Hoa Phat's nine-month profit is the lowest in eight years.

Hoa Phat 's third-quarter profits increased sharply compared to the same period last year, but this was not enough to boost the nine-month results, which remain the lowest since 2016.

Hoa Phat Group has just announced its third-quarter business results, with revenue reaching nearly VND 28,800 billion, a decrease of 16%. Net profit after tax was recorded at VND 2,000 billion, a significant increase compared to the nearly VND 1,800 billion loss in the same period last year and a 38% increase compared to the second quarter of this year.

For the first nine months of the year, Hoa Phat achieved revenue of VND 85,430 billion, a 27% decrease compared to the same period last year. After-tax profit reached VND 3,830 billion, a decrease of over 60% and equivalent to 48% of the annual plan. The growth momentum in the third quarter shows a more positive outlook for the "king of steel," however, the nine-month profit remains the lowest since 2016.

According to Hoa Phat, raw material prices remained stable in the third quarter, while sales volume gradually improved quarter by quarter. Sales of steel products in the third quarter increased by 12% compared to the second quarter and 24% compared to the first quarter of the year. In addition, maintaining low inventory levels helped improve profit margins in the past quarter.

In the first nine months of the year, the "king of steel" produced 4.8 million tons of crude steel, a decrease of 21% compared to the same period last year. Sales of all types of steel (excluding steel pipes and galvanized sheets) reached 4.6 million tons, a decrease of 19%.

Hoa Phat's construction steel and high-quality steel production reached 2.57 million tons in the first nine months, a decrease of 25%. Of this, the export market contributed nearly 490,000 tons. HRC (Housing, Concrete, and Fiber) production reached nearly 2 million tons, a decrease of 3%. In addition, Hoa Phat also supplied the market with 488,000 tons of steel pipes and 240,000 tons of various types of coated steel sheets.

According to Hoa Phat, as of the third quarter, the company continues to lead the market share for construction steel and steel pipes in Vietnam, with 33.3% and 27.3% of the total market share, respectively.

Hoa Phat Group began supplying container shells to the market in early August. Also in that month, the group put the first berth of its general container port in Dung Quat ( Quang Ngai ) into operation.

In the home appliance sector, the group has launched new products such as large freezers, washing machines, water dispensers, and water purifiers. In the agricultural sector, Hoa Phat optimizes the scale and efficiency of investment in animal feed production plants and livestock farms. Hoa Phat also continues to invest in expanding existing industrial parks in Hung Yen and Ha Nam provinces.

Regarding market prospects, Hoa Phat Group stated that the market may gradually improve, but not significantly, due to ongoing economic difficulties both domestically and internationally. The Group prioritizes effective inventory management and adjusting production and business operations to suit the current situation. Simultaneously, Hoa Phat Group stated that it will closely monitor the progress of major investment projects, especially the Dung Quat 2 Iron and Steel Complex.

Minh Son

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