Leading in many business sectors.
Hoa Phat Group (HPG), owned by billionaire Tran Dinh Long, is the largest steel company in Vietnam, holding 38% of the domestic construction steel market share by the end of Q3 2024. This figure is significantly higher than the 22% recorded in the first half of 2015.
Since 2014, Hoa Phat has become the number one enterprise in the construction steel market. From a 7% market share in 2007, HPG surpassed Pomina and Thai Nguyen Iron and Steel - Tisco (TIS), capturing over 19% of the market share in 2014.
Since the beginning of 2021, HPG has become the largest crude steel producer in Vietnam, surpassing even Formosa.
With a 28-fold growth rate over 20 years, HPG is among the top 50 largest steel companies in the world .
Billionaire Tran Dinh Long, Chairman of Hoa Phat Group (HPG). Photo: HH
In the third quarter of 2024, HPG recorded a surge in after-tax profit of 51% compared to the same period last year, reaching VND 3,022 billion. The results for the first nine months of 2024 were very positive, with revenue reaching USD 4 billion; profit increased 2.4 times compared to the same period last year to VND 9,210 billion, achieving 92% of the full-year profit target.
Overcoming the shocks of 2022-2023, the positive business results in the first nine months of 2024 helped HPG shares recover from 11,000 VND in October 2022 to 27,000-29,000 VND/share recently. Mr. Tran Dinh Long's assets more than doubled from 1.2 billion USD to 2.5 billion USD.
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In 2025, phases 1 and 2 of the Dung Quat 2 mega-project will become operational, with a capacity of 5.6 million hot-rolled coil (HRC) steel. This is seen as a major boost for HPG. Will HPG's revenue and profits skyrocket, and will Mr. Tran Dinh Long further solidify his position among Vietnam's USD billionaires and break through to the number one spot?
With impressive Q3/2024 business results, HPG is rapidly recovering from the shock of falling steel prices and global steel consumption in 2022.
The Dung Quat 2 Steel mega-project is nearing completion. Photo: HPG
HPG's revenue is recovering strongly, exceeding 100 trillion VND in the first nine months of 2024 and could soon return to its peak of nearly 151 trillion VND as in 2021.
HPG's profit is also heading towards 15.3 trillion VND in 2020 and is expected to reach a record high of over 37 trillion VND in 2021. In the first nine months, HPG has already recorded 9,210 billion VND in profit.
The Dung Quat 2 project, with a total investment of up to $3 billion upon completion, will help HPG enter the top 30 largest steel companies in the world from 2025. At the 2023 Annual General Meeting, Mr. Tran Dinh Long stated that when the Dung Quat 2 plant is operational, Hoa Phat's revenue will increase by an additional 80,000-100,000 billion VND.
World steel prices are recovering strongly. Source: TEC
In Vietnam, steel consumption and prices have also increased following more positive signals from the real estate market and efforts to boost public investment…
In addition, HPG will continue to invest billions of USD in other mega-projects in Phu Yen such as: Bai Goc Port (expected to be around 24,000 billion VND); the Hoa Tam Industrial Park infrastructure investment and business project (around 13,300 billion VND); and the Hoa Phat Steel Complex project in Hoa Tam Industrial Park (around 86,000 billion VND).
Meanwhile, Formosa is no longer an obstacle to HPG's breakthrough; while Tisco continues to face financial difficulties.
In the agricultural sector, according to the Q3/2024 report, HPG continues to maintain its market share among the leading suppliers of clean chicken eggs and commercial pork. The company also made breakthroughs in the home appliance sector and expanded its existing industrial parks in Hung Yen and Ha Nam.
Tran Dinh Long's HPG is also benefiting from the sharp rebound in world steel prices, rising from 2,780 RMB/ton in mid-August to 3,381 RMB/ton on October 16th, amidst China's crucial "reversal" decision to aggressively implement measures to rescue the real estate market and stimulate the economy.
With the completion of phase 2 of the Hoa Phat Dung Quat project, profits have increased significantly.
According to Forbes' ranking, billionaire Tran Dinh Long currently has a net worth of $2.5 billion. With the rapid development of his projects and increasing profits, his wealth is also growing rapidly, potentially catching up with billionaire Pham Nhat Vuong (as of October 15th, Pham Nhat Vuong's net worth was $4.2 billion according to Forbes), and consistently maintaining his position on the list of Vietnam's richest people.
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 tariffs on Chinese steel into Vietnam are currently 0% under the ASEAN-China Free Trade Agreement. In addition, there are environmental concerns and Vietnam's Net Zero commitment by 2050.
HPG has experienced two major setbacks (in 2012 and 2022) as sales volume declined. The group suffered heavy losses in the last two quarters of 2022. Mr. Tran Dinh Long even dropped out of 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
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