in the Vietnamese market increased briefly in February 2024, they decreased continuously from March to the end of Q2-2024. The export market also faced many challenges from the surplus of hot rolled coil as well as the strengthening of trade defense measures in importing countries. Thus, construction steel consumption was the driving force for Hoa Phat's revenue growth in this quarter, offsetting the decline in revenue from HRC products.

For downstream steel products, Steel Pipe reached 318,000 tons, almost equivalent to the first 6 months of 2023. Hoa Phat Steel achieved an output of 222,000 tons and launched the premium quality G7 - Luxury steel line. Hoa Phat also released more than 69,000 tons of prestressed steel of various types (PC Bar, PC Strand, PC Wire).

In the Container segment, Hoa Phat continuously receives many orders from leading prestigious partners in Vietnam and the world such as Hapag-Lloyd - the largest container shipping company in Germany and in the Top 5 container shipping companies in the world, VSICO Maritime Joint Stock Company (VSICO), SeaCube Container Leasing Company, Hai An Transport and Stevedoring Joint Stock Company...

The Group is focusing on implementing the construction of the Hoa Phat Dung Quat 2 Iron and Steel Complex project, with a scale of 5.6 million tons of hot-rolled steel coil/year. Currently, the progress has reached 80% of phase 1 and 50% of phase 2. It is expected that the first products of phase 1 will be launched on the market by the end of 2024. Upon completion of the Dung Quat 2 project, Hoa Phat's crude steel production capacity will reach over 14 million tons/year, equivalent to the Top 30 largest steel enterprises in the world.

In the agricultural sector, Hoa Phat supplied nearly 300,000 pigs in the first 6 months of the year. Hoa Phat's livestock revenue increased by 30% over the same period last year thanks to more stable output and pig prices compared to 2023. Hoa Phat clean chicken eggs are currently in the Top 3 largest producers in Vietnam and leading in the North.

Hoa Phat household appliances launched a series of new products such as electric fan collection, new air cooler, semi-industrial RO water purifier, Funiki blender, Funiki rice cooker with lid... Other products of Hoa Phat such as air conditioners, freezers, refrigerators, dishwashers... are consumed very well, especially during the hot season.

Main image with new message "Continuously delivering clean water" of Hoa Phat Water Purifier

Hoa Phat also continues to invest in expanding existing industrial parks in Hung Yen and Ha Nam, creating more clean land and technical infrastructure to serve the investment and production needs of domestic and foreign enterprises.

Linking its development with the interests of the community, in the first 6 months of the year, Hoa Phat contributed 7,400 billion VND to the State Budget. In the first half of 2024, Hoa Phat also carried out many charity and social programs such as building 300 charity houses in Tra Vinh, bringing clean water to the community - donating more than 300 water purifiers to schools and medical facilities nationwide, starting construction of Binh Dong Primary School project in Binh Son district, Quang Ngai. Hoa Phat Group continues to implement annual programs such as "Heartbeat of Love" - ​​sponsoring heart surgery for children in less fortunate circumstances, "Godmother" - supporting monthly food expenses for orphans...