Hoa Phat maintains target of 15,000 billion VND in after-tax profit

Hoa Phat 's thin rolled steel coil products

On April 17, Hoa Phat Group Joint Stock Company (HPG) held the 2025 Annual General Meeting of Shareholders.

This is the congress with the largest number of shareholders ever, with more than 1,000 people, showing the "heat" of Hoa Phat at this time.

Chairman of Hoa Phat Group, Mr. Tran Dinh Long informed before the meeting that Hoa Phat currently has more than 194,000 shareholders, making it the enterprise with the most shareholders in Vietnam.

"HPG shares are being called national shares, and the enterprise has become a national enterprise," said Mr. Long.

In 2025, Hoa Phat Group plans to have revenue of VND 170,000 billion, an increase of 21% compared to 2024. Profit after tax is expected to be VND 15,000 billion, an increase of 24.7% compared to the previous year.

Many shareholders are concerned that the tariff tension will affect Hoa Phat's exports and revenue, but the Chairman of Hoa Phat affirmed: "We boldly build a high business plan, to complete each quarter we need to achieve more than 4,000 billion VND in profit - a very high number. That is both a challenge and an opportunity, and setting a high growth target is also a goal to strive for. Hoa Phat will not adjust the business plan, even in the context of many market uncertainties."

Talking about the business results of the first quarter of 2025, Mr. Long said that the first quarter had revenue of 37,000 billion VND, profit after tax of 3,300 billion VND; increased by 19% and 15% respectively over the same period last year.

Also this year, the group will stably operate furnace No. 1 of the Hoa Phat Dung Quat 2 Iron and Steel Complex project and continue to invest in construction to complete furnace No. 2 in the fourth quarter.

Regarding the production of rails for the North-South high-speed railway project, Hoa Phat is confident in its capacity to research and produce rail steel, steel for making train and high-speed train axles according to orders from the Prime Minister as well as high-quality steel for key national projects and export to the world .

It is expected that Hoa Phat will produce the first rail in May 2027.

With nearly 6.4 billion shares in circulation, the estimated cash dividend payment is about VND 3,198 billion and the number of additional shares issued is 960 million new shares.

However, according to the newly announced resolution, Hoa Phat will eliminate cash dividends and pay the entire 20% dividend in shares, planning to issue nearly 1.3 billion additional shares.

The reason why Hoa Phat adjusted its dividend plan was due to "reviewing the reciprocal import tax policy announced by US President Donald Trump on April 2, 2025, applicable to US trade partners, including Vietnam, on a prudent basis and ensuring cash resources for the group."

Thus, this is the third year that the group has not paid cash dividends to shareholders. The Chairman of Hoa Phat Group also committed that from 2026, Hoa Phat will pay cash dividends to shareholders if the economy does not have further instability.

Hoa Phat also set out its orientation for 2025, such as: Stable operation of phase 1 of the Hoa Phat Dung Quat 2 Iron and Steel Complex project and continuing to invest in completing phase 2 of this project in the fourth quarter of 2025; researching and investing in projects to produce rail steel, steel for train and high-speed train axles as well as high-quality steel for key national projects and exporting to the world; continuing to promote strengths in livestock production management to increase business results; accelerating the implementation of projects such as industrial parks that have just been approved for investment policies, housing projects, etc.

In 2024, the Group's after-tax profit will reach 120% of the plan, up 77% over the same period in 2023 when it reached VND 12,020 billion. The after-tax profit margin on net revenue in 2024 will reach 8.7%.

TB (summary)

Source: https://baohaiduong.vn/hoa-phat-giu-nguyen-muc-tieu-15-000-ty-dong-loi-nhuan-sau-thue-409627.html